Solar Panels for Home - How does it Affect your Property Value?
Posted on April 26 2019
Solar panels for home are great! Energy generated via solar panels is absolutely clean and green, and this is a much-needed friend to today's environment which is constantly facing threats from global warming and other different kinds of pollution.
Solar Panels for Home. via solaeenergygroup
How does Solar Energy System affect your Property Value?
Although solar panels for home will generate free and clean energy for you but does it really affect your property value? The short answer is - Yes, it does. Moving on to the next question, which I'm sure, comes to your mind too, do solar panels for home pay off? This depends on many different factors including (but not limited to) the cost of electrical energy in your region, amount of sunlight you get daily, your house's roof structure and direction, and the overall impact on your house value after installing PV cells.
Over the last few years, due to the decrease in the price for solar panels, advancements in technology and the feasibility of installing solar panels for home, it has led to a rise in the number of people opting for solar panel system on their property. In 2018, around 314,600 houses in the USA installed solar panels on their property, which is a growth of about 7% as compared to 2017. This figure excludes any commercial-scale solar plants. Overall, the USA added 10.6 gigawatts of solar power in their grid, which is ultimately reducing the dependency on fossil fuels and a huge step forward towards a green environment.
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An Increase of 4.1% on Property Value in the USA
In the USA, an overall price increase of 4.1% of the property value was calculated by a recent study carried out by Zillow. That is about $9,000 increase on a median-valued property at around $220,000 House with solar panels and without were studied and regional analysis shows that in New York property values rose about 5.4% while in Los Angeles solar panels installing resulted in a price hike of about 3.4%.
This increase of 4.1% (on avg. in the USA) is a significant amount. Although it is unlikely that this alone will return all your investment on solar panels, however, you can still get back a big portion of your investment back on it. It is worth noting that personal preference of home buyers matter vastly too as about 80% of potential buyers considered energy-efficient properties to be a factor when they look for houses to buy. For the year 2019, Energy Sage estimated that for an average home (before tax credit) the initial cost of investment in a home solar system is around $18,300, which after tax credits drops to around $12,810. In the future, this cost is expected to decrease further as new technology is bringing the cost of solar panels for home and its installation to lower levels every year.
Other Factors that matter when considering ROI on Solar Energy Systems
Whether solar panels for home is worth the cost or not; this can become a difficult decision, as the Return on Investment (ROI) largely depends on the increase in your property value, and other factors that contribute to ROI are the price of electricity, amount of sunshine daily in your locality, and design and structure of your house. A more detailed analysis can be found here. You can also look into Google’s Project Sunroof which helps determine some details for you; simply put your address in the search bar and get a general idea about solar panels for home.
Solar Panels on the roof of a house. via news.stanford
Some More Facts and Figures
Following are some additional facts and figure that are sure to help you make a great decision when you are considering solar panels for home. All these facts are taken from SEIA.
1. In the USA, in the year 2018, the solar market installed 10.6 gigawatts of solar energy to the grid system, making it the 3rd year in a row of 2 digit power addition from PV cells. In the 4th quarter alone of 2018, the solar industry added 4.2 gig-watt of power to the system, the second largest figure ever in the history of the country. This illustrates the increasing trend of solar energy expansion in the country.
2. In 2018, around 29% of all electric energy added to the system was from solar panels for home. Making it the sixth year in a row where solar energy has been amongst the top 2 addition to electrical energy in the country.
3. Residential solar power systems had a massive increase of 7% in 2018 – this translates to additional PV cells in about 324,000 homes in the USA.
4. An estimate from SEIA calculates that the solar market will expand more than double in the next half-decade. This means an additional 74 giga-watt new solar energy into the system by 2024.