More homeowners than ever are considering adding solar panels to their abodes. As of 2019, nearly half of them were weighing up the option of switching their homes to the green energy source.
There are plenty of reasons why you might be one of those homeowners yourself. Solar energy is eco-friendly, and it can save you on your utility bills. But you’ve heard that solar panels can boost your home’s value, too.
Is it true? Will you find solar panels on the list of smart investments for your property? Here’s everything you need to know.
Solar Panels Make Your Home More Attractive to Buyers
Imagine you’re comparing two houses to buy. They’ve got all of the same features, except for one of the properties has solar panels on the roof. Which one would you rather purchase?
If you choose the one with Sunny Energy on its roof, well, you’re not alone. Potential buyers will be drawn to the abode with low- or no-cost energy built into its structure. Imagine slashing or completely eradicating a bill just by buying a particular house: solar panels make that a possibility.
So, having a solar energy system installed will make your property more attractive to buyers down the line. And, in many cases, that means they will be happy to pay top dollar to buy your home.
Solar Panels Add Tangible Home Value
It’s not just about making your house more attractive to buyers, though. They’re willing to pay more for the promise of solar energy.
A few studies have backed up this statement. One printed in The Appraisal Journal revealed that, for every $1 saved in annual energy costs, the home’s value increased by $20.
So, let’s say solar panels eradicated monthly electric bills that would have cost $150. Multiply $150 x 12 months x $20, and you’ll find that a $150 reduction per month adds $36,000 in value to the property.
Another study had similar findings. It revealed that for every kilowatt of solar energy added, your home’s value jumps by $5,000.
Is It Worth the Investment Cost?
Now, you do have to weigh this against installation costs to make sure it’s a cost-effective addition to your home. But still, most homeowners find it’s worth the initial price because it adds so much value.
Most solar energy systems cost $3,600 per kilowatt to install. You’ll remember that a home’s value increases by $5,000 per kilowatt that it produces. So, that’s already a gain of $1,400 per kilowatt.
You can also consider the federal tax credit that comes with solar energy. You can get up to 26 percent of your money back if you write off the panels during tax season.
Solar Panels Are a Smart Investment
Ultimately, it’s up to you to decide if solar panels are right for your home. But you can’t deny that they’re a smart investment that will add value to your property. And they help the environment by decreasing your carbon footprint, too — it’s a win-win situation.
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