As an Airbnb host, you want to maximize your profits and provide a comfortable and energy-efficient experience for your guests. One way to achieve both of these goals is by installing solar panels on your property. In this article, we’ll explore how installing solar can increase your Airbnb profits by reducing your energy bills and improving your property’s value.
How Solar Panels Can Save You Money
According to the U.S. Energy Information Administration, the average household spends around $3.80 per day on electricity. For an Airbnb property that’s occupied 80% of the time and charges $200 per night, that’s an average of $3,040 per year in electricity costs. By installing solar panels, you can reduce these costs and enjoy a more sustainable and eco-friendly Airbnb experience.
In order to estimate your potential savings, you’ll need to consider several factors, including the size of your solar system, your location, and the amount of sun exposure your property receives. However, as a rough estimate, you can expect to save between 50% and 80% on your electricity bills by going solar. That’s an average of $1,520 to $2,432 in annual savings for a $3,040 electricity bill.
How Solar Panels Can Increase Your Property’s Value
In addition to reducing your energy bills, installing solar panels on your Airbnb property can also increase its value. According to a report by the National Renewable Energy Laboratory (NREL), homes with solar panels are worth an average of 4.1% more than homes without solar. So, for a property valued at $350,000, that’s an increase of $14,350.
Let’s take a look at a few examples of how installing solar panels can increase the value and profitability of your Airbnb property:
- For a property valued at $350,000, a 4.1% increase would bring the value up to $364,350. If the property has a solar system that saves an average of $2,432 per year, that’s an additional $20,736 in profits over 10 years ($2,432 x 10).
- For a property valued at $500,000, a 4.1% increase would bring the value up to $519,500. If the property has a solar system that saves an average of $2,432 per year, that’s an additional $24,320 in profits over 10 years ($2,432 x 10).
- For a property valued at $800,000, a 4.1% increase would bring the value up to $832,800. If the property has a solar system that saves an average of $2,432 per year, that’s an additional $38,208 in profits over 10 years ($2,432 x 10).
As you can see, installing solar panels on your Airbnb property can not only reduce your energy bills but also increase your property’s value and profitability. By investing in solar, you can enjoy a more sustainable and profitable Airbnb experience while providing your guests with a comfortable and energy-efficient stay.