Solar Energy and Home Value
Does solar power increase my home value? This question comes up a lot among potential solar customers. People want to know if purchasing solar energy is going to help or harm the value of their home if and when they decide to sell. If this is you, keep reading.
Like many other home improvement upgrades, adding solar power should add to the value of the home, or at least that’s been the assumption for years. But are buyer’s really willing to pay more for a home that offers a known electricity cost?
Currently, many appraisers do not know how to account for solar panels when judging a home’s value as communities do not have enough solar energy systems installed for appraisers to have suitable “comps.” This has spurred Researchers at the Lawrence Berkley National Laboratory to conduct a study.
The study, called Exploring California PV Home Premiums, was recently published and revealed some astonishing facts. According to the study, every kilowatt of solar energy on a home adds an estimated $5,911 to the home’s value. For a 5 kW system, common on homes today, you’re looking at an added value of nearly $30,000!
While this dollar amount per kilowatt does diminish slightly based off the system age, it seems possible that California solar owners can recoup some, if not all or more, of the cost of their purchased solar system!
One of the authors of the study, Ben Hoen, thinks that soon the value that solar power brings to homeowners will be more common knowledge. There are tools being made to appraise photovoltaic installations on homes and businesses. Leasing solar wasn’t available when the study was performed, but Hoen plans to include leases in the next study, as well as perform research in other states.
How Does Sunshine Create Electricity?
Now that you know how going solar can add value you to your home, you may be wondering How does solar work? Solar panels, also called modules, are made out of photovoltaic (PV) cells. A special semi-conducting material, such as silicon, is used in most PV cells. The silicon captures the sunlight. When sunlight is absorbed, the electrons are set free. These electrons begin to flow into a current. This Direct Current (DC) is then drawn out by metal contacts on the top and bottom of the PV cells. A solar inverter takes the DC electricity and converts it to Alternating Current (AC). The AC power is directed from the inverter into your electrical panel. Your utility company tracks the net energy produced through your utility meter. If your system produces more energy than you’re using at home, the utility company gives you a credit on your account. Just think of this added bonus — when you are on vacation you can take advantage of having the power company crediting you for the energy your home solar panels produce while you are away!
Residential solar panels are installed on multiple and varied types of rooftops. They typically are either tilted or flush mounted. FYI – the panels need to be properly secured and connected — as this serves to increase the longevity of your panels.
When you invest in “going green” with clean energy solar panels, you help the environment. Creating sustainable energy in this way reduces the amount of carbon dioxide that would normally be released when using fossil fuels to heat your water, run your home appliances and more.
With the installation of a home solar system, you continuously have a source of free energy by using the power of the sun. It can shave your electrical costs by 75 percent or more. It’s a win-win for all!
Thinking of making the switch to solar? We provide every option available: purchase, finance, prepaid lease and monthly lease! We’re the best solar company.