Can Solar Panels Increase the Value of Your Home?
There is ample evidence that homeowners can boost equity and add value to their property with specific improvements. A new roof or security system, smart home technology and renovated kitchens and baths are among the most popular homebuyer wants. But, what about solar panels? Many call this a good investment just due to the utility savings, but can an owner also expect a reasonable return on that investment when the home is sold?
The simple answer is yes to both questions.
Immediate Savings and Future Return
Installing a residential solar array produces immediate results that have an effect on the pocketbook. Lower utility bills are the first financial result, and the "payback" benefit only increases with time. Because both panel prices and installation costs have fallen in recent years, solar panel owners today, in both the United States and Canada, can expect to recoup the original investment in as little as three and a half to five years. Long-term financing is readily available to owners who opt to purchase solar panels, but a variety of attractive leasing programs exist, with reasonable fixed monthly or quarterly payments and terms as long as 20 years. Some utility companies offer additional options for homeowners who wish to participate in green energy programs.
Going solar is a way to demonstrate a commitment to sustainability; for some homeowners that, in itself, is reason enough to install solar panels and to encourage energy suppliers to reduce reliance on fossil fuels. Most utility companies, however, "sweeten the deal" for homeowners through energy incentives known variously as "feed-in tariff" or FIT programs and newer net-metering programs that deduct the amount of power supplied by home solar panels from the homeowner's total billing.
The initial cost, as well as the value of solar panels, will vary somewhat from one province to another. Incentives and benefits are based not only on location and demand but also on climate, urban development, energy needs and other sources of energy, including wind farms, hydroelectric sources, and traditional fuels. Other factors will also affect a homeowner's decision to install solar panels: Tax implications, governmental restrictions, local costs and utility rate trends, allowable depreciation, and the length of time you expect to own the home.
The Sunny Side of Solar Panels
Some estimates place the resale value of solar panels at between three and four percent of total value. Other figures place a dollar value on panels of between $3,000 and $6,000 per kilowatt hour of generating capacity, meaning that an average roof installation of 3.1kilowatt hours could add between about $10,000 and $18,000 to the sales price of the home. Still other statistics confirm that eco-conscious buyers are only too willing to pay a premium for homes with rooftop solar panels and other green features. Real estate professionals attest that homes with solar panels and smart technology sell faster than comparable homes without such amenities
Whether you make a decision regarding solar panels primarily based on cost-saving potential or on philosophical and practical grounds, it's fair to say that positive financial return is a reasonable expectation for the future. Add to that the dollar savings each month for the years you live comfortably in the home, and both the investment value and the "consumptive" value should be well worth the initial outlay.