As a homeowner, you probably have a long list of improvements you’d like to make to your home. If you want to do away with your electric bill and reduce your carbon footprint while at it, you might have considered installing rooftop solar panels. And that’s not all. Like any other home improvement project, adding solar panels can also significantly boost your home’s value.
Plenty of studies show that when looking at homes with equal comparables, solar panels will add a substantial amount to the value of a home. According to an article in Realtor magazine, adding solar to your home will lead to a notable 56% increase in resale value. The article cites a recent study by Porch.com, which shows that homes with rooftop solar panels cost $680,000 —that’s 48% more than the average home in a given area.
Why Solar Panels Increase the Value of Your Home
How Much Does Solar Boost the Value of Your Home?
How much will the market value of your home increase after installing a solar energy system? There’s not a single definitive answer to the question of the exact increment in the value of your home due to solar installation. While all the studies we’ve examined agree that solar increases your home’s resale value, there’s no consensus by exactly how much.
Different studies quote different figures. In addition to the Porch.com study, other notable studies are examining the increase in home market value due to solar panels.
Lawrence Berkeley Laboratory Study, 2015
A 2015 Berkeley lab study shows that solar panels increase the value of your home by $4 per watt. Therefore, a 6.6kW photovoltaic system will increase the value of your home by $26,400. The Berkeley study was comprehensive, looking at 22,812 homes across eight states. Going by this study, installing a rooftop solar panel system is one of the best things you can do vis-à-vis Return on Investment (ROI).
Zillow Study, 2019
The study by the website Zillow works with percentages. According to the study, the median market for a solar-panelled home is 4.1% higher than the average home. The sale premium varies significantly by region/market. In places where home prices are very high, installing a PV system will considerably increase your home’s value.
- Location. Solar-powered homes tend to be more attractive in specific markets. For example, according to the Porch.com study, solar-panelled homes in Pensacola, FL, could cost 3.5 times the average home price in the area.
- Age of the PV system. How old is your PV system? The age of your rooftop solar panels and inverter will also affect the value of your home. Older, inefficient models aren’t quite as appealing. PV systems are more valuable the newer they are.
- Solar system ownership status. If your home has solar panels on it, but you don’t actually own the PV system because of a solar lease, the value of your home will not be much higher.