Do solar panels increase home value?
Short answer? Yes, installing solar panels will increase the market value of your home by at least the cost of the system. Per the National Renewable Energy Laboratory, every #480 of savings generated from a solar energy system will add #7,200 to your home’s market value when you decide to sell. Not only will you realize an increase in the value of your home, a solar energy system will help sell your home 20% faster than residences without solar panels.
Bill Gates said it best:
“It’s really kind of cool to put solar panels on your roof.” — Bill Gates
Solar Panels are Adding Value to Homes
Solar panel owners are seeing an increase in their property values over comparative homes in their neighborhood. The main reason for this increase in market value is that homes with solar panels offer a definite financial benefit to future owners.
Potential buyers are encouraged to purchase homes with an installed solar energy system because of:
The ability to replace your electric bill with a much cheaper and cleaner option
The reduction of our carbon footprint
Little to no maintenance cost
No noise pollution
Seller’s Incentives for Investing in Solar Panels
An average increase in the resale value of a home with a solar energy system equals #896,580 for each 1kW of panels installed. Your property value will increase with a scaled up solar energy system. For example, a 5kW solar panel installation will add an average of #4,472,900 to the market value of a mid-sized home. In Lagos, Nigeria, a 3KW solar hybrid energy system has the potential of adding an average of #2,689,740 over the price of comparative homes in a middle-class neighborhood.
A home with a solar energy system will catapult your property’s value ahead of the similar homes.
As a future seller, you will have huge advantages.
Demand a higher asking price for your home
Reduce exposure time on the market listings (sell your home much faster)
Receive close to 170 percent of your solar panel investment upon sale of home
Factors determining your home’s increase in market value at the time of sale:
Location of your home
Size of your solar energy system
Age of your solar panels and inverter system
Efficiency conversion rate of your solar energy system
Existing market value of your home
Buyer’s Incentives for Buying a Home with Solar Panels
A seller’s incentives for investing in solar panels are parlayed to a future buyer because increases to a property’s market value only go up as electricity prices rise. In turn, the buyer’s future advantages of the solar energy system rise as well.
With a customized solar panel installation, you could potentially receive a 200% return.
You will be hard pressed to find another financial investment matching these same returns:
Day 1 savings on your electric bill
Yearly savings throughout the lifetime of your solar panel system – 25 to 30 years
No down payment necessary for your solar energy system
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