We already know solar power saves homeowners money, often totaling hundreds or thousands of dollars in energy savings each year. Solar panels are also a hot commodity on the home-buying market thanks to their energy efficiency and overall cost savings. But do solar panels affect property values? The short answer is yes. Read on to find out more about how solar panels can send your property values sky-high while also reducing your carbon footprint.
Do Solar Panels Affect Property Values?
How Solar Panels Affect Property Values
The big question is: Do solar panels affect your property values over time? The Office of Energy Efficiency and Renewable Energy says yes. According to the federal agency, a solar energy system will likely increase your home’s value, with research showing that buyers nationwide are willing to pay a premium as high as $15,000 for a home with solar panels already installed. Those findings are echoed by recent solar research done by Zillow. The real estate information company found that solar panels can increase a home’s value by up to 4.1 percent when compared to homes with no solar panels. In simpler terms, that means an additional $9,274 for a median-valued home in the U.S.
Where Do Solar Panels Offer the Greatest Value?
The data shows that solar panels increase a home’s value – but where do homeowners get the most bang for their buck? To find out, Zillow’s solar research also compared the values of homes with solar panels across the country. The study examined a series of real estate transactions, comparing standard homes to homes that featured solar panels in their listing descriptions. Zillow controlled for “observable attributes” including the home’s size, age, and market value, as well as the time of the year that the home sold. With that data, the company was able to identify the top 10 states with the highest solar premiums, all based on median-valued homes in the listed areas:
- New Jersey: 9.9% or $32,281
- Pennsylvania: 4.9% or $8,589
- North Carolina: 4.8% or $8,996
- Louisiana: 4.9% or $7,037
- Washington: 4.1% or $15,916
- Florida: 4% $9,454
- Hawaii: 4% or $24,526
- Maryland: 3.8% or $10,976
- New York: 3.6% or $10,981
- South Carolina: 3.5% or $5,866
Of course, even outside of these areas, it’s clear that solar panels can significantly increase home values.
Increasing Your Home’s Eco-Friendly Appeal
It’s clear that solar panels have a major impact on home values – but why is that? Zillow Senior Economist Sarah Mikhitarian told CNBC that it’s thanks in part to the national “increased demand for green living.” Mikhitarian explained: “More than 80 percent of buyers now say energy-efficient features are important in selecting their home. We are increasingly finding that these attributes are important to prospective homebuyers. This is part of the reason that there is a premium associated with it. The other piece is that there is true value provided by solar panels – namely, future energy savings.” In short, the long-term savings associated with solar panels make them one of the most attractive amenities on today’s real estate market.
At the end of the day, it’s clear that a solar panel system can boost your home’s value. These eco-friendly amenities can also slash your electric bill, along with your carbon footprint. Ultimately, solar panels are one of the smartest investments today’s homeowner can make.
If you’re wondering how solar panels could benefit your home, your business, your wallet, or the environment, contact ArrowPoint Solar today. Our expert engineers have helped more than 1,000 homeowners and businesses in Missouri, Oklahoma, and Arkansas save money and reduce their carbon footprints by switching to solar energy. We’re proud to be the leading experts in solar and LED energy in the Ozarks. To learn more about the value of solar energy and how it could benefit you, request a free solar consultation today.