So, you want to go green and you spend a whole lot less money on energy costs. One of the best solutions at your disposal is to get yourself a solar panel array. Getting a good solar panel array can help you save massively on energy costs.
Moreover, if you get the right kind of solar panel array, you can actually make money by selling excess energy back to the grid. Now, one of the things that many people consider when it comes to solar panel arrays on their homes is how much value will be added to the resale value of their home.
Obviously, something like a big solar panel array is going to add a lot of value to a home. So, how much value do solar panels add to a home, and what factors are there that you need to consider?
How Much Value do Solar Panels Add to Homes?
Exactly how much value is added to a home thanks to the installation solar panels does depend on a variety of factors. However, with that being said, based on the most recent studies, what you can assume is that solar panels will add about 4.1% of the home’s value. However, it does of course depend on a variety of factors, so this figure could be anywhere from 3% to 6%.
Other estimates show that the resale value of a home is increased by up to nearly $6000 for each kilowatt of solar panels that are installed on the home.
Now, what does need to be said is that location does play a fairly large role here, because studies show that in areas such as California, the addition of solar panels to a home can add up to 2.7% to the resale value, whereas in a place like New York City, the addition of solar panels to a home can add up to 5.4% to the resale value of the home.
Factors that Affect How Much Value Solar Panels Add to a Home
As mentioned above, the resale value that is added to a home thanks to solar panels is not always the same, and exactly how much value is added to your home thanks to the addition of solar panels depends on a variety of factors, so let’s take a look at exactly what these factors are.
One of the most important considerations is how much it costs for those solar panels to be installed locally. For instance, if the buyer of your home would save money by having a solar system already pre-installed, then it will raise the resale value of the house even more. The more value the new buyer gets from those solar panels, the more value it will add to your home.
Another important factor to keep in mind is how much it is going to cost to maintain that solar panel array, and how much the replacement parts cost.
For instance, if you have a solar panel array that features a low-maintenance design and has parts that are not very expensive and easy to find, then it is going to increase the resale value of your house just that much more. However, if the solar panel array is very difficult to maintain and has expensive parts that are difficult to find, then it is going to add less value to your home.
Age of the System
Just like with anything else out there, solar panel systems do lose value as they age. This is the basic concept of depreciation. Simply put, things lose value as they age, and it’s all because as they get older, they are more likely to break and to need maintenance. Therefore, the newer your solar panel system is, the more value it will add to the resale value of your home.
Solar panels are all about producing power for your home, so obviously, one of the biggest deciding factors in terms of how much value is added to your home, has to do with how much power those solar panels produce.
For instance, a 4-kilowatt solar panel system may add close to $24,000 of value to your home, whereas a 10-kilowatt system could add nearly $60,000 of value to your home. Exactly how much value is added to the resale value of your home is directly related to how much power output your solar system features.
The other important factor to consider here is the geographical location of the home itself. For communities that have extremely high electrical costs, a solar panel array will add more value to the home because it allows homeowners in that specific geographical region to save more money on energy costs.
Moreover, factors like exactly how much sun the area in question gets can also be a deciding factor because the more sun an area gets the more useful those solar panels would be.
Why do Solar Panels Increase Home Values?
Now that we know what factors affect exactly how much value is added to a home due to the addition of solar panels, let’s figure out exactly why people like to buy homes with solar panels.
People are Going Green
Perhaps one of the biggest reasons as to why people are becoming much bigger fans of solar panels is due to the fact that they recognize that our planet is in dire straits as far as the environment is concerned.
The bottom line is that our world is quite literally burning around us, and continuously using unsustainable, extremely polluting, and dirty energy sources just isn’t going to cut it in the long run. People recognize that they need to act now if we want to preserve this earth for future generations.
People Like Saving Money
Of course, another reason why people like getting solar panel arrays to power their homes is quite simply because it allows them to save money.
Now, solar panel arrays are not the cheapest to install, which means that it will take several years for you to make up the cost in terms of energy savings, but with that being said, those savings don’t take all that long to accumulate. Energy costs are skyrocketing, which makes solar panel arrays more and more feasible as the years go on.
People Like Making Money
Another reason why some people like installing solar panel arrays on their homes is because they can actually be beneficial in terms of profits.
In other words, if you have an on-grid or grid-tied solar panel array, and you don’t use all of the energy that you produce, then the excess energy will be sent back to the grid, and this actually provides you with a profit. In other words, you actually sell that access back to the utility company, and over the long run that can actually provide you with quite the tidy profit.
People Might Want to Live Off Grid
The other reason why many people are choosing to get solar panel arrays for their homes is so they can live off-grid. Whether you want to save money in the long run, you don’t want to rely on others for your energy needs, or you don’t want to be monitored by Big Brother (the government), then living off-grid is certainly becoming a more attractive option.
Do Solar Panels Make Sense for You?
Before we call it a day, the other thing that we want to help you figure out is if it is worth it for you to get solar panels for your home. Do solar panels make sense for you?
How Much do You Spend on Utilities?
One of the questions that you should ask yourself is how much you spend on utilities, especially compared to the surrounding areas. The more money that you have to spend on your monthly utility bills, the more money you will get out of a solar panel system, and this also translates to potential new buyers of your home.
How Much Sun Does Your Home Get?
One of the other main things that you need to consider here is how much sun your home gets. The fact of the matter is that of course the more sun your home gets, the more power those solar panels will produce. Therefore, the more sun your home gets, the more money you will get out of those solar panels. Remember these are all things that will also affect the resale value of the home.
Are There Any Financial Incentives?
Another thing to take into account is whether there are any financial incentives available. There are many areas that will provide you with financial incentives such as tax breaks if you install eco-friendly power sources on your home.
Do You Plan on Selling Your Home?
The other thing that you should consider here is whether or not you actually plan on selling your home, because the fact of the matter is that it does take a few years to get your investment back when you install a solar panel array. However, this investment comes back to you much quicker if you sell the home shortly after installing them.
The bottom line here is that in some places you can add well over 5% of the total home’s value just by installing a solar panel array. Of course, there are a few things that you need to consider before you do so, but with that being said chances are almost 100% that you will benefit from a solar panel array in more ways than one.