Estimated read time: 3-4 minutes
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Residential solar systems are, in comparison to, say, the light bulb, relatively new. When something is new, it’s hard to see the long-term benefits. One of the biggest skeptical criticisms of going solar is the idea that installing a solar system to your home will not increase its value.
The good news is that residential solar systems have been installed nationally for at least the last 20 years, which gives us a pretty good snapshot of the industry in general, not to mention how the real estate market is affected by the residential solar world.
Recently, Solar Energy Industries Association came out with a report showing that from 2014 to 2015 Utah moved up from No. 23 to No. 7 in the nation for installed megawatts of solar photovoltaics. This means the solar industry in Utah is booming as more and more homes opt for solar PV systems to power their home.
We are back today with Kelly Curtis, Director of Operations at Solaroo Energy, getting the facts on if and how installing solar panels on your home will increase its value.
A growing trend
Mr. Curtis starts off by speaking to the increase in the Utah market for going solar. “It’s an exciting trend,” he begins, “to see Utahns discover the value of becoming energy independent. For years, we’ve had really great data coming from states where solar is a lot more popular, like California and Hawaii, but now with this Utah increase we are also starting to see concrete data coming from local sources that show that a home’s value does indeed increase with a photovoltaic solar system installed.”
Last year, a study conducted by the Lawrence Berkley National Laboratory stated that on average, home buyers were willing to pay an average of $15,000 more for a home with Solar PV installed. “Here, locally, it’s not quite as high of an increase,” states Curtis, “but as more Utahns see the benefit to having a solar home, we can see, based on National numbers and trends, that the value is only going to go up.”
How it affects value
Julie Prince, Senior Loan Underwriter at CCS Loans, a lender of new home construction and remodels based in South Jordan, mentions, “We are definitely seeing more appraisals being done that include an increase for having solar panels on the home. The ones we’ve done range between $7,500 and $10,000, which is a great sign for those homeowners who are wanting to make the switch to solar.”
Prince continues, “When you really sit down and crunch the numbers, you start to see how much of an impact going solar really has to the value of your home. Nationally we have seen that the increase has been very close to the amount you pay for your system after tax incentives. That is what we expect here in Utah with more home sales data — a 1:1 ratio of home value increase to net cost.”
If you are interested in learning more about the cost benefits of having Solar PV on your home, visit solarooenergy.com
