| Key Takeaways |
|---|
| Solar panels can increase your home’s value by 1-2% or more. |
| Every $1 in energy bill savings could potentially add $20 to the value of your home. |
| Various factors including location, solar market, and the type of system influence the added value. |
Does Solar Increase Home Value?
The short answer is yes, solar panels can increase your home’s value. Homes equipped with solar panel systems typically sell for more compared to those without them. This rise in home value can be attributed to the energy savings that solar panels provide and the growing popularity of renewable energy solutions.
How Much Do Solar Panels Increase Home Value?
Homeowners with solar panels can expect a significant return on their investment. On average, every $1 in energy bill savings can add approximately $20 to your home’s value. This means that if your solar system saves you $200 annually, it could add around $4,000 to the value of your home. Overall, homes with solar panels can observe an increase in value by 1-2% or even more.
Factors That Influence Solar Panels’ Added Value
Location, Location, Location
Location plays a key role in determining how much value solar panels will add to your home. Sun exposure, energy costs, and local regulations vary by place, impacting the financial benefits of solar power installation.
Solar Market
The solar market is another significant factor. In states where solar panels are more common and highly valued, you may see a greater increase in home value. The following table details the average installed costs for some top solar states:
| State | Average Installed Cost* (After Tax Credits) |
|---|---|
| California | $8,800 – $12,100 |
| Texas | $9,100 – $21,000 |
| Florida | $14,600 – $18,500 |
Owned vs. Leased Solar Systems
One crucial factor to consider is whether the solar panel system is owned or leased. Owned solar systems tend to add more value to your home because potential buyers are often reluctant to take over a lease. An owned system is a selling point, while a leased system can sometimes complicate the selling process.
Do Solar Panels Increase Property Taxes?
Solar panels can have implications for your property taxes, depending on where you live. Some states offer property tax exemptions for homes with solar installations, meaning the addition of solar panels won’t increase your property tax bill.
Solar-Related Property Tax by State
| States with 100% Exemption (unless otherwise noted) | States with Local Exemptions | States with System-Based Exemptions | States with No Residential Exemption |
|---|---|---|---|
| Alabama | Alaska | Illinois | Arkansas |
| Arizona | Hawaii | Nebraska | Delaware |
| California (until 2025) | New Hampshire | Tennessee | Georgia |
| Colorado | Ohio | Idaho | |
| Connecticut | Virginia | Kentucky | |
| District of Columbia | Mississippi | ||
| Florida | Nevada | ||
| Indiana | Oklahoma | ||
| Iowa (for 5 years) | Pennsylvania | ||
| Kansas | Utah | ||
| Louisiana | Washington | ||
| Maine | West Virginia | ||
| Maryland | Wyoming | ||
| Massachusetts (for 20 years) | |||
| Michigan | |||
| Minnesota | |||
| Missouri | |||
| Montana (for 10 years) | |||
| New Jersey | |||
| New Mexico | |||
| New York (for 5 years) | |||
| North Carolina (80% exempt) | |||
| North Dakota (exempt for 5 years) | |||
| Oregon | |||
| Rhode Island | |||
| South Carolina | |||
| Texas | |||
| Vermont | |||
| Wisconsin |
How To Save On The Cost Of Solar Panels
Solar panels are a significant investment, but numerous strategies can help you save on their cost.
- Federal Tax Incentives: The federal government offers tax credits for solar energy systems.
- State and Local Incentives: Various states and municipalities offer incentives that can help reduce the cost of installation.
- Solar Loans: Many companies offer financing options, allowing you to pay for the system over time.
- Group Buying Programs: Joining a solar cooperative can sometimes secure bulk purchase discounts.
Solar Panel FAQs
How Long Do Solar Panels Last?
Most solar panels come with a warranty guaranteeing that they will produce at 80% of their original capacity for 25 years. With proper maintenance, some can last even longer, continuing to produce energy for up to 30-40 years.
Can You Take Solar Panels With You When You Move?
While technically feasible, relocating solar panels is generally not practical. The cost and logistics of uninstalling, transporting, and reinstalling the system can be quite high. Most homeowners choose to leave the panels when they move, often benefiting from a higher home resale value.
With the growing interest in renewable energy and sustainable living, solar panels are a valuable addition to any home. They not only reduce energy costs but can also significantly increase your property’s value. By understanding the factors that influence this increase, you can make an informed decision on investing in solar energy.
