California is one of the leaders in renewable energy resources. While the rest of the country is following suit, not every state or city is as passionate about solar and other renewable energy sources. This means that not every homeowner across the country would necessarily add property value by installing solar panels on their home.
The good news? The Bay Area is one of the most popular areas for solar panels. Whether you live in Sacramento City or San Francisco, having solar panels could be a great investment if you are looking to add value to your home.
How Going Solar Can Benefit Your Property Value
Sure, you’ve heard that adding solar panels can be a great boost for a home, but does it really add any property value? According to a study done by Berkeley Lab, potential homeowners have been showing a willingness to pay a higher price tag (floating around $15,000 or more depending on the size of the system) for a house with an adequate solar panel system.
While buying a solar system is a big investment, the savings on utilities, reduced carbon footprint, and added monetary value to a home make it an attractive upgrade. Just like a remodeling kitchen or backyard addition, solar panels are seen by potential home buyers as a distinguishing factor on the market. In fact, in a past study, homes in California that had energy efficient features, such as solar arrays, were actually found to sell faster than those that were not as efficient.
Some factors can impact the solar value added to your Bay Area home:
- The production and quality of your PV panels (i.e. how much sun they get and brand name)
- The size of your solar installation compared to the size of your home
- The overall energy efficiency of your home
- Whether you own the system outright or are leasing it
- The starting value of your home and current market price
It is important to note that just leasing a solar panel system will likely not add value to your home at all. On top of that, it can be difficult to transfer the lease to a potential buyer, so make sure to consider your financial situation and options when it comes to your solar investment.
Deciding if Solar Panels Are Right for Your Home
If you are simply looking for a way to add value to your property for a quick sell, solar panels won’t necessarily be the simplest or even most beneficial option. However, if you are planning to invest in solar panels so that you can reap the benefits of saving on your utility expenses and have your panels paid off or significantly covered, going solar could bring a nice boost to your property value. Down the road, if you decided to sell your home, you could expect to benefit from having solar panels already installed.
Still have questions about the value solar can bring to your home? Semper Solaris is here to provide more insight. Give our experts a call today to learn more.