Does A Solar Roof Increase Home Value?
If you’re thinking of getting solar panels, the money factor is a big consideration.
While solar panel/roof costs have dropped a lot over the past 5 – 10 years, they still are not cheap. The average cost of a solar panel system for a home in the US is currently in the $10,000 – $15,000 range.
For a solar roof, you are looking at more than that. Solar roofs generally cost somewhere between $15,000 and $50,000 depending on the size of your roof, where you live, etc.
But the “costs” of a solar roof should be thought of as an investment. Because installing a solar roof can result in big cost savings for a homeowner. In fact, some homeowners could easily save $10,000s over the years by installing a solar energy system.
The most obvious way they do this is by reducing, if not eliminating, your electric bill. But they can improve your financial situation in other ways as well.
One way people wonder about is the effect a solar roof has on home values. So, does a solar roof increase home value, or is that just some marketing fluff solar roof companies use to get people to buy?
Let’s dig into this below so you know what to expect.
Does A Solar Roof Increase Home Value?
The short answer to that is yes. The installation of solar panels will very likely increase the value of your home.
Most of the info out there on this topic is focused on solar panels. However, we think it’s a fair assumption that this applies to a solar roof as well.
According to the National Renewable Energy Laboratory, each dollar saved on energy costs by going solar will add about $20 in value to the market value of your home. That’s a pretty salty ROI right there!
Solar panels can raise the value of your house since they provide a financial benefit to homebuyers. As previously said, solar panels can drastically lower the cost of power bills. And that is an excellent offer if you are in the market for a home.
Home Buyers Want Solar Panels
Another advantage of solar panels for homeowners is that they provide a sense of contribution to the environment. And this is accurate, as solar panels have a net positive impact on the environment compared to fossil fuel use.
And it is for these reasons, among others, home buyers are more interested in purchasing a property equipped with solar panels.
How Much Does Solar Increase Home Value?
Along these lines, a recent Zillow analysis found that homes with solar panels sell for a little over 4% more than homes that do not.
While the study found the average home with solar in the United States increased in value by 4.1 percent, the increase differs by location.
The survey found that homeowners in New York saw an average 5.4 percent (a $23,989 premium on a $440,400 home). In San Francisco, it was 4.4 percent (a $41,658 premium on a $955,200 home) and in Orlando, Fla., it was 4.6 percent ($10,994 premium on a $368,300 home). These areas stood to gain the most from solar panel installation.
While the value of solar panels varies by location, according to Zillow, no metropolitan region has seen a decline in property values due to solar panels.
Installing solar panels increases the market value of a home by an average of $4,020 for each 1kW of panels added. The boost in resale value can reach approximately $50,000 for bigger kW units.
Can Having Solar On Your Roof Hurt Home Value?
However, it is not all sunshine when it comes to selling a home equipped with a solar panel. In some instances, a solar panel may be detrimental to the sale of your home.
For instance, potential purchasers may be uninterested if your solar panel is an older model system. Buyers are more interested in newer solar panels since the technology is more advanced, and the panels will provide more benefits than earlier panels.
Also, if you lease your solar panels, that can cause issues when you go to sell your home.
Overall, however, solar panels will help increase the value of your home. But every situation is different, and the increase in home value can differ depending on where you live and your specific situation.