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Solar Panels and Your Home’s Value

You know that dependency on fossil fuels is a financial and environmental mistake. You want to save some a little money and help to save the environment at the same time. Solar panels is an easy way to do both of those things.

Cost: Solar panels cost, on average, $36,000 to install but Federal tax credits make the actual cost to homeowners closer to $21,000. The average homeowner will save about $200 per month or $2400 per year by switching to solar panels.


But how do solar panels affect the way buyers see your home? Is your home worth more or less after you install solar panels?

Comparative Pricing: Homes with solar panels are likely to be valued 3-4%  higher than similar homes in the same neighborhood without solar panels. For every $1 saved per year in energy costs, the value added is between $4 and $25, depending on local factors.

In a home that saves $200 per month because of solar panels, the home will be valued between $9,600 and $60,000 more than a similar home without solar panels.

Another method of comparison is the estimate the each kilowatt of solar power installed results in a $5,911 increase in value. Homes typically have up to 5 kilowatts of solar power.

Time on Market: Homes with solar panels will sell faster than similar homes in the same neighborhood unless the solar panels reduce curb appeal. Buyers understand the appeal of saving money on their energy costs and are more likely to choose an energy efficient home over a more costly option.

Curb Appeal:uglysolarpanels

Buyers don’t want to see solar panels. Solar panels on the front of the home may reduce curb appeal so much that the entire additional home value is completely offset. Homes with unsightly solar panels take longer to sell and may sell for less than similar homes in the same neighborhood.

Solar panels can be installed in a more aesthetically pleasing manner. Solar panels that follow the roof line and are continuous rather than isolated are more appealing to buyers. Homeowners who are installing solar panels can be involved in the planning phase to ensure that the design doesn’t detract from the home’s appeal.

So what’s a homeowner to do?

When you’re planning to convert to solar power, be sure to use a contractor that understands the importance of aesthetics to your home. Stay involved in the design process and you’ll find yourself effortlessly adding thousands more to your home’s value!

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