There are so many reasons to consider making the switch to solar energy. Whatever your main motivator – living a more earth-friendly lifestyle, saving money on your electric bill, or something else – it’s likely that there may be hidden benefits you hadn’t even considered. Did you know that solar panels can increase your home’s value?
If you’re a homeowner considering solar panels, you may have concerns about making the investment. This is especially true if you aren’t planning to stay in the same home for the rest of your life. You may know that the typical ROI period for solar panels is 8-10 years. And you’re not sure whether you’ll have enough time to see that return. However, it turns out that having a solar-powered home is likely to provide financial dividends. It doesn’t matter how long you live there.
Keep reading to find out more about how solar panels increase home value.
How Do Potential Home Buyers View Solar Panels?
According to Energy.gov and studies by Berkeley Lab, solar panels are seen as home upgrades, similar to a renovated kitchen or finished basement. Which means potential home buyers are willing to pay more for a home that has solar panels.
Having an independent source of energy is an attractive feature to home buyers. More than 80% of home buyers say that they value energy efficiency when buying a home.
What else do home buyers value? Research conducted by the National Association of Realtors (NAR) suggests that sustainability and energy efficiency are highly valued by home buyers. That puts eco-friendly homes in high demand. Consider these statistics reported by the NAR survey:
- 59% of realtors report that homeowners were somewhat or very interested in sustainability.
- 70% of real estate agents and brokers revealed that promoting energy efficiency in home listings is either very or somewhat valuable.
- Utility and operation costs (81%) was the top-ranked building features that homeowners indicated are somewhat or very important.
How Much Do Solar Panels Increase Home Value?
There’s plenty of research to suggest that home buyers are willing to pay a premium for homes equipped with solar energy systems. Another National Association of Realtors report indicates the importance of “green” features during the home buying process. And it even begins to give us an idea of exactly how much home buyers are willing to pay for a sustainable home and green features. According to that report:
- 68% of buyers want an environmentally-friendly home.
- 46% would pay an extra $1,000 to $9,999 on a home with green features that saves $1,000 annually on utilities.
- 37% would pay $10,000 or more on a home with green features that saves $1,000 annually on utilities.
According to EnergySage, the average cost of installing solar panels in Kansas City is between $15,000-$50,000. A homebuyer who is willing to spend $1,000 or more on a home with green features could help you meet the break-even point more quickly when it comes to your return on investment.
Across the United States, homes with solar panel systems sold for an average of 4.1% more when compared to similar non-solar properties in 2018, according to research by Zillow. On a median-valued home, that’s an additional $9,274. That may be more than half the cost of your solar panel installation.
Getting Your Return on Investment
You may have felt hesitant about switching to solar if you aren’t planning to stay in the same home forever. But it’s important to realize that you can still get a return on your investment. Most solar customers finance their system and with no out of pocket money. This means they can start saving money the very first month the system is installed, making the ROI almost instantaneous.
However, it’s not unreasonable to be concerned about recovering the full return on investment as you consider your situation in the long term. The good news? If you move out of your home before your solar panels have finished paying for themselves, you will likely be able to make that money back when it’s time to sell your home.
There’s also evidence that solar-powered homes sell more quickly than comparable non-solar homes. This means less time and stress for you as the seller. You can then look toward moving to your next home and next life stage.
And don’t forget that there are other ways to lower the overall cost of your solar installation, including government incentives. The Investment Tax Credit is available to all U.S. taxpayers and gives new solar installers 26% back of the cost spent on their system in 2020. And the state of Missouri offers a 25-cent per watt ($0.25/W) rebate for solar systems that are installed through December 31, 2023.
Get Started with KC Solar
How long you’re planning to stay in your home may not matter. Investing in solar can be a decision that pays off financially. In the meantime, you can save yourself from the rising costs of your energy bills and enjoy the savings that come along with being energy independent.
When it’s time to move on from your home, you can feel confident knowing that your solar panels add value to your home and will likely increase the sale price. Helping you achieve the desired return on investment, whether it’s your forever home or not.
Ready to install solar panels on your Kansas City home or business? Contact KC Solar. We offer 0% Down Solar Loans. And we’ll work with you to understand the best solar specifications for your home, and we guarantee your satisfaction.