Can solar panels increase your home value?

Solar energy is steadily climbing the ranks to emerge as the best and a cost effective source of renewable energy for electricity generation. With a looming climate crisis and rising electricity bills, consumers are looking for cheaper and environment friendly alternatives to maintain their current lifestyle.

Switching to solar energy is remunerative in nature since it controls the carbon footprint, generates an inexhaustible source of energy and encourages savings in the long run. Plus, solar panel installations are known to increase home value!

How solar can increase home value 

Solar panels are viewed in a positive light and are treated as a great green asset to your homes. Due to its multiple benefits, many people view the solar rooftop system as an investment that will yield increased returns in the future. 

Research indicates that the more solar panels there are on rooftops of homes, the higher the value of the house with an estimated increase of almost $6000 dollars per kilowatt of solar energy. This indicates a rise of over $29,000 in the retail value of the home for a 5kW installation. Since electricity rates are constantly rising and fossil fuel depletion has hit a new record, people prefer buying houses that come installed with a rooftop solar system, thereby increasing house value. 

Energy efficient homes also sell faster and for much higher than those which did not have solar arrays. This indicates that even if you were to move out of your home, the ROI on solar panels will be exponentially greater than your initial investment.

Factors affecting the value 

• Location
  Your location influences the electricity generated, bill costs and sun exposure you get which can ultimately decide the rate at which the value of homes can increase

• Local solar installation prices
  Another geographic factor is the cost of getting a new system in your area. If a buyer would save money by purchasing a home with a system already installed, it will make your home that much more valuable

• Output
  The larger the rooftop solar system, greater the electricity generated meaning increase in one’s home value

• System age
  Older systems will have to account for potential depreciation over the years and may not add significant value to homes. A new, modern system will definitely fetch a higher price since the buyer doesn’t have to invest in repair and maintenance immediately

So, how much do solar panels increase home value? Let’s take a look at some averages:

*Figures based on a study by Lawrence Berkeley National Laboratory.

It’s worth noting that these amounts are roughly in line with the total cost of a solar panel system. Bigger installations = More value.

Start your solar journey with Mahindra Solarize where we guarantee delivery of quality services, brand trust, round-the-clock support, reliable innovative technology, and easy financing plans to boost your home value with solar assets.