Do you know that there is a home improvement that can increase the value of your home by 43%? It’s rooftop solar. And when compared with other improvement-type investments, such as remodeling a bathroom (2% return) or kitchen (2% loss), it’s well worth investigating.
In January of this year, Lawrence Berkely Labs released the results of the largest study performed-to-date on the selling price of solar homes, entitled “Selling into the Sun”. Along with many well-known environmental benefits of going solar, the study demonstrates that the associated out-of-pocket costs can increase the value of your home at a rate of $4/watt. For instance, a typical Coachella Valley 10,000-watt system that costs $28,000 after the 30 percent Investment Tax Credit, can increase the value of your home by $40,000.
By installing solar not only do you increase the value of your home, you also save money on your energy bill and help improve the environment. However, there is a catch: the $4/watt value increase only applies if the property owner owns the system (unsecured, secured, and PACE loans, also apply). But, if a third party owns your system as with leases and PPA’s, the $4/watt valuation metric does not apply, although it can still make your home more attractive to a potential buyer as they will enjoy lower payments.
For more about this study, click on the link below.