The Impact of Solar Energy on Home Values
If you're looking for ways to upgrade your home and increase its value, consider adding solar power. Solar energy systems installed on your property can reduce monthly electricity bills and make your home more environmentally friendly. Residential solar panels increase the overall home's value in addition to your home's increased resale value potential.
Top Benefits of a Solar Energy System
As energy costs continue to rise, having a means to energy savings through a solar panel system is refreshing.
Having a system that generates your own power has an advantage over comparable homes without a customized home solar system.
Energy Efficiency
Solar power systems generate clean, renewable energy, reducing your reliance on the electrical grid and decreasing your monthly electric bills. Energy-efficient homes appeal to potential buyers looking for ways to save money and live sustainably. A solar home is a home that is energy efficient and extends to an increased market value.
Low Maintenance
Solar panels are low-maintenance and require little upkeep, which is an attractive feature for current homeowners and prospective buyers. A home solar system installation costs the homeowner initially, but solar customers can be confident in the solar investment with a long-lasting warranty. Buyers can be confident that they won't need to replace or repair the panels often.
Increased Home Value
The U.S. Department of Energy released an informative bulletin, Planning for PV: The Value and Cost of Solar Electricity, that speaks to the value of a home solar installation. They quote a recent survey conducted by Japan's Sharp Electronics. This survey revealed that 8 out of 10 Americans want the option for solar power in homes being built. It also states that half of those surveyed would pay up to 10% more for a solar-powered home.
Environmental Friendliness
With an increasing focus on environmentalism and sustainability, many home buyers are looking for homes with a low carbon footprint. Solar power systems help to reduce greenhouse gas emissions and make your home more environmentally friendly. Solar installations are an effective investment into a green home and a greener future.
How Do Solar Panels Increase Home Value?
An energy-efficient home can be of greater value to a potential buyer as it translates to reduced monthly costs after purchase. There are factors influencing solar's added value, such as where your home is located.
When looking at the benefits of a solar energy system, remember that states have different solar incentives for solar panel installations and financial breaks for a solar-powered home.
Any upgrade or renovation requires an investment that gives the homeowner an increased home value. The added value of an upgrade that provides its own power and reduces utility bills is a strong incentive to put money into a solar system.
Solar panels increase one's home value and are appreciated and sought after in the real estate market. The use of solar energy is an effective tool to increase property value and potential resale value, too.
How Do Solar Panels Affect Property Taxes?
Property value increases generally translate into higher tax rates. Many states offer exemptions for homeowners who invest in installing solar panels.
Individual states that offer exemptions will use the home value before installing the solar energy system. This means the exemption does not include the new property value with solar installation. SEIA (Solar Energies Industries Association) reports 36 states offer solar panel property tax exemptions.
Below are a couple of examples of property tax exemption states:
Montana- exemption options for up to 10 years
Colorado- tax exemption on renewable energy components or systems purchased
California- 100% exemption with the California Active Solar Energy Tax Exclusion option until January 1st, 2025
Each state has specific terms and conditions within its own property tax exemption laws. These exemptions allow homeowners the benefit of increased property value with the benefit of a solar energy system property tax exemption.
Homes with solar panels benefit from reduced property tax which also helps offset the initial investment of the system. Property tax exemptions do not negatively impact the home value in any way.
Homeowner Incentives for Installing Solar Panels
With an increased home value in comparison to non-solar homes in their community, homeowners purchasing solar systems also enjoy several financial and social advantages, which include:
Net Metering: This billing structure allows solar system owners to credit their excess electricity generated during peak times. This electricity credit allows the homeowner to use the credited power to cover their cost of local electricity rates when a solar system is pulling power from the grid.
Rebates: local solar incentives are state-specific and are available for both solar panel installation and have a variety of lengths of time for property tax exemptions
Tax Credits: Currently, the US government is offering residential homeowners a federal solar tax credit. Looking into the specifics of this type of credit can be up to a 30% credit on the total solar system cost.
Various incentives and rebates are currently being offered to homeowners to upgrade their homes with a solar energy system. The answer to the question...do solar panels increase home value?...absolutely yes, and in addition to the incentives, it becomes more desirable and attainable too.
Do Solar Panels Make Sense for Your Home?
Installing solar panels makes sense for most homes looking to improve both market value and energy efficiency. Take time to ensure that your space and solar energy system are a solid fit. Solar installers can help ensure your system will suit your home's needs. Consider the following when planning
Location: Many locations support using a solar system. by offering tax credits and different rebates to sweeten the change to clean energy.
System Ownership: Solar system ownership can assist homeowners in achieving an increase in their home's market value and will also lower their carbon footprint. Consider purchasing your system over leasing.
Increased Home Sale Opportunities: Real estate agents can market your home as environmentally friendly. Solar homes sell faster than those without home solar installation. Any prospective buyer interested in self-generated power will want a home with increased value, like a solar home.
Off-grid capability: A solar-powered home with optional off-grid capability allows owners increased self-sustained power and freedom from power outages and rising electricity costs. Off-grid equals no electricity bill!
Savings: Solar panels save on monthly costs with your local utility company. Also, many locations can potentially feed excess energy generated from your system into the power grid.
Solar Energy: The Smart Choice for Your Home
In conclusion, adding solar power to your home is a smart investment that can increase your property's value and resale potential. Not only will you reduce your energy bills and make your home more energy-efficient, but you'll also make it more appealing to potential buyers looking for a home that is both environmentally friendly and cost-effective.
