Do Solar Panels Decrease House Value?
A recent study from Zillow has shown that homes with solar power installations generally sell for more. But the value add is not consistent across all locations. In some places, solar panels increase the resale value by as much as $5,911, but in others, it is less. Regardless of the cost of installing solar power on a home, there are several factors to consider when evaluating the impact of solar power on the value of a home.
The size of a PV system has a direct impact on a home’s resale value. Moreover, larger systems are likely to offset more of a home’s electricity costs. So while a larger system will increase a home’s resale value, homeowners should aim to offset their increased electricity usage. And while there is a chance that their homes will lose value, this is unlikely to happen in the short term.
Homeowners who install solar panels typically increase their home’s value by $10 to $25 per kilowatt of power produced. Depending on the region, this can range anywhere from 3% to 8%. But in Phoenix, the average solar installation adds about $20,000 to a home’s value. That is significant money for an average home! While the initial investment for a solar power system might be expensive, it will definitely pay off in the long run.
According to Zillow’s study, the value increase in different cities depends on the location. In Riverside, California, solar homes add 2.7 percent to the value of a home. In NYC, solar homes boost the value by almost double that. However, if you live in a hot market, the value increase may be even higher. A typical San Francisco home will gain about 4.6% over a non-solar home.
If you are wondering do solar panels decrease property value, the answer is no. Research shows that solar panels increase resale value by an average of $4,020 per kilowatt. Installing five kilowatts of solar panels will add more than $28,300 to a medium-sized home in California. And the value increase will continue to rise as the scale increases. Adding solar panels to a home will significantly increase its resale value.
Although some studies have found that solar panels increase home value, a study of homes with and without solar energy showed that solar-equipped homes commanded four percent more than homes with no panels. That means that a solar-equipped home can add up to $41,000 to a home’s value. However, this increase will vary widely based on the market in your neighborhood and the size of the solar panels on the roof. You should also consider the location of the solar panels in relation to the price of the home.