April 12, 2019
There are a whole host of benefits to going solar, from the huge savings to the environmental uspides, but one oft-underappreciated benefit of a solar installation is the impact it can have on the value of your property. So let’s just jump in and answer the burning question right away:
Q: Does a solar system installation increase property value?
A: Simply put - yes.
Studies have shown that properties with a solar panel installation have higher resale value and are likely to be snapped up even quicker than non-solar homes when they do go on the market. For potential buyers, the idea of moving into a new home and immediately having a massively reduced electricity bill is hugely appealing. These reduced energy costs are particularly appealing as the purchase of a new home can be a financially stressful event, so any reduction in costs will be a big draw for buyers. Of course, the environmental appeal of solar can draw in potential buyers as well.
So, now that we’ve cleared that up, let’s take a look at a few reasons why solar panels increase property value, and also examine the factors which determine the extent of the value increase.
Location
The extent to which a solar panel array can add value to your home or business property is dependent on your location within the United States. Certain states like New York and California, as things stand, are more solar-friendly and have huge, active solar markets. These areas are more viable for solar installations and, thus, will likely see greater increases in property value as a result of solar installations. This doesn’t mean that those in other areas should avoid solar or expect no property value boost, merely that their increased value may not be as large as in popular solar areas.
System Size
When it comes to the solar system size and increases in property value, the relationship is proportional. Generally, a bigger system with quality panels and a large solar capacity will lead to a bigger increase in property value. If your solar system is proportionately large enough for your property, then you’re operating at peak efficiency and will likely see a decently-sized increase in the value of your property. The quality of the system is important as well, of course, so make sure your solar panel installer is providing you with an optimal set-up and high quality equipment.
Own/Lease
At YSG Solar we have always recommended purchasing your solar system outright over leasing it. There are plenty of reasons why buying is better and one such reason is the impact of owning the system outright when it comes to property value. A leased solar system can still increase value, provided you can negotiate well and clearly show the benefits of the system to potential buyers, but owning the system makes the process easier and is a distinct advantage when it comes to selling.
Concerns
Some potential solar consumers are often concerned that a solar array could diminish the value of their property in an aesthetic sense. Thankfully, rapid improvements in solar technology have led to the development of sleek, aesthetically pleasing panels that will fit right in and maintain the visual appeal of a property. In fact, there are currently solar technologies being developed that will allow solar PV systems to blend right in with existing roof shingles, meaning this will become even less of a concern in the future.
If you’re interested in boosting your property value with a solar system, contact YSG Solar right now or call us today at 212.389.9215.
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By Shane Croghan
Sources:
https://www.nrel.gov/solar/market-research-analysis.html
https://modernize.com/home-ideas/46967/how-solar-panels-improve-homes-value
https://www.directenergy.com/blog/solar-panels-help-hurt-resale-value-home/
https://www.costofsolar.com/is-my-home-worth-more-with-solar-energy/