INSTALLING SOLAR PANELS IS ONE OF THE BEST WAYS TO
INCREASE THE PROPERTY VALUE OF YOUR HOME
Homeowners often undertake home improvements to increase their property value and/or improve their quality of life. Very few think of solar panels. While some home improvements can greatly increase the value of your home, others do very little to impact it. For example, remodeling a kitchen is thought of as a home improvement with a very good return on investment. On the other hand, a swimming pool is a fun addition, but the value it brings to the property is greatly variable. The addition of a swimming pool may do little for a home’s resale value because of the additional costs and hassles associated with pool maintenance, including heating and filtering.
INSTALLING SOLAR PANELS
Installing solar panels is one of the best ways to increase your home value. Unlike many other home improvements, the addition of solar panels can help a house sell faster. Solar panels actually save the homeowner money by reducing electricity costs, and research shows that homeowners consider energy costs an important factor in their decision to buy a new home. In short solar power sells homes.
HOMES WITH SOLAR PANELS SELL FASTER
Homes with lower electricity bills also sell faster, spending less time on the market. Once again solar panels sell homes. According to the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy, having solar panels on a home means it will sell twice as fast as a home without solar panels. Why wouldn’t you want solar power?
Homes with Solar Power Have Higher Property Value. The electricity savings from solar panels on homes translates directly into increased home resale value. Once again solar panels save money.
The U.S. Department of Housing and Urban Development states that home values rise an average of $20 for every $1 reduction in annual electricity bills. Once again solar power saves money.
SOLAR POWER AGREEMENT
If you installed solar panels on your home through an agreement with a third-party, such as SunRun (SunRun not yet available in Fl), and decide to move before the end of your customer agreement, it’s easy to do so. Most homeowners who move choose to transfer their home solar power agreement to the new homeowner.
In this case, the new homeowner takes over the home solar panels agreement and pays the same low rate for home solar power. The new home buyers see the lower electricity rates, home solar panels system maintenance, and monitoring as advantages. Homeowners can also choose to purchase the solar panels & equipment at a depreciated cost at any time and sell it with their home.
The proof is in the numbers: According to Shea Homes, the home resale value of California solar power Homes increased 55% while the home resale value of houses without solar power increased only 45%.
WHY DO SOLAR PANELS MAKE YOUR HOME MORE VALUABLE?
91% of Californians see energy efficiency as an important factor when considering the purchase of a new home. 70% said the cost of the monthly electric bill was an important factor in their decision to buy a new home. 81% believe that a home solar power system allows homeowners to start saving on monthly living costs immediately.
According to the California Energy Commission’s brochure for Realtors, owning a solar power home makes “financial sense” and coupled with additional energy efficiency improvements, can “help to lower the homeowner’s utility costs up to 60% while protecting our environment.”
LOCATION AND TIMING ADVANTAGES
Home solar panels are a good way to meet the growing demand with the consumption of clean power, rather than fossil fuels.
The value of solar power is also tied to the timing and location of solar production. A working paper by Severin Borenstein, the Director of the University of California Energy Institute, argues that the timing of solar production can potentially increase the value of solar by 30 to 50%.
SOLAR POWER ON YOUR ROOF
Using solar power produced right on your roof avoids these transmission and distribution (T&D) losses.
SOLAR PANELS FOR YOUR HOME
The website for the U.S. Department of Housing and Urban Development states that energy saving improvements of solar panels increase the potential resale value of your house and help sell it more quickly because they “make your home more affordable to more people.” In addition, solar panels “attract attention in a competitive market,” while solar power creates “improvements which will actually save money.” You save money with solar.
AMOUNT OF SAVINGS
This means saving $1,000 per year in electricity costs can increase your home value by $20,000. The value of the home solar panels system itself increases over time, as well. As electricity prices continue to rise, your energy savings will also increase, making your home solar panels system more valuable. “One thing’s for sure,” states the USA Energy Guide, “when it comes time to move, solar panels will add to a home’s resale value, no matter where you live.” Solar power saves money.
CALIFORNIA ENERGY COMMISSION
All 257 solar power homes in one Clarum Homes development sold within a year of being put on the market — 2 years faster than planned. These homes were originally priced at $379-499,000 and were selling for as much as $600,000.
Research released by the California Energy Commission reveals that California home buyers want solar and energy efficient homes.
Do they know something that Florida homeowners do not?
By Melissa Dittmann Tracey, REALTOR® Magazine. Homeowners may write off solar panels as too costly (installation can cost upwards of $15,000), but a new study suggests that installing solar panels can pay off. Researchers find that solar panels not only save money on electricity bills, but also provide a boost to homeowners at resale, particularly when added to existing homes, according to a new study by Lawrence Berkeley National Laboratory. Homeowners not only are likely to recoup their investment from the installation, but even stand to make more at resale, the study finds. Researchers analyzed the sales of about 2,000 solar homes in California from 2000 through mid-2009 and compared the prices to those of 70,000 comparable homes that did not have solar panels. On average, solar panels added about $5.50 per watt to a home’s resale value. In other words, a home with a typical 3.1-kilowatt solar system stands to make an extra $17,000 above the cost of a comparable, nonsolar home. So today’s Earth Day, should we go celebrate by adding some solar panels?
NATIONAL DEMAND FOR ELECTRICITY
And the more electricity you use overall, the more you end up saving with home solar. According to the American Society of Civil Engineers, the national demand for electricity has grown 25% since 1990.
DEMAND FOR ENERGY PEAKS
Demand for energy peaks in the middle of the day, increasing the cost of electricity pulled from the grid. However, home solar power production also peaks in the middle of the day. And best of all, the production happens on your roof. Home solar panels generate electricity “disproportionately at times when electricity is most valuable…and at the location of the end-user.”
When you use traditional electricity, a percentage of the total electricity generated is lost because of the energy necessary to move the electricity from the production site to your home. Additional energy is lost as the voltage level changes from high to low as it moves from power plants to your home.
Since electricity is transmitted through power lines at very high voltage levels over long-distances, these levels must be lowered to a safer and more manageable level for your home. The U.S. Energy Information Administration reports that in 2007, 6.5% of the electricity generated was lost during this process – before it even reached the end user