For investments to be worthwhile, they must return more than they cost. A strong case for solar energy is that it ends up paying for itself. All upfront costs end up getting taken care of through a lowered or eliminated energy bill. Over the life of the system, customers end up making 2-3 times the investment.
That sounds smart, but many homeowners are still hesitant to move forward because they fear they won’t be in the house long enough to get the big pay-off. However, there is good news; installing a grid-tied solar energy system will boost your property value, increasing your selling potential. Even without living in your house to break even on your installation price, the extra money you get from the sale will more than make up for it.
Going by the Numbers: Increase of Up to 4%
According to the housing website Zillow, homes with a solar power system installed sell for up to 4.1% higher than homes without a solar power system.
Another study was taken focusing on sale prices of over 22,000 homes in six states to draw links between solar power systems and home resale value. The research found that PV homes (those with photovoltaic systems) sold for an average of more than $14,000 or 3.74% more than homes without PV systems.
Homeowners can reasonably expect to regain any investment in the system installation when they are ready to sell the house, even if they choose to move within a year or two. Added to that are the tax incentives and lowered energy bills in the meantime.
Some states don’t factor a PV system into the value of a house, meaning your property taxes will not increase. Make sure to check your local laws.
Two Considerations for Solar Power and Home Value
Installing a solar system for your home helps out your home value - good! But consider the following:
Keep Your System Small
PV homes sell at a premium, but that does not scale to the wattage or power they produce. More powerful systems did not drive prices up in proportion to their installation cost. So homeowners will pay more for a “green home,” but not shell out the big bucks for a more robust system. This reality might mean installing a moderate system that goes back to the grid for power during heavy usage periods (i.e. during the super hot, A/C necessary days).
Newer Systems Get You More
As with most tech, a newer system will bring home a higher resale price. As your system ages, it depreciates. There will be necessary replacement parts, and the system will get closer to the warranty cut off.
Michigan Solar Solutions brings solar options to Michigan’s residents and business owners. We have three sites across Michigan to serve our regional communities better. Give us a call to learn more about your solar options at our Southeast Michigan location at (248) 923-3456, our Southwest Michigan at (616) 855-5055, or our Central/Northern Michigan (989) 833-5333 or find out if Solar is Right for You by clicking here.