How does a solar panel system affect my home value?
Solar panels are valuable technology that drastically reduce your energy bills over time, so of course that affects your home value and in a good way! A solar array is a safe investment that can increase the value of your property. Homes with solar panels offer guaranteed benefits to future owners, such as saving money on electricity, so most buyers are willing to pay more for a house with solar.
While a solar array is incredibly valuable, the way they impact home value differs based on whether the panels are owned or leased. Here is the breakdown:
If you own your solar panels:
Many solar systems, especially well-maintained or newer ones, actually increase the value of a home by an amount close to their original purchasing price. This means that solar owners who took advantage the rebates available can make money off selling a home with panels, in addition to the money they already saved on electricity.
There are a variety of accepted valuation methods to use when assessing the value of an owned solar system. The most common method follows what the industry calls the Sales Comparison Based Extraction Model. This method calculates the value of your solar system by comparing the sales price of similar properties without a solar system and those with a solar system.