How Solar Panels Increase Home Value
Get Financial Gains With Solar Panels And Battery Storage
If you’re a smart homeowner who knows all the tactics to reduce your monthly expenses and increase the home value, you will definitely know that solar panels and battery storage are some of the most effective ways to increase your cultured stone’s value on the real estate market.
Although numbers can change with each type of installation and property, recent studies have shown that there has been an average increase of around $4000 to $6000 in resale value for every 1 kilowatt of solar panels installed.
With a $4000 per kilowatt, a 5-kilowatt solar panel installation can add up around $20,000 to the market value of a medium-sized home in the US. In California, the $6000 per kilowatt, the small 3.1-kilowatt system is known for adding an average of around $18000 to the market value of a mid-sized home. This is a considerable amount that every homebuyer would definitely want to pay. Furthermore, the solar home’s selling price is generally 3.74% greater than equal-sized properties without solar.
Therefore, if you’re worried about the initial high cost of good solar battery storage for homes, you should know that the price of these solar panels and batteries is usually regained in the home’s sale price. Additionally, households that buy solar are rewarded with very low energy and utility bills. They are also given healthy tax incentives to cover the system’s costs several times over the whole period of its warranty.
The Appreciated Added Value Of Solar
Every buyer generally considers monthly electric bills when they purchase a home. Therefore, when evaluating a long-term financial value, these buyers have the option to the premium of a solar-powered home.
With so much concern and talk about renewable energy and conserving the environment, the relevant authorities have figured out that by installing a residential solar panel system, the owner gets an upgrade, just like they would after having their kitchen renovated, and this is exactly why home buyers are all the more ready to pay a premium price for the environmental and economic perks that are attached with a solar home.
Also, these solar systems are also responsible for low monthly electricity bills and they offer tax incentives for new installations. Due to these factors, homeowners can easily predict how they will recover their initial investment, and also gain a considerable amount of return on their investment. So, if you’re planning to purchase a solar energy system, know that you’re signing up for adding a big percentage to the value of your property. This is by far the smartest and sustainable energy solution, and it has enticed a lot of Americans towards it.
What Affects The Solar System’s Added Value?
The increased property value that comes due to a solar energy system is made up of several factors and this varies from market to market. The value added to each home from solar systems can change depending on the following factors:
- Region of the country
- Price of electricity in the locality
- The installation prices of solar
- Replacement value of the system
- How environmentally conscious the community is
- Age of the system
- How frequently power outages occur
- How well the locals understand solar technology and its benefits
- Incentives are given by the state
Seller Incentives For Getting Solar Panels
An increase in property value is not the only benefit homebuyers get. In addition to this, homeowners enjoy a plethora of other financial benefits as well, including:
- Rebates and incentives are given by the state. Net metering is a prime example
- The federal solar investment tax credit (ITC)
- Getting a cheaper option by replacing the grid electricity with a cleaner and more sustainable energy resource.
Also, for the seller of a property that has solar installed, there are significant advantages in the real estate market, like:
- The seller can ask for a higher price for the house as compared to properties that don’t have solar.
- Solar panels are considered an upgrade by buyers, and they are willing to pay a higher price.
- Homes having solar systems are sold faster as compared to those without.
- There is a 100% return on solar investment when selling a home.
Every homeowner that is selling their property with a solar installed system should consider the fact that buyers will demand documentation that clearly shows that the system was properly installed by a well-known and reputable solar dealer. They should also have proof that the system is significantly reducing electricity bills.
Get in touch with USA Solar Power and our advisors will tell you how to document the cost-saving on the electricity bills.