More and more studies are proving that a solar panel system can increase the value of your home – which is a great added value beyond the saving on electricity.
Researchers at the Lawrence Berkeley National Laboratory have come to the conclusion that homes with solar panels have sold for a higher price than those without.
The Berkeley study focused on home sales with and without the solar systems in California. The basic conclusion of their study states “the analysis finds strong evidence that California homes with PV systems have sold for a premium over comparable homes without PV systems.” .
This added bonus was anywhere from $3.90 to $6.40 per watt of capacity, but the most common result ended up being just about $5.50 per watt. This, the study said, corresponds to a home sales price premium of approximately $17,000 for a relatively new 3,100-watt PV system (the average size of PV systems in the study).
Furthermore, according to the study, these average sales price premiums appear to be comparable to the investment that homeowners have made to install PV systems in California, which from 2001 through 2009 averaged approximately $5/watt.
Let’s take these findings from California and apply them to the entire nation. With those findings applied to the rest of the United States, approximately 139,000 homeowners will be collecting a premium after selling their home – if they have had residential solar energy panels installed to their home. This proves once again that solar power systems are a fantastic investment in your home and will become of great value whether you intend to stay in your home or sell it.
Another study done by The National Bureau of Economic Research (NBER) released their findings, discovering that solar panels added between 3 and 4 percent value to a home. This result coincides with the Berkeley findings, once again proving the worth and advantages the system can bring to a home’s value.
Intriguingly enough, this percentage has noticeable increased when research was conducted in communities with a high ratio of college graduates and hybrid vehicle owners. The Appraisal Journal states, “A home's value increases roughly $20 for every $1 decrease in energy costs. So, if the solar panels save you $600 a year, the home's value may increase by $12,000.”
Why Are Certain Areas More Solar Efficient Than Others?
The professors that conducted the Lawrence Berkeley National Laboratory study didn’t look just at homes with solar panels – they dug deeper looked into the kind of people that lived in solar-efficient homes. In addition, the professors looked at the solar consumer– examining what types of people live in solar homes.
The neighborhoods with more solar panels installed consisted of wealthier and more highly educated homeowners – the homes themselves were also larger than average.
The homes also coincidentally consisted of individuals that contributed to the environment as a whole – saving energy and recycling were top priorities in the households.
The National Bureau of Economic Research’s study compared prices in San Diego and Sacramento, California. The effectiveness of the panels was measured, and the homes studied had panels that primarily generated electricity.
"Our evidence suggests that similar to other home investments such as a new kitchen, solar installation bundles both investment value and consumption value", conclude the authors, who are California-based economists. The "investment value" increases the sale price of a home, and the "consumption value" is the benefit of having an environmentally friendly energy source.
The NBER also agreed with the Berkeley study that neighborhoods that favored a “greener” brand of products, were also more receptive to solar panels as a more desirable commodity. "Some households may take pride in knowing that they are producers of 'green' electricity, and 'warm glow' may triumph over present discounted value calculations in determining a household's install choice," the study found.
Specifically in the San Diego area, the added value of solar panels to a home’s value was around $22,554, which, with state and federal exemptions included, is approximately the cost of owning and installing solar panels to one’s home. "This comparison suggests that, on average, homeowners fully recover their costs of installing solar panels upon sale of the property," the study reported.
To learn more about how your home value increase with solar, contact us and receive your free, no obligation FREE quote on a solar panel system.