At this point, many of us are already well aware of the benefits of solar panels. They can help you dramatically reduce your carbon footprint, provide energy self-sufficiency, and allow you to see dramatically cheaper energy bills for decades to come. But what about the value of solar energy to your home? After all, your home is your most important asset.
Given the near-daily claims from the solar industry that panels can dramatically improve your energy and your finances, it would make sense for solar to improve your home’s appraisal value, right? Let’s dig a little deeper and see how solar panels can actually affect the resale value of your home.
- Do Solar Panels Increase House Prices – The Numbers
First, it’s worth looking at whether investing in the best solar company to install panels will actually increase the value of your home. In a nutshell, the answer is pretty much a resounding “yes”. According to a massive survey of home values across the US by the realtor website Zillow, solar panels will add an average of 4.1% to the resale price of your average American house.
If your home is the average price nationwide, this means that simply slapping some solar panels on your roof would, in theory, increase its value by around $9,200. Not too shabby.
- Greater ROI in Particular States
Like all real estate trends, the picture is different depending on where exactly you look. One thing that is clear is that the benefits of solar-powered homes are much greater in certain US states. These are states where the “solar premium”, i.e. the amount of extra home value-added from solar panels, is higher. The highest solar premium in the US goes to New Jersey, where solar panels add 9.9% to the resale value of an average home, equivalent to $32,000.
Other states include Pennsylvania, Louisiana, and North Carolina, where solar panels have a huge impact on home prices. If you live in North Carolina and want to see your home’s value grow, you’ll need the best solar company in the state for the job. Click here to see solar companies near you that can help you boost your home’s value.
- Cost-Benefit Analysis
Even if you have the best solar installers for the best possible price, it is still important to run a cost-benefit analysis before you proceed with the installation. Remember, solar panels can cost tens of thousands of dollars to purchase and install. Therefore, you might want to be absolutely sure that the return on your investment will be worth it.
One thing to remember is that the US Government offers a Federal Tax Credit for all solar panel installations, which could reduce your overall bill to just a fraction of the original cost. Make sure to break out the calculator and figure out exactly what your solar investment will cost you.
Make Informed Real Estate Decisions in 2021
Understanding the benefits of solar panels on your home is just one simple way to make more informed decisions about your most important asset – your home. For more insider real estate tips that you can bank on, we’ve got you covered. Make sure to consuklt our dedicated Real Estate section to learn more.