Solar power is a proven technology with demonstrated and quantifiable benefits. Yet, doubts continue to persist against this renewable energy. One of the common questions we get asked at Green Power Energy by potential solar customers is whether the installation will hurt their property value.
Our answer to the question is always the same: solar power brings tens of thousands of dollars’ worth of savings and even more additional income for decades, and it only increases your property value.
This advice stems from two independent studies. As per the National Bureau of Economic Research (NBER) research, residential properties with solar installations sell at over a 3.5% premium when compared with similar properties without solar panels. This research was from 2011. However, the research findings hold true even today, and are confirmed by another more recent study.
Zillow analyzed the prices of the properties sold on its platform and found that homebuyers paid a premium of 4.1% for houses with solar installations. It was a comprehensive study that covered over 500 areas across the US, and the results of the study were consistent across the country.
So, why are homebuyers paying more money for solar-powered homes? Let’s find out.
Substantial Cost Savings
Solar panel systems save households thousands of dollars in utility bills each year. That can accumulate into five-digit savings for average households in a few short years. Naturally, homebuyers see value in their investment, especially when they consume higher energy.
High Utility Bills
Houses in states with higher-than-average utility prices tend to sell at a premium when they have solar installations. That’s because the higher the electricity prices, the higher the cost savings for solar-powered houses. So, in states like New Jersey, solar-powered homes fetch a substantial premium.
Property Tax Relief
Although homeowners buy the property at a premium, they don’t have to pay taxes on the premium because property taxes are calculated on the value of the property sans solar. So, you essentially own a higher value asset and pay fewer taxes on it.
Hassle-free in Every Way
No installations, no permits, no interconnection documentation, and no inspections. Houses with preinstalled solar systems come with none of the hassles associated with installations and all the cost-savings benefits. It’s the perfect package for homebuyers.
