Solar panels have both environmental and financial benefits. This has made it popular among Texans. But how do solar panels add value to your home? This post explains how solar panels impact your home’s value.
You’ll find out if solar panels are worth the investment for homeowners in 2023. Whether you’re all about being eco-friendly or just looking to save some dough on your energy bill. Solar panels could be the answer to all your problems. Keep scrolling!
How does adding solar panels add value to your property?
Solar panels save electricity, which results in a higher value for your property. According to research conducted by the United States Department of Energy’s Lawrence Berkeley Laboratory, purchasers have always been willing to pay extra money for properties equipped with solar power systems.
An older study shows the sales of over 22,000 residences in eight states, nearly 4,000 of which included solar PV systems. Two years ago, the United States had 2 million solar panel installations. Wood Mackenzie Power & Renewables predicted that solar installations would jump to twice that number by 2023. A Pew Research survey found that 46% of US households are considering installing their own solar panels.
Strong demand can result in a speedier sale and a higher selling price.
Why invest in solar panels before selling your home?
The value of your property rises because you save money on energy by installing solar panels. These higher savings translate into higher returns when you think of selling your home.
As per Zillow, houses featuring solar panels sell for around 4% more than houses without any solar panels. Many studies have indicated that solar panels enhance home values. A house with solar panels is less expensive to maintain because it uses less energy.
You must own panels and your property in order to have an impact on your property value. The reason for this will be revealed later in this article.
You can profit from solar while selling your home for the following reasons:
1. Incentives for solar panels
According to South Texas Solar Systems, the US Environmental Protection Agency (EPA) provides tax breaks and rebates for energy-saving initiatives. This includes tax credits for installing solar energy systems.
The solar tax credit is valued at 30% of the cost of a solar installation. For example, if your solar system costs $20,000, you will be eligible for a $6,000 tax credit. The rebate does not reduce the initial cost of installation. Rather, it reduces your federal income tax liability. Suppose you owe $9,000 in taxes and receive the $6,000 tax credit; your tax liability reduces to $3,000. Pretty simple!
Solar service providers say that you can deduct your tax credit directly from your tax payment. When you file your annual tax return, you can deduct federal taxes from your taxable earnings.
2. Meeting demand
When looking for a home, 80% of buyers look for solar panels and energy-efficient features, according to CNBC. Along with a stronger emphasis on green living, it addresses two important financial goals for home purchasers. That is
- Trying to save money on energy.
- Controlling and managing energy bills.
Many new homebuyers are budget-conscious and environmentally sensitive. Solar panels will entice even the most eco-unconscious customer with their savings on energy. They can also control their energy costs. How much value solar panels add depends on your local market.
3. Time and money savings
Installing solar panels before putting a house on the market also increases the chances of it selling quickly. According to NREL research, houses featuring solar panels sell 20% faster than comparable residences that are grid-connected.
The shorter your house’s listing period, the more maintenance and upkeep you will save. As a result, you’re also less likely to get delisted or accepted for a lower price than the appraisal.
4. Solar panels’ contributory value
A solar panel installation can help supplement the energy savings from other energy efficiency modifications you’ve made. That is to say:
- When you update your home’s insulation, you save money on heating and cooling. It’s because hot and cold air stays inside.
- When solar panels capture the sunshine to light your home, LED lighting efficiency increases.
The benefits of combining solar panels with additional solutions can’t be emphasized enough. These modifications, and others, will not only reduce your energy costs every month. But they will also be an irresistible lure for buyers when it’s time to sell your home. Do solar panels add value to your home? It is quite obvious now what the answer is. But is there anything you can do to make your home’s value rise even more? Check out the rest of this article for the answer.
Increase your home’s value even more by going solar
You start saving money as soon as you install solar panels. With a bit of investment, however, you can get the most value. A solar battery, for example, can further reduce your dependence on the electricity grid. Sometimes forever!
You’ll gain more value when selling your property with a solar panel system that includes a storage battery. You can store the energy generated by the panels and use it later. You can even get rid of your electricity bill if you’re not reliant on the grid. Your home will also be more valuable with a solar system with a battery. Potential buyers are more attracted to them.
Listing and selling your home pro tip
The value of your property should rise when you invest in solar panels. There are a few restrictions on the use of solar panels when listing a home, however.
- Firstly, the solar panels must be owned rather than leased. Buyers are excited about homes featuring solar panels. But they don’t want to be bound by the contract of the previous homeowner.
- Second, you must seek the services of a certified listing agent to execute the sale. You can coordinate with the purchaser to make sure they select an appraiser who is also knowledgeable about solar energy.
You will rely on unskilled realtors and bank appraisers to sell your house without expertise, training, or tools. They might be unaware of the true value that solar provides to a home. Your house may have to be sold below market value if you do not have the right partners.
Some more factors influencing your home’s value
A solar panel’s total impact on your property value also depends on the following factors:
- The money you spend on electricity bills each month.
- The amount of sunlight that your home receives throughout the year.
- Available financial incentives.
So do solar panels add value to your home in Texas? Yes, it is. Texans have invested a lot in solar panels, which will increase their homes’ values. For many homes, the decision to purchase solar panels is driven by cost. Solar panels do much more than add value to a home in Texas. They are also a cost-effective way to save money on energy bills.
If you want to know more about how solar panels will increase the value of your home, contact us and book a free solar consultation with our experts. Get a quick and free quote by filling out the form below if you need to know how much solar panels will cost.