Solar power is one of the best modern home upgrades and is widely available to homeowners. Panels can be added to the roof on your home, providing an affordable source of renewable energy that will pay for itself in the long run. Solar power will lower your monthly energy bills, saving you money while also having a positive impact on the environment. In addition to saving you money on a monthly basis, it is highly likely that solar increases the value of your home.
What effect does solar have on your home’s value, and how can you take advantage of it? This post will explore everything you need to know about how solar increases equity of your home.
Why Does Solar Increase Home Value?
There are many ways to improve the value of a home, and many of these options are additive after initial construction has finished. This means that you will be adding something to the existing structure, like a driveway or porch, to make the place worth more in the eyes of potential buyers.
Solar panels are a smart addition to any home. Everyone can use them, they don’t require intensive upkeep, and they aren’t an eyesore. Solar is attractive to a future homebuyer because they aren’t directly responsible for the initial installation costs and process but will see cost savings on their monthly electric bill.
How Much Will Your Home’s Value Grow?
It can be hard to predict how much your home’s value will increase when you decide to start using solar panels as there are multiple factors that determine the actual dollar amount.
According to Zillow, in 2018 homes with solar energy systems sold for an average of 4.1% more than their counterparts without solar. The market is extremely variable, though, with some locations seeing price increases of just 2.7% and others seeing numbers as large as 5.4%. It can be difficult to figure out how much you could stand to gain from solar panels, but a good solar provider will be able to help you crunch the numbers.
Take the time to research or contact a full-service solar company to discuss the value-add of solar on your specific home before treating solar panels as an investment. Ensure that you will be able to increase your home’s equity enough to justify the cost of the panels.
Home Equity Increase Factors
- Location: Solar panels are a lot more popular in certain states compared to others. For example, in Utah over 350,000 homes are powered by solar, whereas in Oklahoma around 8,000 homes are powered by solar. In areas where the solar market is well developed you will see the larger increases in home value by adding solar.
- Installation Size: The number of solar panels you have on your roof will also impact the equity increase; the right number of panels for your home will provide a high savings to investment ratio. A few solar panels might not be attractive enough to potential homebuyers interested in utilizing solar energy.
- Home Value: Larger and more valuable homes will often see a higher nominal boost in property value. This is largely because they have space for more panels. This will usually represent a low percentage increase in home value, but the actual dollar amount of the increase itself will be more than for a less valuable home.
It’s hard to say exactly how much your home’s value is likely to grow when you decide to have solar panels installed. However, you can confidently move forward knowing that this method of energy generation is versatile and well-known, making it attractive to the energy-conscious.
Why Choose Mynt Solar?
Mynt Solar is the best solar company in Utah. The Mynt Solar team has worked for years to provide solar systems to homes in your community. Their experience and commitment to simple solutions can help you to determine how to best increase the equity of your home by adding solar.
As full-service solar contractors, Mynt will be there for you during initial installation and into the future, offering advice and further improvements that can be made to your solar system so you see a maximum increase on the equity of your home. Contact Mynt Solar today for a free in-person or virtual solar consultation.