Selling a Home with a Solar Energy System
In addition to the many benefits that solar adds to a home, increased property value can be found among them. Let’s face it – the home you’re in now might not be the home that you live in for the next 25 or more years. With solar system lasting at least 25 years (and some system functioning even after 40 years) you may wonder: what happens if I move? You may relocate for work or choose to downsize. Should you still consider solar if you aren’t sure you’ll be in your home forever? YES! Do not let a future move keep you from living your renewable energy dreams now.
As solar becomes more mainstream, real estate agents, appraisers and homeowners are looking to know more about what a solar energy system does to the value of a home. We’re glad others are asking this question too, which has resulted in several studies published on the topic.
- A recent report by Zillow shows that on a national average, homes with solar sold for 4.1% more than homes without solar. So by investing in solar, you’re both saving money now AND increasing the resale value of your home.
- The Berkeley National Laboratory & U.S Energy department (Appraising Into The Sun) found “strong, appraisal-based evidence of PV premiums in each of seven market areas in six states.“
- The Berkeley National Laboratory (Exploring California PV Home Premiums) concludes that “each 1-kW increase in size equates to a $5,911 higher Premium”
Much of the research to date has been done on the west coast, a leader in the solar energy movement. As the burgeoning solar movement continues, we will see more data to analyze in the Midwest. At Third Sun Solar we have known customers to purchase and sell homes with our solar systems installed, and all parties have been happy with the results.
Return on Investment
Solar provides more to a home purchase than any other home improvement:
- The ROI is much higher for the purchasing homeowner, who benefits from reduced electric bills
- There is environmental ROI seen in the reduction of carbon emissions
- The ROI on long lasting solar equipment increases as traditional electric costs rise
- Existing solar installations can be grandfathered into older and more lucrative Solar Renewable Energy Credit (SREC) plans that are no longer available. In some cases, picking a home with solar can occasionally get your buyers even more SREC savings than the current pricing.
Solar Stands Out
Solar can help you stand out in a crowded market. A solar energy array is an important marketing piece. You will attract the attention of home buyers interested in solar and renewable energy. Make it pop! With a national increase of attention on renewable energy – solar is quite popular. Highlight the benefits. And be prepared to answer any questions potential buyers might ask. Who installed the solar system? What is the size of the solar system? What is the warranty period?
Even if you have a portion of a solar loan to pay off, the premium price you get on your home due to the solar array could offset that cost & potentially create a profit.