Does Solar Panel Increase Home Value?
If you have been wondering does solar panel increase house value, read this article to find out. In it, we’ll discuss the environmental benefits of solar panels and the property tax exemptions available to homeowners who install them. But before we get to the benefits of installing solar panels, let’s quickly discuss the resale value of homes that have them. Despite all of the arguments in favor of installing solar panels, the LBL report isn’t the only authority on this topic. In fact, a recent Zillow research study found that houses without solar power sold for 4.1% less than comparable homes with solar power.
Installing solar panels in your home
In addition to being environmentally-friendly, solar-powered homes are attractive to potential buyers, as they reduce energy bills and carbon footprints. However, many homeowners are unsure of the added value of solar panels in their homes. Installing solar panels in your home increases house value. The benefits of solar-powered homes are numerous. The cost of solar power panels is low, and the equipment used to install them is becoming more efficient and environmentally-friendly.
The average home in larger coastal cities sells for between 4.4.6 percent more. The value of solar-powered homes depends on the type of system installed, the age of the home, and its location. It is therefore crucial to consider the benefits of installing solar-powered panels before selling your house.
Property tax exemptions for solar panels
Several states offer property tax exemptions for solar panels. Depending on the state, these exemptions can save a homeowner as much as $225 per year. The federal government has approved the use of solar panels for residential buildings and some states have local exemptions as well. In some states, the use of solar power on a house can significantly increase its value and lower property taxes. If you live in one of these states, there are also several other ways to benefit from the tax benefits of solar energy.
For example, a solar array installed on a roof can increase the value of a house by $15,000, or about 2% of its value. If the property tax rate were 1.5%, then this added value would cost $225 per year, or $275 per year. Fortunately, solar property tax exemptions for homeowners may provide the additional funds to install a solar array. This tax break is based on the amount of electricity produced from renewable sources.
Environmental benefits
The general public has embraced solar energy systems, and this trend has led to an increased interest in homes with solar panels. As the US market strives to become carbon neutral by 2050, more potential buyers are looking for properties with solar panels. These homes also increase the value of a home, because many tenants want to rent them. Moreover, landlords who recognize the value of a solar panel on their property are more likely to install it.
Increase in resale value
Recent studies have found an increase in the resale value of homes with and without solar energy systems. One study conducted by the National Bureau of Economic Research (NBER) found that solar panels added three to four percent to the resale price of homes. Another study by the Berkeley Lab found similar results, with a premium of 3.5% when solar panels were included. These findings are encouraging, but they don’t apply to all homes.
The increase in resale value of solar energy systems is also increasing. According to a recent study by Zillow, a home with solar panels sold for $9,274 more than a home without solar. While this increase is lower than the median sales price in California, it is still worth noting that it represents a substantial premium for many homeowners. Additionally, the value of a solar-powered home has increased significantly since installation, according to Zillow’s study.