Do Solar Panels Increase Property Value?
In short – yes! Studies have shown that solar panels and energy efficient homes have higher resale values than conventional homes.
Besides saving money on your electricity bill, another good reason to install solar panels is to increase the value of your home.
Even Zillow says so – a study from Zillow done in 2019 found that homes with solar panels sold for 4% more than those without panels. The image to the right shows the price premium of solar panels for various areas in the US. A price premium is the percentage difference between the value of a house with solar panels and the value of the house without them.
Energy Efficient Homes
Many other reports have outlined the value of green homes in general. For example, this study from the US Department of Energy Resources in the Berkeley Lab found that homes with solar panels are worth $4 more per watt than those without. This averages to about a $15,000 higher home value per house.
Another example is a study based in Austin, Texas on LEED certified houses. LEED certification is an energy efficiency standard. This study found a price premium of 6% for houses with solar panels. So, the homes they studied sold for 6% more because they were energy efficient.
A similar study done by Pearl Home found that homes that are Pearl Certified (aka energy efficient) had an average markup of 2% compared to less energy efficient homes.
These three studies came up with different price premiums for solar panels, but all still prove that buyers are willing to pay more for an energy efficient home!
Factors like regional incentives, the market for renewables, and local electricity prices affect how much a home will be sold for. Therefore, the exact percent premium you will receive for installing solar panels on your home will differ across regions. But overall, solar panels do increase the value of a home and are a great investment!
If you are concerned about what a potential buyer will think about the aesthetic of your solar panels, all-black modeled solar panels tend to be the most popular for their looks. You can read more about the role of aesthetics in our blog post.
Overall, increased property value is just another reason to invest in solar today! Contact us if you are interested in going solar.