Solar panels and house value: How solar panels impact selling price of your property

Solar panels boost property value, ROI exceeds 200-300%. Energy efficiency, green trend drive sales.

Solar panels have turned into a low-risk long-term loan with an ROI that goes over 200-300%. Even if you decide to sell a house in the future, a PV system is going to pay off. How does it work and what are the reasons for solar houses selling so well? In this article, we’ll talk about how solar panels impact the selling price of your property.

Financial benefits of solar panels: Steady payback

Why do people install solar panels to begin with? How exactly do they save money and how well do they pay off? Let’s consider the savings you get from a PV system.

From lower bills to SRECs

When we think about the advantages of having solar panels on your roof, the first big perk is saving on your bills. Instead of buying electricity from the grid during the day, you make and use your own. In 2023, the average U.S. electric bill was around $140-$150. If your solar system covers all your home's energy needs, you could save about $1,500-$1,800 every year.

Net metering which is a policy related to selling your energy into the grid, helps eliminate the remains of your energy bill. On average, about 20-40% of the solar system’s production goes into the grid. In return, the utility credits you for sold kilowatt-hours and lowers your bill for night usage and times when a solar system doesn’t produce enough. Homeowners in some of the northeast states have an option to sell Solar Renewable Certificates (SRECs). One SREC is granted for 1 Megawatt-hour of generated electricity. In New Jersey, it is valued at a little over $200 in 2024.

Return on Investment (ROI)

A solar system in the US might cost anywhere from $10,000 to $20,000. Your savings from it primarily depend on how much your state charges for electricity. The higher the rates, the more money you save, and the faster your solar system becomes profitable. Even in places like New York and Connecticut, where it's often cloudy, solar panels still pay off well because of the high electricity prices.

On average, it takes 6-8 years to recover the cost of a solar system in the U.S. However, the payback of a solar system in Hawaii might reach 4-5 years whereas a PV system in Utah takes over a decade to pay for itself.

Increased Home Value

What if you want to sell your house in the future? Having a solar system generally makes your home more valuable and sought after. According to Zillow, a house with solar panels can sell for about 4% more than one without. Considering the average cost of a house in the U.S. in 2024 is $500,000, adding solar panels could increase its value by around $10,000-$20,000. The actual boost may vary depending on the condition of your panels and roof. Still, once you sell a house, you basically get the money you spent on it back.

Real estate market trends: Solar houses on the rise

Rising electricity costs and the course for conscious energy usage make solar panels a desired home upgrade. Let’s focus on how solar panels increase the price of homes, why it happens, and why solar houses sell faster than normal.

Energy efficiency score competition

Property buyers prefer homes that come with preinstalled clean energy generators. Homes equipped with solar panels sell 20% faster than comparable non-solar homes in California, according to experts from the National Renewable Energy Laboratory (NREL).

One significant reason is that solar panels enhance the energy efficiency of a home which can be measured by the Home Energy Rating System (HERS). This system assigns a score to houses on a scale from 0 to 150, with lower scores indicating higher energy efficiency. Typically, a resale house might have a score around 130, while a new one could score around 100.

The HERS rating directly affects the house's selling price, with lower-scoring homes being 3-5% more expensive and selling 2.7% more frequently. Buyers of HERS-rated homes also tend to have better mortgage profiles. To enhance the HERS score and potentially increase future resale value, homeowners are advised to conduct a home energy audit and consider energy-efficient upgrades, including the installation of solar panels.

Some governments in Europe mandate homeowners to enhance the energy efficiency of their houses through measures like insulation and upgrades like solar systems. Similar regulations might be introduced in the US in the future, making properties with clean energy generators more attractive to buyers.

Course for green future and energy-efficient design

Another reason for the appeal of homes with PV systems is the environmental consciousness of potential buyers. Solar panels serve as clean electricity generators, producing no carbon emissions, odor, or noise. In an era where climate change is a growing concern, people are increasingly inclined to choose green energy options to contribute to the fight against global warming.

In the past, people were concerned about how solar panels impacted the appearance of houses. The design of PV modules has significantly improved over the last decades: monocrystalline solar panels with a sleek black appearance replaced the older blue-ish polycrystalline panels. Many companies offer completely black solar panels that blend well with a house's look and sometimes even make it look better.

This content was first published by KISS PR Brand Story. Read here >> Solar panels and house value: How solar panels impact selling price of your property

Release ID: 925290