Sometimes, homeowners have to sell their homes for some personal reasons. For instance, they may be moving states, or they simply want to move to a bigger house. Regardless of what the reason is, when people want to sell their homes, they want to make sure that they get a great deal out of the sale.
This is one reason people add some features to their homes to make their value increase. However, increasing value is completely different from adding extra expenses to it. Extensive landscaping or swimming pools are just costly upgrades that will make buyers go “wow” but won’t make a tangible impact on the house value.
Why is this the case? Why do some costly upgrades leave homeowners with poor ROIs? The answer is simple, subsequent owners of the home have to spend money on maintaining these features. So, you have to be careful when trying to increase your home value. Read this article that discusses 5 sure ways to increase your home value.
One feature that is sure to move the value of your house up is a solar energy system. The reason this is different from other costly upgrades is that the new owner will enjoy all the benefits of the solar system without spending much (especially if it’s an on-grid system) on maintenance.
A lot of homeowners might know how beneficial solar power systems are and how beneficial it is to the environment. But a common question among people that are considering getting this feature in their home is whether or not it will increase their home’s value.
As we have already said, the answer to this question is yes. Below we will take a closer look at this home feature and how it can influence your home’s resale worth.
How Much Value Can Solar Systems Add to A Home?
There have been several studies on the amount that can be added to the price of a home with a solar unit installation. According to one study, about 5,911 dollars can be added to the house price for each kW of PV panels installed. Another study estimated that the worth of the house can be increased by 4.1 percent.
These figures are simply estimates and may either go up or down based on certain factors like location. For instance, in some locations like New York, the worth can go up to about 5.4 percent.
But in some places like Riverside, California, it could be as low as 2.7 percent. Visit https://www.cnbc.com/ to find out how much value solar can add to your home based on its location.
It’s worth mentioning at this point that the money you’d spend on getting and installing the panels is quite small when compared to the value it adds to your house. So, if you’ve been dragging your feet about getting this installation done, then perhaps this is the wakeup call you need.
How Solar Systems Increase the Value of Houses
Yes, installing a solar system in your home will make it more expensive on the market. But the big question is; how does it achieve this?
One major reason why the worth of your home is improved when you add this feature to it is that it meets demand.
Most buyers specifically look for homes with solar panels as well as other energy-saving features when they go house hunting. Apart from green living, the upgrades address 2 priorities home buyers have:
- Saving money on power
- Managing and/or controlling energy costs
Most homebuyers now are not just budget-conscious but also care about their carbon footprint. Even people that do not care much about their impact on the environment will be drawn to the idea of saving energy and controlling their energy costs.
However, the demand may be higher or lower in some locations and this ultimately influences how much worth will be attached to the house. If people in your locale aren’t that knowledgeable when it comes to solar energy, chances are the demand won’t be high.
Factors That Affect the Value Added
- Location: Electrical costs vary between communities. If the electrical costs are higher, then the demand for this renewable energy will be more. Location can also contribute to the worth in the aspect of how much sun exposure the locale gets. If sun exposure isn’t adequate in the location, solar energy most likely won’t be anyone’s go-to.
- System Output: If you have a bigger system that generates more energy, the value it’ll add will be higher.
- Installation Prices in the Area: if getting a new unit installed is more expensive than buying a house with a unit already, most people will opt for the latter. This will in turn increase your home’s worth.
- System Age/Replacement Value: If your system is old, then the value it’ll add most likely won’t be a lot. This is because the new owner will have to repair and even replace some of its parts soon. Another affecting factor here is how difficult or expensive getting the system’s part is.
Is Solar Panel Installation Right for You?
As you consider whether this installation is something you should do or not, one thing to reflect on is the overall impact it’ll have on your property. Two important factors to consider in this case are:
- Your monthly electrical cost: If the amount is very high, then investing in solar energy will be a better choice.
- Your property’s sunlight exposure: Some houses are positioned in a way that makes installing this energy source a great choice. If your house is angled to properly harness sunlight, going solar will be a great idea.
You can check Solargraf to get answers to questions on whether or not installing solar panels is right for your home.
Conclusion
Some people feel that installing solar energy systems in their homes can harm the house’s resale value; however, the opposite is the case. Getting a solar system in your home can boost its resale worth by about 4.1 percent. This is especially true if the system is highly effective and your location has a high demand for this source of energy.
