DOES SOLAR ENERGY ADD VALUE TO YOUR HOME?
To answer this question, we must rely on several different studies that have been conducted in recent years all over the country for the sole purpose of determining the impact a solar system has on the value of real estate. A new study from the Lawrence Berkeley National Lab (LBL), supports many other studies that have determined that installing solar panels can significantly increase your property’s value. This study investigated home pricing trends by analyzing the sales of over 20,000 homes across the country. The analysis of home sales showed that on average the premium paid for homes with solar energy was significantly more than those without solar panels indicating that installing a solar system to a residential property adds real value to the home.
The report, titled “Selling into the sun: Price premium analysis of a multi-state dataset of solar homes”, supports compounding research which concludes that homes with solar panels sell for significantly more than those without and on average the increase in value offsets 100% of the cost to install a solar system in your home. Having said that, how do you determine if solar power is right for you. All the data is conclusive, adding solar panels and solar power to a private residence is a smart investment. The LBL study reaffirms other similar studies that indicate homes with solar panels will benefit from what they call the “solar premium” when they are sold because most buyers are willing to pay more for a home with solar panels than they would pay for a home without a solar system.
How exactly does solar power increase the value of your home? Well, nationally the average solar system generates 5 kilowatts (kW) of electricity which offers 5,000 watts of power and adds about $4.00 per watt to the value of a home. Therefore, a home with solar should expect to sell for $20,000.00 more than a home without solar. What is even more surprising about these figures is the technology continues to improve and the cost of solar continues to drop exponentially year over year driving down the total cost of a new solar system very close to the $20,000.00 added to the value of a home with an existing solar system not including the generous 30% Federal tax incentive in place for anyone who installs a solar system in their home. Competition also helps to drive down the overall cost of solar and there are a number of companies in and around the Charleston South Carolina area that specialize in manufacturing and installing solar systems. It is very important that you as a consumer do your homework and investigate what company and system will work best for you and your budget.
The bottom line is that regardless of what political party you belong to or what ideology you subscribe to regarding “global warming” or “climate change” or how you feel about your carbon footprint, not only does solar power have a very positive impact on our environment, more and more studies confirm that solar power makes good economic cents (pun intended) and offers a very good return on your investment. Without selling your home, depending on your power company’s solar energy policy, the average return on your solar investment is just under 10 years and not only could it forever eliminate your monthly power bill, you could actually get paid by your electric company for unused power that your system generates, allowing them to sell the unused power generated by your system to other paying consumers to utilize.
At Rick and Jim Properties we take great pride in staying informed about the products and trends that impact the value of real estate. Please contact us today at 843-469-6570 and let us help you determine the value of your property and what makes sense for you and your situation as it relates to improvements or buying and selling real estate in today’s market.