Solar energy is booming in the United States, showing immense growth since 2000. In the last decade, solar has experienced an average annual growth of approximately 49 percent. There are many reasons why growth continues to occur among residential homes, including falling prices, its impact on the environment, and investment potential, especially in terms of property value.
Numerous studies have shown that homes with solar panel systems increase the value and selling price of homes. Early studies conducted on California homes found that property value increased by 4 percent or more following the installation of solar panel systems, but only when systems are owned, not leased.
Why Invest in Residential Solar Power Systems?
Based on the research, installing solar power systems is one of the safest investments you can make. While it is estimated that solar power can increase the value of your home by 3 to 4 percent, solar incentive programs support an even greater financial return. Based on recent trends, the real estate industry is working towards a more accurate and sophisticated method for determining the market value of these systems, which may lead to even greater returns.
According to Cost of Solar, over the 25 to 30-year lifetime of a solar power system, you can enjoy significant electricity bill savings. Even if you're not interested in selling your home, based on the electricity savings alone, your system will pay for itself. However, if you do decide to sell, you will receive a premium, further increasing your return on investment.
If you have the right-sized system, your investment could pay a 200+ percent return — and best of all, those returns begin on day one, regardless of how small or large your installation is. While there are varying systems and the best option for you can be discussed with a GreenLogic expert, your property value can increase as you scale up.
In addition to getting you a higher asking price when you sell, installing solar panels can help you sell your home 20 percent faster than properties without solar installations.
It's also important to note that current statistics are based on today's utility rates and housing prices. Since electricity rates will most certainly go up in the future, the advantages of solar will also rise in response to these increased rates. Solar energy will remain free.
How Much Do Solar Panel Systems Increase Property Value?
Although the location and value of your home, as well as the size of your solar installation, are also variables to consider, according to the National Renewable Energy Laboratory, each additional $1 in energy bill savings adds $20 to the total value of your home. This general rule of thumb depends on:
Where you live. Solar installations in highly active markets, like New Jersey and the surrounding area tend to offer higher returns than areas that are less developed. Long Island has long been a leader of solar energy in New York and continues to this community continues to evolve.
The size of your installation. Your property value will increase based on how many panels you have, as well as the quality of those panels.
The initial value of your home. Larger, more expensive homes tend to see a higher nominal boost in property value.
The exact figures will vary from property to property, but recent research shows that on average, installing solar panels can increase a U.S. property value by an additional $9,274 for a medium-valued home — some estimates are even higher.
A Lawrence Berkeley National Laboratory study found that the average solar panel system increases a home's property value by an average of $16,000 in California and nearly $13,000 elsewhere, equating to an average premium of about $15,000.
If you are planning on making home improvements, solar energy is difficult to beat. Not only will you reduce or even eliminate your electricity bill, but if and when you sell, based on the added value of your property, you could get 100 percent of your money back. In contrast, the average kitchen remodel will only deliver a return of approximately 60 percent.
Investing in Solar Panels for Your Home
If you reside in Long Island, solar energy is an excellent investment. New York has a significant amount of solar potential which is why the state has consistently been in the top ten solar markets across the United States.
While significant advances have been made this past year based on the official formation of the Long Island Solar & Storage Alliance, GreenLogic Energy has been serving the Long Island area for more than 15 years. We have installed more than 3000 systems, savings our local customers more than $500 million.
Learn more about the benefits of going solar and how it works here.
Have questions about installing a solar panel system for your home? Or, do you know someone who is interested in the benefits of solar energy? If so, be mindful of our referral program. When you personally refer friends and family to GreenLogic, you will earn up to $2,250.
Give us a call at 631.771.5152 to schedule your free consultation or to chat about your options today!