Solar energy is increasingly adopted all over the world, thanks to the many benefits it offers. Not only do you get to save on electricity and contribute to saving the environment, it is also cost-efficient in the long run. It is benefits like these that add up and give you perhaps one of the best financial advantages – increase in home value. In other words, if you go solar, and you have a solar-powered home, you can get much more money for your house should you ever put it up for sale.
According to a research by the National Renewable Energy Laboratory, for every $1 you save on energy bill from your solar energy system, the value of your home goes up by as much as $20. However, if you wish to go solar just for this reason, there are a few factors you should keep in mind which may also influence the value of your home. They are listed below:
- Location of your house
The location of your house, that is, the state you live in also play a crucial role in determining the increase in the value of your home. Usually, states which have an active and dynamic solar market, like Florida, California, and Massachusetts yield higher ROI (return on investments) when it comes to solar energy, compared to other states where the solar market is relatively underdeveloped.
- Size of your house
How big your house is, also plays a role in deciding how much your solar power home’s value increases. To put simply, the bigger your house is, the bigger the increase in value will be. But keep in mind that this is not such a huge factor compared to the other two. It represents just a small percentage of your total property value.
- Size of your solar installation
An imperative factor in determining the nominal boost in your property value, the size, and quality of your solar installation directly influence how much money you can get for your home. Therefore, make sure to always hire only reliable and reputed installer who is willing to help you and answer all your queries.
It should be noted that the exact numbers may differ from each home and solar installation. But as per a research from the Lawrence Berkeley National Lab (LBNL), every watt of solar energy increases your home value by $3, and $4 in the state of California. And with a 5 kW solar energy system producing 5,000 watts of solar power being the national average, the average solar power home should be able to hit the market for around $15,000 more in Florida and every U.S state except for California, where the number would be $20,000.
Drop in solar prices increases demand
Every year, solar prices are getting much cheaper, making the clean energy available service more easily accessible and affordable. In fact, according to Ben Gallagher, a well-known and reputed solar analyst, prices of solar energy technology construction will drop by 4.4 percent with each passing year. if his calculations are true, it means that by 2022, the price of solar will drop by as much as a staggering 27 percent. This makes solar energy increase in demand worldwide.
In addition to this, what makes solar power so alluring is that the federal government offers such great incentives to homeowners who choose to go solar. There is a whopping 30 percent tax incentive available for you.
Meta description: Considering solar panels systems installations in Florida? See how solar ownership can affect your home value.