How Do Solar Panels Affect House Prices?

There have been many studies done on how solar panels affect house prices, but few of them are backed by solid data. A new study from Berkeley Lab found that solar panels increase home resale values by as much as five percent. The higher the wattage of the PV system, the higher the resale value of a home. The bigger the PV system, the more energy it offsets. Therefore, the more homes with solar panels are being built, the better, as this will add to the value of the house.

Another study conducted by Zillow Research found that homes with solar panels sold for four percent more than comparable houses without solar power. Of course, this effect is only one factor. Other factors, such as local electricity rates, will affect the price. The additional cost of solar panels will also affect the price. However, these factors must be considered carefully when determining how solar panels affect house prices. If the homeowner has a great sense of responsibility and understanding of energy efficiency, a solar panel-equipped house will increase the value of the home.

In general, solar power systems add about $3.78 per watt to the value of a house, according to a study by the Lawrence Berkeley National Laboratory and independent appraisers. An average-sized solar array can add as much as $15,000 to a home, although this increase varies widely by location, electricity rates, and size of the system. For example, homes in Riverside, Calif., can command 2.7 percent more than homes in New York City and 5.4 percent more in San Francisco.

In contrast, homeowners in hot markets can expect to receive a premium of between $15 and twenty percent if they have solar panels installed. On average, a six-kW PV system increases the value of a home by about $22,000 to $30,000. This is nearly double the average increase in price compared to comparable houses without solar panels. While the premium will vary widely based on the location and age of the system, the value increase is still significant.

Another study by the National Renewable Energy Laboratory (NREL) found that a solar-powered home costing nine thousand dollars was worth $9,274 more than the median-priced home. In addition, a solar-powered home can add up to six thousand dollars to the price of a home, according to the Appraisal Journal. While the exact value of your home may vary from another, the overall value will increase dramatically.