According to a recent study by the Lawrence Berkeley National Lab (LBL), the installation of panels for solar power generation can cause a major appreciation in the value of your property. A report titled “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes”, says that in California, the homes that have panels for solar energy are more expensive than others that do not.
Is value added to a house because of panels for solar?
Panels for solar power increases home value. If you are considering buying a solar power generating system for use in your home, the information found in the LBL study will show you that a reasonable investment is being made. The LBL study discovered that homes in states including California, Connecticut, Maryland, New York, Massachusetts, Florida, and Pennsylvania with solar panels enjoy benefits from a ‘solar premium’ if sold as a result of the willingness of buyers to pay extra for homes with solar panels.
What value does solar power add to homes?
Example: A 5 kilowatt (KW) system of solar (the nation’s average) offers power worth 5,000 watts. LBL declares that each solar watt adds approximately $4 to the value of California homes and approximately $3 for a unit watt in other states. Hence, solar homes ought to be sold for approximately ($4 x 5,000W =) $20,000 higher in California or ($3 x 5,000W =) $15,000 higher outside of California.
Potential buyers who consider whether panels for solar power appreciate the value of homes was pleasantly surprised. The amazing thing about the figures is their closeness to what a brand new solar system can be purchased for today.
Our price analysis of a system of solar of 6KW in California shows many of the more costly systems are above $4/W. And be conscious that you would pay for the cost before taking the magnanimous 30% incentive of federal tax which is available
Cheaper power from solar is your optimal investment in California
The feeds state that the distinction between the California premium panels for solar and non-Californian states is ‘not significant by statistics’: Premiums that are lower may be as a result of “estimates of income and net costs that are lower” that are in other states. In other words, non-Californian states premium deals with installation of solar prices and rates of electricity that are lesser instead because the valuation of solar there are lower.
All these imply that if your house is sold quickly after the installation of a system of solar, most or every of your investment will be recouped while money from your bills of power is saved. This is a confirmation of what we have stated earlier: Power from solar system’s periods of payback is not something of excess concern.
Either the value of your home will be significantly increased by your system of solar if you make the decision to sell your house off, or by itself, it would pay off through the savings of power bills, before moving out. In either case, a good investment is solar.
Other fascinating points in the feeds include:
- The premium for solar for homes that are newly built was a little bit lower than homes that are older, showing that installations of solar that are retrofit are equivalent to systems that are built into the house.
- Homes with bigger systems have a smaller $/W premium, showing the possibility of an effect which is known as ‘green cache’. As stated in the report, “Purchasers may be desirous to pay a specific amount for owning a PV system of any size on their homes and increment that is more dependent on the system’s size”.
- The writers propose that homes which opt for solar via leases or programs of PPA should be future research areas; the recent study scrutinize only homes that have systems that are owner-owned.