Facebook Ad Bing Ad

An Average Solar Home Sells at 4.1% More in NJ: Here’s Why

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.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Started Today

Get Started Today

Let’s talk about potential solar opportunities. We offer free, no obligation quotes to get you started on your solar journey.

If you’d like to talk with us outside of getting a quote then please reach out to us using our contact page.

© 2021 GREEN POWER ENERGY (844) 584-0008
47 East Street Annandale, NJ 08801
700 Canal St. First Floor Stamford, CT 06902
117 Kendrick St Suite 300, Needham, MA 02494
NJ HIC #13VH05559800

NJ ELC #34EB01151200

PA HIC #PA128259
CT HIC #0656622
CT ELC.0205319-E1
RI HIC #44065
MA HIC #200273