Installing solar panels is one of the best ways to increase the value of your home. A report released by the California Energy Commission revealed that:
- 91% of Californians see energy efficiency as an important factor when considering the purchase of a new home
- 70% said the cost of the monthly electric bill was an important factor in their decision to buy a new home
- 81% believe that a home solar system allows homeowners to start saving on monthly living costs immediately
In today’s economy, most people are looking for more bang for their buck when purchasing a new home. And according to the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy, homes with solar “sell at up to twice the rate of their conventional counterparts.”
A good rule of thumb that real estate appraisers abide by is: for every $1 of electricity offset through solar, the home value is increased by $20. At install, your home instantly gains an increase of the net cost of the system (after rebates). And if you save around $1,600 per year on electricity with solar, your home value would increase about $32,000.
But it doesn’t stop there! Solar power systems also continue to increase in value over time. So as electricity rates increase, your savings will also increase, making your system more valuable as time goes on.
Another thing to note is that even though the value of the home increases, your property taxes cannot be increased (see Section 73 of California’s Revenue and Taxation Code).
Solar is definitely a valuable commodity in today’s market and its value only increases over time. There aren’t too many good investments out there that not only save money while increasing home value. And it’s also good for the planet!