Do Solar Panels Increase Home Value?
Looking to invest in your home? Interested in saving money on your energy bills? Searching for ways to reduce your carbon footprint? One possible solution that’s increasing in popularity is going green with solar panels!
However, solar panels are a commitment. Read on to learn how investing in solar panels can contribute to your home’s overall value and even save you money.
What Are The Benefits Of Solar Panels?
It Puts Money In Your Pocket
One of the clear solar panel advantages, of course, is the money-saving potential. A variety of factors—including how much direct sunlight your home receives, size and angle of your roof and electricity rates in your area—may contribute to a major decrease in your energy spending. You may also be eligible for state and federal rebates, which may put a big chunk of the upfront installation costs back into your pocket.
It Extends Your Roof’s Lifespan
Solar panels can also extend your roof’s life span by serving as a protective barrier from the elements, which is a major plus for those living in snowy, rainy or otherwise unpredictable climates.
It Reduces Your Carbon Footprint
Financial advantages aside, solar panels are one of the most effective ways to reduce your home’s carbon footprint.
Traditionally, homes rely on fossil fuels like coal or natural gas for power. Fossil fuels produce greenhouse gas emissions and air pollution, making them bad for our planet’s health and our own. Plus, fossil fuels are finite resources, meaning that their prices are constantly fluctuating.
Solar panels draw energy from the sun and are never at risk during droughts or heat waves the way traditional energy systems might be.
What Are The Drawbacks Of Solar Panels?
In short, your living situation decides how effective solar panels are. The upfront cost of solar panels is a definite drawback for many, which is why it’s important to understand your financial options.
The average 10 kilowatt (kW) solar panel installation usually lands in the $15,000 to $25,000 range before tax credits, a total that’s decreased by 20% over the past five years! Additionally, not every home is equally suited to reap the benefits of a solar energy system.
While solar panels can still harness energy in overcast environments, homes in low-sunlight parts of the world (such as Canada or Russia) or areas that frequently get rain (such as Hawaii or England) may be at a solar disadvantage for optimal energy.
Ways To Install Solar Panels
Once you’ve assessed your situation and determined that solar panels are the right fit for your home, now comes the exciting part: installation! Be warned, though: this is not a DIY project for the faint of heart.
In fact, many may feel most comfortable seeking out a professional to get this job done. Solar panel technicians can handle the entire process for you, and they’ll start by determining the type and number of panels that are right for your home.
Experts suggest selecting solar panels based on a few criteria including solar production capacity, durability and overall manufacturer quality. In other words, this is not an expense you want to cut corners on. You’re likely to get the most bang for your buck if you choose high-quality solar panels that will last you well into the future. Don’t skimp on technicians, either; make sure to research your options to ensure that your panels get installed by reputable and experienced professionals.
Here are the steps installation professionals typically follow:
1. Find The Right Location For The Panels
- Where is the most sunlight?
- What’s the right angle and direction for the panels to be placed?
2. Build The Panel Platform
3. Construct Using Metal Or Aluminum Rails To Withstand Weather
4. Mount! Those! Panels!
- Use bolts, brackets or clamps to ensure that the panels are safe and secure on their platforms
5. Complete Wiring, Grounding, Connecting And Testing
- Get the panels up and running!
Though it may seem daunting, most solar panel technicians can get the installation job done in one to three days. You may even be able to consider it a weekend project!
Locations Where Solar Panels Add The Most Home Value
We know that solar panels may not be the right fit for homes in every single climate or housing market—but who will reap the most benefits?
Thanks to Google’s Project Sunroof tool, homeowners can simply input their address and receive an estimated home value increase, calculations of both monthly and long-term bill savings, and a breakdown of their potential environmental impact.
According to a 2019 Zillow analysis, homes with solar power sell for an average of 4.1% more than similar homes without solar power. While the actual added value varies based on your local housing market, solar panels may be just what your home needs to stand out among buyers.
If you live in New York, NY, Orlando, FL or San Francisco, CA, you’re in luck. Zillow estimates that homes equipped with solar panels in these cities see value increases of 5.4%, 4.6% and 4.4%, respectively.
How Much Do Solar Panels Save?
To understand how much money you can save on your energy bill by transitioning to solar energy, you first need to know how much you spend on energy each year. As of October 2020, the average American household spends around $1,450 on electricity each year. Remember, traditional energy sources are always fluctuating in price due to the finite nature of fossil fuels.
Month-over-month energy bill savings will vary based on several factors including your home size, location and climate, but ultimately, you’re likely to see long-term savings in the form of tax credits, lower costs and increased resale value.
So, Are Solar Panels Worth The Investment?
While no one can wave a magic wand to determine the perfect renewable energy source for their home, many find that the long-term financial and environmental benefits of solar panels are worth the upfront costs and do add value to their home. However, it’s up to each homeowner to assess their specific needs, preferences and priorities!
That being said, if you’re interested in reducing your carbon footprint and increasing your home’s value, but are unsure about how to cover any initial costs, consider applying for a home improvement loan from Rocket Loans today.
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