Solar panels are an invaluable renewable energy source, and it's no secret they can save you hundreds of dollars on your utilities! It’s also true that their installation is pricey, and you may wonder if they're as great as you've heard. If you want to know whether it's worth the money and how it affects the value of your home, stick around, and we'll cover everything you want to know.
Solar panels can increase the value of your home by 2.7% – 5.4%. Homes with solar panels sell at a national solar premium of 4.1% more than homes without solar. Regions can differ within the same state, like Riverside, CA, which sells at 2.7%, and San Francisco, which sells at 4.4% solar premium.
The increasing demand for homes with solar panels is more evident now than ever before. It's an excellent choice for the environment, saving a substantial amount of money on utilities. Let's discuss how solar panels impact home prices across the US and the value they add.
Do Solar Panels Add Value to Homes?
Homes with solar panels average 4.1% higher in sales than homes without solar power. Depending on the market, it translates to a dollar value of $9,274 – $41,658. Factors like the location of your home, electricity rates, and the age of the system cause the 4.1% figure to fluctuate.
The truth is that the US populace is more concerned about their health, the environment, and national security now than ever before. Their interest in solar energy homes has become more pronounced among homeowners as a result.
One of the primary reasons why people pay more for solar homes is because it promises substantial energy cost savings. Homeowners who know they spend a lot of electricity will gladly pay the upfront expense if it saves thousands in the long run.
Solar homes also have less obvious but highly valuable features, like heated floors and swimming pools, making icy winters more bearable. These features add a quality of life kind of value that is hard to measure but is a premium feature nonetheless. The desire for an energy-efficient home is on the rise, with more than 80% of home buyers stressing the importance of having a home with energy-saving features.
Are Solar Panels Included in Home Appraisal?
The Appraisal Journal states that the value of your home will increase by $20 for every $1 reduction in your yearly utility bills. This means if the solar panels in your home can save $200 worth of electricity in a year, it would add $4,000 of value to your home.
As we saw earlier, these figures can vary between 2.7% – 5.4% according to the home’s location. In some cases, the premium can be widely different within the same state.
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For instance, Riverside, CA, has a premium of 2.7%, while Los Angeles climbs to 3.6% and San Francisco to 4.4%. New York goes as high as 5.4%, which is twice as much as that of Riverside.
Do Solar Panels Add Value To Your Home?
Apart from monetary value, owning a home with solar panels can also contribute positively to the environment. You also protect yourself from power outages and make a worthwhile long-term investment.
You are Independent of the National Power Grid
Solar panels allow you to draw less energy from the national grid, meaning you don't have to rely on fossil fuels and utility companies. This can be a great asset when those around you experience a power outage or when energy prices are on the rise.
The Environment Benefits from your Solar Panels
Solar energy is clean and renewable and doesn't leave any carbon footprints. Since most of your energy will come from the sun, you'll contribute to a more sustainable future.
Solar Panels are a Lifetime Investment with Excellent Returns
Solar panels typically last longer than 25 years. Since the sun won't be going anywhere anytime soon, and day always comes after night, you're guaranteed a reliable energy source for a long time. You'll be thankful for the financial benefits, and you can spend the money on things that matter more.
If you find that you’re drawing more than you can use, you also have the option to get involved with metering and sell your excess electricity and make a tidy profit.
Do Homes With Solar Sell Faster?
Solar homes sell much quicker than regular homes because buyers view solar panels as upgrades to the house. It’s similar to a newly renovated kitchen or a beautifully furnished basement.
Home buyers know they’ll save thousands on utility bills, so they will always opt for the solar option over the non-solar option. It's a superb investment that holds value from the present to the future. The added solar premium to the house sale is another attractive feature.
There will never be any hidden costs with solar energy because no one owns the sun, and it costs nothing to collect its energy via solar panels. Furthermore, solar panels don't require a lot of maintenance. They work all the time without the need for regular check-ups.
What is the Value of Solar Houses in Arizona?
Homes with solar power sell for 4.1% more. The median home value in Arizona is $376,369. Solar panels can add about $17,313 to the value of a typical home in Arizona. Here are some facts showcasing the value of solar houses in Arizona:
What is the Value of Solar Houses in California?
The value of solar homes in California varies from 2.7% – 4.6%. The average cost of a home is $708,936, adding a dollar value of between $19,141.27 – $32,611.06.
What is the Value of Solar Houses in Colorado?
Colorado solar homes sell at the national average of 4.1%. The average price of a house is $509,800, meaning solar panels add a dollar value of $20,901.80.
What is the Value of Solar Houses in Florida?
The average solar home in Florida sells for 4.1% – 4.6%. With an average house price of $313,217, you add a dollar value of $12,841.90 – $14,407.98.
What is the Value of Solar Houses in Illinois?
Solar homes in Illinois sell for 4.1% more. The average home costs $239,408, which adds a dollar value to your home of $9,815.73.
These statistics from EnergySage show that solar homes in Illinois have become more affordable, profitable, and environmentally friendly over the years.
What is the Value of Solar Houses in Massachusetts?
Massachusetts shares the national solar premium of 4.1%. The average home in Massachusetts costs $533,440 and adds $21,871.04 of value. Data from SolarReviews reveal the following statistics between 2010 and 2023:
What is the Value of Solar Houses in New Jersey?
New Jersey’s solar homes have a premium of 4.1%. The average cost of a home is $421,124, which adds a dollar value of $17,266.04.
What is the Value of Solar Houses in New York?
New York – New York is on the high-end, with an impressive 5.4% solar premium. The average cost of a home is $363,990, adding a dollar value of $19,655.46. If you glean New York’s government website, you’ll find the following facts about solar houses between 2010 – 2023:
What is the Value of Solar Houses in Texas?
What is the Value of Solar Houses in Virginia?
Virginia’s solar premium is the same as the national average, 4.1%. The average cost of a house in Virginia is $335,198, adding a dollar value of $13,743,12. SolarReviews has the following statistics relating to solar houses in Virginia:
Solar panels add a significant amount of value to the present and future value of a home. You save on your finances by paying a lot less in utilities, and you even have the option to sell excess electricity for a profit.
A house with solar panels sells at a 2.7% to 5.4% solar premium, which can be anywhere from $9,000 – $30,000 added value. (Related article: Are Home Solar Panels Worth It? A Cost-Benefit Analysis)