With their increasing popularity and affordability, solar panels are a hot commodity for eco-conscious homeowners. But solar power is good for more than just the environment. Installing solar panels can help you save money on utilities and can also increase the value of your home.
You might be wondering, “how exactly do solar panels impact the property value of my home?” The answer depends on several different factors, but the bottom line is that solar panels are almost always a good investment for homeowners.
Keep reading below to learn more about solar panel installation and its financial benefits!
How Solar Panels Increase Property Value
When a home is energy efficient, its value increases. Under ideal circumstances, rooftop solar panels can provide enough energy to offset a household’s monthly utility bills. If your home design and location lend themselves to solar panel use, they could be a smart investment for you.
Several different studies have linked the installation of solar panels to higher home values. On average, solar panels boosted home values by 4.1% nationwide in 2019. This number varies depending on location, but there’s nowhere in the U.S. where home values drop as a result of solar panel installation.
Solar energy savings usually offset the up-front solar panel cost of installation after a few years. For more information on how solar panels increase property value, check out this useful guide from Blue Raven Solar.
Factors That Impact Value
Solar panels enhance the value of your home, but the return on your investment might not be significant enough to cover the up-front cost. The bottom line depends on several factors, including the type of panel that you choose and the amount of sunlight that your home receives.
Type of Solar Panel
There are several different kinds of solar panels available for residential use. The larger your system, the more value it will contribute to your home.
The age of the panels is also important. New panels contribute more value than older models. Solar panels can last up to 25-30 years.
Solar panels provide the biggest benefit in areas that receive a large amount of sunlight. In sunbelt states, for example, sunlight is available year-round. That makes places like Texas, New Mexico, Arizona, and California especially attractive for fans of solar power.
Homeowners can take advantage of the federal investment tax credit. This allows you to claim a tax credit worth 26% of the cost of your solar power system.
Different states have additional benefits for solar power. If your state participates in these incentive programs, you might be able to get additional money back on your state tax return. State incentives range from $500 to $5,000.
Increase the Property Value of My Home
Are you ready to take your home to the next level? Depending on the location of your house and the type of solar panel you’re interested in, solar panel installation could be beneficial for your home’s value.
If you’re looking for more answers to questions like “what is the property value of my home,” check out our site. With articles on everything from home improvement to technology, we’ve got the answers that you’re looking for!