For many people, solar systems are just about saving on energy bills and getting a renewable electricity source with a low carbon footprint. But the list of options for solar panel owners is much longer. Today we want to look at one of them in detail. Namely, an increase in the value of real estate on the territory in which the systems are installed.
Thanks to the Green Revolution
Thanks to the globalization of the green revolution, more and more people began to switch to alternative energy sources. Solar technology has become the most popular one. Many countries have begun to reward homeowners and investors for purchasing systems, further increasing the solar value. In just 15 years, the cost of the panel has decreased, various production technologies have appeared, the carbon footprint has been minimized, etc.
The world began to think about nature. And solar systems have become not only a good investment but also a concern for our planet.
Now, more and more people can afford to install panels.
What Attracts Buyers?
Buyers are increasingly paying attention to energy-efficient homes powered by renewable energy sources. According to the U.S. Energy Information Administration (EIA), the average utility bill for U.S. households is $117.46 per month. Perhaps this is enough to buy a house with an installed solar system. In addition, such properties often have various energy-efficient appliances installed and have excellent wall insulation. And these are additional important advantages. Moreover, a generator will be installed on the property, which accumulates excess solar energy.
By buying such “innovative” houses, a person understands that he is investing in his savings for years to come and helping the planet cope with global warming.
How Much Will the Cost of a Home With Solar Panels Increase?
Solar Panels in Modern Properties are stylish, economical, energy efficient and can come with benefits. All this is beneficial to the owner of a house with solar panels, the person who wants to sell it, and the buyer of such a house.
According to Appraisal Journal research, your home value increases by $20 for every $1 reduction in your annual energy bills. Here are approximate numbers in bills in different states:
*Data from the US Energy Information Administration (EIA).
You can roughly calculate how solar panels increase the value of homes.
How Solar Panels Increase Real Estate Sales
Solar panels increase the price of the property on which they are located due to the following factors.
No. 1. Energy Efficiency
When solar panels are installed in a house, this already indicates its increased energy efficiency. However, the green revolution has led to additional innovative solutions. Today, a large number of devices powered by solar panels are produced. Therefore, for all consumers who choose the side of energy efficiency, this is a huge plus. They are willing to pay a high price for it. There are also energy efficiency ratings that indicate a property’s potential environmental impact.
No. 2. Marketing Advantage
When selling a home, just mentioning the presence of solar panels is a great marketing ploy. Potential buyers will already pay attention to the sale announcement. But by highlighting all the advantages and possibilities of the solar system, you will achieve a colossal marketing advantage among other real estate advertisements.
No. 3. Energy Performance Certificates (EPC)
For the sale and rental of real estate, an EPC – energy efficiency certificate is required. Getting it is not an easy task. The presence of solar panels on the property will have a positive effect on the property rating, which will increase the chances of receiving an EPC.
No. 4. Long Term Savings
The main goal of installing solar systems was and remains long-term savings on electricity. Renewable energy completely protects you from high bills and constantly rising electricity prices. At the same time, the increased cost of real estate with installed panels does not frighten buyers.
Yes, if solar panels are already 20 years old, neither raising the price nor buying such a house makes sense. But if they are only 5 years old, the purchase will be an excellent investment in the future. The increase in price, as well as savings, will depend on the size of the house and the number of panels.
Approximate growth of solar home value for different real estate options:
Thanks to the long life of the solar systems, all participants in the agreement will remain within the declared savings.
No. 5. Community Attractiveness
People increasingly prefer environmentally friendly areas. If there are other houses with solar panels next to the property for sale, the increase in its value can be even more significant. A friendly and understanding community is an added plus when selling a solar property.
No. 6. Incentives and Benefits
For several years, many countries have been offering benefits and incentives to those who want to install solar panels. Their presence also increases the value of the real estate. For example, tax incentives reduce the cost of panels and their installation, and home buyers can also use them in the future. If a generator is installed to store excess energy, new property owners can earn extra money or benefits by selling solar power.
No. 7. Other benefits
By purchasing a home with a solar system installed, the buyer will not have to spend money on installation, which has a significant cost. This plus will save both money and time. In addition, if the panels are already installed on the roof, then the latter has been updated or repaired and also has a reliable seal against possible penetration of precipitation into the home.
Humanity is increasingly thinking about global environmental problems and choosing more ergonomic devices to save money. One of the best investments that solves both problems is purchasing a home with built-in solar panels. Such real estate has a higher value, but its sale is beneficial to all parties to the transaction. The seller can save due to free electricity but receive a large amount due to the markup, and the buyer does not think about installing and preparing the house but buys an already established system. The time of the green revolution is ideal for investing in energy-efficient real estate.