A small view of a park can make an apartment worth so much more in New York. In a city that’s perpetually crowded and busy, a window that gives the apartment’s inhabitants a glimpse of some greenery is something special.
But just like a window with a beautiful view, can solar PV panel installations also boost your property’s resale price? This article claims it sells 17% faster and 20% more (although it represents the market dynamics at that time).
The most honest answer to this is: Yes, but it depends.
THINGS TO CONSIDER
Location. Where you live matters. For instance, if it’s always rainy or overcast in your area, solar might not be the best renewable energy option. Meanwhile, living in a neighborhood saturated with environmentally conscious residents will always add more value to your home rather than the contrary.
In the study Selling Into the Sun done by the Berkeley Laboratory with the approval of the Department of Energy, it’s claimed that PV panels will sell $1.10/W higher in California. In other states, it is estimated to cost $4/W or $15,000 for a 3.6-kW PV system.
Legalities. If your state offers incentives, rebates, or federal incentives, chances are you bought those panels with a much lesser out-of-pocket cost. This is why some people not only recoup what they spent on their PV panels when they sell their homes, some actually get more.
Size. The bigger your system is, the more electricity it will generate. This means that the household that relies less on electricity from the main grid will have greater savings. Some families even have negative bills, which means they were paying more than they should have. Some consumers even go as far as to claim that you can have a 200% return on your PV panels.
Utility Electricity Rate. Because you can supply yourself with your own electricity, you’ll rely less on the grid, and this will reflect on the reduction of your monthly bills. The more expensive electricity in your area is, the more valuable will alternative sources of energy be such as… solar, of course.
Ownership. It is very important to note that the solar PV panels only increase value to your property if you own them. If they are leased, it only means that the next owners will continue the payment.
Choosing renewable energy used to be more about being socially and morally conscientious as threats of climate change beset the planet. However, as sources of fossil fuels wane and traditional means of generating electricity become costlier, turning to green energy has also become economical and practical.