Here's how adding solar panels to your home pays off
Below is our second guest post from a real estate professional who gives his analysis for assessing the value of adding solar panels to a home. You can also click to read his first guest post Homeowner Solar Panel Inspection Checklist.
Many homeowners wonder about whether or not a solar panel installation would benefit them. Currently, more than 1.4 million homeowners have made the switch to solar in the United States, many of which are happy to take advantage of long-term energy cost savings and boost in home value.
But homeowners who have yet to purchase want to know more about expected savings and how attractive solar would be for future home-buyers.
You should know that tax credits, rebates, and local incentives have made solar panels more affordable, along with decreasing costs thanks to growing adoption from the commercial and utility-scale sectors.
Additionally, technology is always improving, becoming more efficient since the initial introduction of solar power systems for homes in the 1970s.
Initial Cost Of Solar Energy
One of the biggest draws of going solar is that there are multiple ways for homeowners to afford the initial cost of purchase and installation.
Homeowners can choose to purchase with a loan or cash, lease a system and own the power produced, or use a Power Purchase Agreement (PPA) to get power from a system at a specific rate which would be owned by
a solar power company.
Purchasing a system outright has highest upfront cost, with maintenance duties to be performed by the homeowner in most cases.
However, thanks to solar tax credits, rebates, and incentives available to homeowners interested in purchasing solar, financing can typically be arranged at a lower monthly cost (new energy bill + solar payment) than what is currently paid for electricity.
Use this link to find solar installers in Texas, and contact the office nearest you to sign up for a free solar consultation to learn more.
Expected Savings From Residential Solar
According to the latest guide from the Solar Energy Industries Association which analyzes recent data as it pertains to how much a homeowner may save with their solar system, there are different approaches for determining the value of a residential solar system.
The income approach values a solar system based upon the projected income a solar system will generate for the owner over the expected life of the solar system. For most homeowners, income from solar energy savings is one of the main rationales for purchasing a solar system.
For a better understanding of how much income can be generated from a solar roof, view this portfolio of Residential Solar Panel Installations in Texas.
Comparable Sales Approach
The comparable sales approach uses an assessment of home sales. Homes with solar systems are compared to those without to determine residential solar’s impact on resale value in a specific area.
Using the comparable sales approach is helpful to determine current market value, which may be more useful for someone looking to sell their home soon.
Future Resale Value With Solar
There are many factors in determining additional home value when it comes time to list a home for sale. States and local communities with homeowners that have embraced solar power for residential use make it easier for appraisers to determine an estimated value using recent comps.
The condition of the house and solar system, interest in residential solar power, and the location of sale (state of the market) may all influence the estimated value.
It has been noted that homes with a solar system have sold for 17 percent more and have been sold 20 percent faster. Additional research has shown that the sale of homes with solar panels increased sale price by $17,000 in an average home.
Related Reading: How Much Will Solar Panels Increase Home Resale Value?
Sign Up To Receive A Custom Value Of Solar Analysis
Homeowners are surprised to find residential solar more affordable than previously assumed as they research available credits, incentives, and payment options.
Insert your contact information below to receive a free analysis of the value a solar power system could provide at your home.
About The Author
Kris Lindahl is a Minnesota native and owner of The Kris Lindahl Team with RE/MAX Results.
About Alba Energy
Alba Energy specializes in the design, engineering and application of beautiful commercial and residential solar power systems across the state of Texas.