How much more would you pay for a house with solar panels installed? The value-add of solar panels is a common question. Unfortunately, the answer is less cut and dry than one would like. This blog will address whether solar panels add value to your home.
There are conflicting reports on whether solar adds value to your home. So allow us to start with transparency: DroneQuote helps people buy solar and roofing for their property, so take what we have to say with a grain of salt.
DroneQuote survey on how solar panels affect the price of your home?
The Lawrence Berkeley National Laboratory conducted a scientific study in 2015 to help get to the bottom of this. The study concluded that installing solar panels adds about $6,000 per kilowatt you install-in California. If you install a 7-kilowatt system, you could add $42,000 in value to your home.
DroneQuote recently conducted a study on real estate professionals, asking the following questions:
In your experience, how do (non-leased) solar panels affect the sales price of a home?
70% of respondents said solar panels had No quantifiable effect on the price of a home.
10% said solar increased sales price.
7% said solar decreased sales price + 6% from this segment of extra hassle and turn-off, which we logically interpreted as a negative factor for the price, so that makes 13%.
6% said it depends on the buyer.
1% said solar increased price depending on the panel type.
Realtors should appreciate your solar
For solar panels to increase the value of your home, your realtor has to know how to and be able to appreciate your solar. You should keep proper documentation of the system components. It would be best if you were also keen to ensure your monitoring is functional. Plus, It can save you A LOT of money by catching malfunctions before they snowball into big utility bills. It will also give you the ability to quantify your annual production accurately. A good realtor can build that into a home’s profile. He can make a case for why $4,500 in avoided utility bills means a lot to a prospective buyer.
Put yourself in the position of a home buyer deciding between two similar homes with solar. One has solar as far as the naked eye can see, but you don’t have much else to go off of besides its visual presence. Compared to the second home, that can show you all the solar ownership documents and warranties, proof of functionality, and the cost difference of electricity for that home with and without solar. Everything else being equal, which do you choose?
You may sell a house with solar panels and add more value. But remember that specific housing market conditions may also obscure the value of solar panels and make it hard to quantify the upside.
Solar value-add depends on you
Ultimately the value-add of solar panels relies on you. Like who you choose to install your panels, how you own and maintain them, and the realtor you select to sell your home.
The latter point makes the most significant difference because most realtors will sell your house, but a great realtor will know how to price and showcase your home so that it commands the highest value with or without solar panels.
For inquiries about everything solar, DroneQuote is here to assist you. Sign up with us to get multiple quotes on the solar panels you need for your home.
Watch this video to know how solar monitoring can save you thousands!