Written by Davey Newlove and Jason Peterson
Solar panels are a great source of renewable energy. They help customers reduce their carbon footprint along with financial benefits. The upfront cost of installing solar on your home can be daunting, but the long term payoff is quite rewarding. Not only are customers paying lower electric bills, but they also help increase the property value where they are installed. If you have a home with solar panels on it, your home may sell even more quickly as well. Let’s take a deeper look at how solar increases your property value.
How does Solar Increase Property Value?
According to a study by the National Renewable Energy Laboratory (NREL), for every $1 you save on your power bill your property value increases by $20. For example, a solar system that saves $300 per year would increase the property value by $6,000. The demand for properties with solar keep reaching new heights every year. The is due to home buyers becoming more environmentally conscious while also trying to find ways to save money. This demand often increases the value of properties with solar installed. In a report published by Zillow, homes with solar energy sold for an average of 4.1% more than homes without solar. This value can vary by region to region, but this added an average of almost $10,000 to home values across the country.
Factors Influencing Solar’s Added Property Value
There are a few factors that influence the added value of solar to your property. The biggest factor at play is location. States that generally get more sunshine have properties with solar in higher demand than in states that don’t get as much sun. For example, California is going to have a higher demand for properties with solar than Washington state. Higher demand means higher value. Local utility rates also play a factor in the added property value of solar. If you live in an area with low utility rates, the appeal of adding solar diminishes as solar would not save customers as much money. The frequency of power outages can also play a factor in deciding to go solar. Relying on power you generate to keep the lights on is very appealing to customers who frequently manage blackouts.
How Does Solar Influence Property Taxes?
Adding solar panels to your home increases your property value which then increases your property tax. According to Solar Energy Industries Association (SEIA), there are 36 states that offer property tax exemptions for solar energy. Tax exemptions like this make it more economically feasible to install solar on your property. This tax exemption applies for both residential and commercial installations. This solar policy guide can help you find out what tax exemptions for solar your state has.
Maximizing Your Investment in Solar
There are a number of ways that customers can maximize in their investment in solar. Choosing the best solar technology can help raise your property value and potentially increase the property selling price even higher. Choosing to invest in a high-quality system with panels that have the maximum efficiency is a wise choice. If you have the opportunity, enroll in a net-metering program. This would allow you to sell surplus energy back to the grid for credits on your utility bills. If you invest in a solar battery, you can live more off-grid which would even further decrease your utility bill. If you choose to remain on the grid, your battery can offset periods of high electricity rates which further increases your savings. There are also solar tax credits and rebates that anyone who purchases a solar system can take advantage of.
Working with JSunPV adds extra value to your solar investment by providing specialized solar tax credits and consultation. Our business partnership with RETE helps customers understand their tax situation. With the use of industry leading financial tools and processes, customers understand and receive specialized forms to maximize their savings and lower their ROI (return on investment).
If you are ready to make the investment in solar energy and increase your property value, contact the solar experts at JSunPV to get started on your project today!