Does Solar Power Pay Off?
If you own your home you probably have made some upgrades to it at some point. Home remodels and modifications are some of the most fun parts of owning a home. You don’t have to worry about changes a landlord won’t agree with and you can modify things to your personal preferences which are great.
Some of the remodeling or upgrade choices you make, however, should probably be made with the future in mind. There’s a high likelihood that you won’t live in your home forever so making improvements that will add to your home’s resale value is always a good idea. Sometimes it’s hard to know which modifications or upgrades will give you a return on your investment though.
If you’ve been considering making your home a little more “green,” something that will pay off is adding solar electric panels to your home. According to research done on the housing market by Zillow, homes with solar panels are now selling for about 4.1% more than homes that don’t have this particular upgrade.
This research is even backed by the Solar Energies Technology Office, which states homes can sell for up to $15,000 more if they have an average-sized solar electric system installed. Homeowners can also expect their houses to sell faster than homes without solar panels which is good news for anyone trying to sell their house.
Why Do Solar Panels Add So Much Value?
The reasons solar panels add value to a home vary depending on who is looking to buy the house. Some families are aware that they use a lot of energy and are willing to pay more upfront to save money in the future. They know that their electricity bills are already high and they’re looking for a way to reduce those costs.
Other families or potential buyers are more interested in homes that are environmentally friendly. Solar panels are a popular way people choose to reduce their energy consumption and become a more green-friendly household. It’s something that’s accessible and easy to implement into a family’s everyday life.
If you’ve purchased your solar panels instead of leasing them this can be especially enticing to buyers. They know that they won’t have to pay for the installation costs that often are the most prohibitive factor in a family deciding not to have solar panels added to their current home. If a buyer has already wanted to have solar panels and is aware of the costs for installation they will purposely seek out a home that already has panels installed.
What Should You Know About Having Solar Panels Installed?
Solar panel installation comes with some benefits you should be aware of. This home upgrade can start benefiting you before you even consider selling your home. There are upfront costs, obviously, but sometimes those can be offset by programs out there to incentivize homeowners to use solar energy and have solar panels installed.
First of all, solar installations come with tax benefits. You can get 30% of the entire system cost back as a tax credit the year you have your solar panels installed. So, if your solar system costs you $25,000 you can expect to get a $7,500 tax credit for having the panels installed on your home.
What Should You Know About Selling Your Home If You Have A Solar Electric System?
A buyer is going to want to know right off the bat if you’re leasing your solar panels or not. If you aren’t leasing them you’ll need to expect to pay the loan off before you sell your home. The panels will be the property of the new homeowners but you won’t be able to pass a loan off to them so you’ll need to be prepared for that.
If you’re leasing your solar panels the new buyer will need to know the details of the lease. Be ready to answer questions like the monthly cost of the lease and the length of the lease as well. If there are caveats to the lease that the new buyer should know about be ready to disclose those and make sure they’re well versed before the sale is final.
If your solar panels were purchased with a PACE loan this is something potential buyers should be aware of. They’ll probably already be ready to ask about that but it’s something you should understand too. Since a PACE loan does transfer to the new homeowner because it’s attached to the property instead of a person, it’s something buyers will want to know about.
Having solar panels installed on your home is an upgrade that really is going to pay off. You will be making money on the sale of your home because of the panels. You’ll also be saving money and getting tax benefits while you live in your home and use the panels yourself.
Having solar panels installed isn’t as complicated as a lot of homeowners initially imagine. The installation process is usually pretty smooth and quick once you know how you’re going to pay for everything. Full system monitoring can be included in the installation in order to track your system’s energy production and allow you to track your investment.
If you’ve been considering making an upgrade to your home and you haven’t been entirely sure where to start, solar panels are a great option. It’s an upgrade that’s minimally invasive to your home and daily life and offers quite a few huge benefits. It will take some research to make sure you’re up to date on everything but it will be well worth it in the end.