Not only does solar save you money each month, it also adds to the resale value of your home, without adding to the value for property taxes purposes.
If you purchase a solar panel system, there are a few ways you can determine the value that solar adds to your home. According to a study conducted by The Lawrence Berkeley National Laboratory, homes with solar sold for a higher dollar amount than houses without it. The study found that each watt of solar added an average of $4 to the home’s value in California and an average of $3/watt elsewhere. For a home in the Coachella Valley with a 10,000W system, the added value would equate to $40,000. Another study published in the Appraisal Journal, the nation’s largest professional association of real estate appraisers, found similar results.
Another way to calculate the value of your solar panel system is by determining the amount of time left on your warranty. To do this, take your original purchase price and divide it by 25 (or the number of years guaranteed by your warranty provider) to get the cost-per-year under full warranty. Then, take that number and multiply it by the number of years remaining.
Homes with Solar Tend to Sell Faster and for More
An earlier study by the National Renewable Energy Laboratory (NREL) looked at high-performance homes in California and found that homes with PV systems (photovoltaic systems) sold 20% faster (and for 17% more) across several subdivisions built by different California builders.
Debunked Myths About Solar Panel Systems Decreasing the Value of a House
The NREL’s study of several hundred home sales also revealed that if a solar system was already installed and factored into the price, buyers were more likely to choose that house over others without solar. Other interesting findings include:
- The aesthetics of a PV system were not identified as an obstacle to purchasing
- The resale value was not damaged by the presence of a solar system
In addition, the value of the solar system is not taken into account when determining your home’s value for the purpose of property taxes.
Obtain a Valuation on Your Solar System Before Selling Your Home
To demonstrate the value of your system during the home appraisal process, you should have your original paperwork showing the projected savings over the life of the system. You can also have an inspection of your system done by RenovaPLUS so prospective buyers have an objective third-party report on the condition and production of the system.
Have more questions? Call Renova Energy Today! We are ready to provide an accurate valuation of your solar panel system to ensure your home’s value is not compromised during resale.