Investing in a home and installing solar can be a smart financial decision with numerous benefits. Not only will you save on your monthly energy bills, but you’ll also increase the value of your property. According to a report by the National Renewable Energy Laboratory (NREL), a division of the U.S. Department of Energy, adding solar panels to a home can increase its value by an average of 4.1%.
This estimate is based on a comprehensive analysis of thousands of home sales in eight states, including California, and is widely cited in the real estate industry as evidence of the positive impact of solar on property value.
So, what exactly does this mean in terms of dollars and cents?
Let’s take a look at three examples based on average to high home prices in California:
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If you purchase a home for $350,000, the value increase from solar would be $14,350.
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If you purchase a home for $500,000, the value increase from solar would be $20,500.
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If you purchase a home for $800,000, the value increase from solar would be $32,800.
It’s important to keep in mind that these are just rough estimates and that home values can vary based on location, home size, and other factors. However, the general consensus among real estate professionals is that solar panels do increase the value of a home.
When considering the costs of purchasing a home and installing solar, it’s important to consider the long-term benefits of the investment. Not only will you save on your energy bills each month, but you’ll also increase the value of your property, potentially leading to a higher sale price in the future. It’s a smart investment all around!