Solar power has many incredible benefits. It provides clean, sustainable energy that is so vital for preserving the environment, and reversing global warming. But beyond that, solar energy has another lesser-known benefit every user should know about — it can increase the value of a home.
That’s right, solar energy is much more than just a fad. Not only does it make it more appealing to potential buyers, but it greatly affects property taxes. But how great is this impact? In this article, we will explore the relationship between solar energy and property value. We will also help you answer a very important question — how to find out the value of my solar-powered home.
Do Solar Panels Impact Property Value?
The answer to this question is a resounding yes. With environmental concerns reaching a fever pitch in recent years, sustainable energy has become more important than ever. Therefore, if you’re looking to sell a house, a solar-powered property is great for optics. But how big of a price increase are you looking at?
Well, recent research suggests that solar panels, on average, increase property value by as much as 4.1%. This is quite an impressive amount if you’re looking to get a good deal on your home. But beyond just real estate, solar energy impacts another aspect of homeownership — property taxes.
Normally, when you add something to your property, it increases your property taxes. However, certain states, like California, offer homeowners tax reductions for every solar panel they install. Through the Investment Tax Credit system, the state of California helps homeowners cover 26% of the cost of installing solar panels.
What’s more, the state offers tax exemptions to all homeowners who install solar panels on their property by 2024. So switching to solar energy is a win-win on all sides.
What Influences the Value of a Solar Powered Home?
While solar energy does add value to a home, the 4.1% increase is just an average. There are actually several factors that influence this number.
- Geographic location: Electrical bills vary greatly depending on the area. The more expensive electricity is, the more your solar panels are worth.
- Installation prices: If installing solar energy will put a dent in your wallet, then expect that dent to transfer to the value of your home.
- System output: The larger the system, the more energy it will generate. Thus, more power equals more value.
- System age and maintenance: The older your solar panel models are, the less they’re worth. This also applies to maintenance costs. If your solar system has difficult-to-replace parts, they won’t add much value to the property
How to Find Out the Value of My Solar Powered Home
In light of this information, you might once again wonder how you can find out the value of your solar-powered home. Well, this is just a simple matter of looking at your state’s attitudes toward solar energy. Like California, most states offer tax exemptions for solar panels, as well as incentive programs that cover the costs of installation.
Other ways you can research the value of your property is to:
- Look at the prices of solar installation: Looking at the prices of local solar companies will help you gauge whether or not installing solar panels will be cost-effective. While companies like Atlantic Key Energy offer solar panel installation at extremely affordable prices, the cost will largely depend on the provider.
- Research the benefits of solar: Exploring the benefits of solar should help you determine how much money you will save by switching to solar power.
In conclusion, solar energy does a lot more than save the environment—it helps you save money as well. It ensures you cut back on electricity bills, as well as reduce your taxes. All these factors play an important role in upping the value of your solar-powered property.
But if you’re researching ‘how to find out the value of my solar-powered home’, breathe a sigh of relief, because that is an easy question to answer. Simply look at incentive programs your state offers and if they will cover the cost of installing the panels. Then, weigh out the benefits of solar energy against the cost of upkeep. This will help you determine if solar power is the right option for you.