BREAKING: 2022 New York State Solar Incentives Now Best In USA

Solar Increases Home Value

While lots of people switch to solar energy to decrease their carbon footprint and decrease their utility bills (especially in today’s costly day and age), many tend to forget that buying solar panels increases the property value of your home. Since the passing of the Inflation Reduction Act which extended the 30% federal tax credit for residential solar installations through 2034, home buyers are likely to see solar systems on prospective homes (3).

 

According to Zillow, buying solar panels increases the value of your home by roughly 4.1% on average. This could mean up to $10,000 of increased value on the home (1). But how exactly does solar add value to your home? It’s all in the energy savings. According to the National Renewable Energy Laboratory (NREL), every dollar saved on energy through solar increases home value by $20 (5).

In addition, as the world shifts towards an environmentally friendly mindset, having solar panels on your home can increase the appeal to potential buyers. According to Sarah Mikhitarian, a senior economist for Zillow, more than 80% of buyers say that energy-efficient features are important to them when selecting a home (1). Plus, like any other investment, the value of solar appreciates over time and becomes an asset. 

Make no mistake: solar increases the value of your home if the panels are purchased, not leased (PPA). Leasing solar panels will not add value in any way because they are property of a third party, which is the company supplying the solar panels (2). Thus, if you want solar panels to add value to your home, you can buy them so they belong to you. Leased panels can still give you lower utility bills, but you miss out on more financial incentives through not owning them. In fact, US electricity bills in August  jumped the most since 1981 (4). Since the winter months are around the corner, we anticipate higher demand for natural gas and oil, which is likely to increase their prices. Increased prices will lead to higher utility bills for the average American, so switching to solar can help you take back control over your utility bill and save money in the long run.

Thus, to get the most financial benefits from going solar, buying your solar panels instead of leasing them provides you with an opportunity to add value to your home. Especially in today’s volatile real estate market, having some certainty in your home’s valuation can give you peace of mind. Plus, owning solar panels helps you take back control of your energy bills from utility companies. Get in touch with us about options for you!