Residential solar panels are one of the most accessible options for making a big environmental impact in your area. From reducing your energy bill to decreasing carbon emissions associated with energy production, solar panels have a lot to contribute to the average homeowner. However, most homeowners want to know whether installing solar panels will impact their taxes, increase their selling value, and more. Knowing the answers to these questions is part of making an informed decision about whether solar energy is right for you.
Solar panels do impact a home’s value, and in a positive way! Learn how solar panels can increase your home’s resale value by decreasing energy bills, making energy more accessible, and even demonstrating the quality of the home in subconscious ways.
How Residential Solar Panels Impact Home Value
For many homeowners, value is a main factor in the relationship between solar and the home market. In short, yes, solar panels typically increase home value. As with most statistics, fluctuations will exist, particularly based on geographic location. Research indicates that most homeowners can see a 7.7% increase in sales price with solar panels.
In areas with a higher number of sunlight days or on homes that are especially suitable for rooftop solar, this number can be closer to 7% or even 9%. Homebuyers in some areas are not only willing to spend more on homes that have solar panels; many also actively seek them out.
These buyers consider solar panels to be an advantage during the consideration phase, recognizing installed panels as a cost savings instead of having to install them later. The presence of panels can also indicate something of the seller’s personal values, which may make the buyer more trusting of the property.
Homeowners who want to reap the benefits of increased home value often fear that this increase in value is offset by higher property taxes, since their property’s value went up. However, many locations (including Maryland) do not factor the value of the solar array into property tax calculations.
Having solar panels impacts home value in multiple ways. Some advantages include:
- Lower utility bills – One of the most obvious benefits of solar panels is the ability to lower monthly energy bills. This is a benefit not only for the current homeowners, but also prospective new owners, who can also factor in those savings. As a result, they may be more willing to pay a little more upfront for the long-term benefit of reduced energy bills.
- Property tax – Many locations do not increase a home’s property taxes arising from the added value of a solar array. Because of this incentive, buyers can view solar panels as a free “plus” that will not raise their future bills.
- Ethical impression – Solar panels contribute many tangible benefits, but some of their appeal comes from more conceptual benefits. Buyers will pay more for homes owned by individuals whom they perceive to be good, responsible owners.
- Maintenance history – Someone who has installed solar panels is typically someone who is thoughtful about what is best for their home. Seeing solar panels can make buyers feel more confident about the quality of their purchase, especially the parts they cannot see, such as the plumbing and HVAC systems.
- Roof protection – Solar panels are installed directly on roofs, but contrary to some myths, they do not damage the roof. In fact, having a solar array covering the roofing material shields it from degradation due to UV exposure and the elements, prolonging its life.
- Durability – Those looking for a new home often consider the state of the roof because it is one of the most expensive areas to repair. By seeing solar panels, they can rest assured that not only is the roof in good condition (because it was compatible with panels) but that it should last.
- Complete system – Homes with a solar array may see higher sales prices than homes without. To further maximize this value, consider adding batteries, monitoring functions, and other additions.
Reap the Benefits of Solar Now and in the Future
Solar panels are a smart option for anyone looking to embrace environmental responsibility and lower energy bills. Installing solar panels can also provide additional benefits such as increasing the home’s value and boosting the sale price in the future. Contact Energy Select to learn more about how solar panels can work for your home, both now and in the future.