How Much Will Solar Panels Add Value To Your Home?

You're probably here for an estimate of the value of your home worth after solar panels are attached to it.

We did some research on the benefits of homes that have improvements in energy efficiency like solar panels for homes. We found a myriad of sources that are trustworthy on the subject, and we've compiled the details that you will find in the following article. You might are wondering the best way to estimate the amount of the increase in the value of your home. We've put together an easy-to-follow manual as well.

This article will cover research studies on solar power and home sales across the nation and also examples of calculations of the value of homes and examine the factors that impact the valuation of solar-powered houses the most.

Solar Panels Increase The Worth Of A Home

Let's begin by creating an experiment. Imagine that you're planning to purchase one of the two houses situated on the exact same road. The only difference is that one has sufficient solar panels for its roof that it can eliminate the $200 monthly electricity bill. The other, however, has a flat roof.

This amounts to $2,400 annually in savings when you buy the solar home instead of the next. Not only will you save a lot on your electricity bills each year, but you'll also be reducing emissions from your house and avoiding the negative effects of future rate increases by producing your own power.

It's logical to expect that the worth of a solar-powered house will be higher than those without solar panels. However, the question is what exactly? The exact answer depends on a myriad of factors which we'll discuss in the next section however, we'll review three research studies to help in determining a number that you're at ease with initially.

Research has shown that Solar Energy Is Linked To the Value of Properties

Appraisal Journal Appraisal Journal The Appraisal Journal authors Ruth Johnson and David Kaserman wrote, "Home value increases of approximately $20 per dollar savings on energy costs". If you take the $200 savings per month it is possible to imagine the value of the solar home being approximately 48,000 higher than prior to ($200 12 months plus 20is $48,000).

For a different example, a study carried out in collaboration with the Lawrence Berkeley National Laboratory yields the formula for a five-dollar increase in resale value for each Kilowatt (kW) generated by solar electricity that is installed. For a similar increase in value for your home of $48,000, as reported in the Appraiser's Journal according to the formula above, you'll require a 9.6kW installation (9.6 plus $5,000 = $48,000).

With an average in the region of 3500 dollars for one kW installation, you could install the same type of system installed for only $33,600. The variation in value relative to the cost of the investment provides you with an opportunity to make a profit of $1,500 for every one kW of solar energy that is installed. This isn't even taking into consideration that government tax deduction on investment which allows you to recover 26 % of the cost of your solar home system. In some states, it is possible to increase the worth of your house increases and is not subject to additional property taxes.

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