Rooftop Solar makes a lot of sense for homeowners financially and not only as a standalone investment. It also adds great value to the home according to several independent estimates. This is because a buyer of a house with solar will be instantly offsetting their electricity bills, and more and more, homeowners are wanting to do their part to combat climate change as well as take control of their energy security. In order for all of this to work, however, it is very important to own the solar system, rather than lease it. Read on to find out more about how much value solar adds to the home.
How Much Value Does Solar Add?
According to the National Renewable Energy Laboratory, every dollar that your solar system saves you on electric bills increases your home value by $20. This varies state by state, and Arizona is one of the places where solar systems are the most valuable with Phoenix being one of the cities with the highest demand for solar in the US (Forbes). This applies to all size systems since the added value is in how much money the house saves and not how much energy it generates.
In 2019 solar was found to increase home value by 4.1%, or by an average of $9,274 according to Zillow. The Office of Energy Efficiency and Renewable Energy puts this number at $15,000. Wherever you put the number, it is clear to see that solar adds value. Who can say no to avoiding electric bills?!
Other Reasons for Added Value
Solar also adds value to the home because of folks’ increased desire to combat climate change. Recent wildfires, heat waves, and other events, both local and global, have increased homeowners’ desire to make a personal difference. Homeowners can also increase the added value of solar by making their homes as energy efficient as possible. A more efficient home will reap the most savings from their solar (Solreliable).
Finally, solar also adds value to the home in that the new homeowners have increased control over their energy production and use. This concern has increased exponentially as utility companies pass more and more of their cost on to the customer. What’s more, the interest in energy control has skyrocketed with the feasibility of solar batteries.
The Importance of Ownership
In order for all of this to work, it is important to own the solar system rather than lease it. Companies like Rooftop Solar which enable you to own the system outright are giving you a boost to increase home value, whereas companies that lease the system to you are giving you a burden when it comes time to sell. Solar leases are notoriously hard to get out of let alone pass on to a new homeowner. Doing so requires their buy-in and their credit to be good enough, and many home buyers will be turned off by the lease rates. In many cases, the buyer will be saving far less money than they would with a solar loan or purchase. This may leave many purchasers feeling like they are buying a home with solar but without the actual benefits.
For this reason, there has been a misconception in the real estate industry that solar is bad for home sales when in reality this is only the case with a solar lease. As in almost every other case, this is just another example of it being extremely important to own the system rather than to lease. When it comes time to sell with a purchased solar system, the home buyer will be buying a home with free energy. In cases where the solar loan is not yet paid back, there is no early payment penalty for the Rooftop Solar loan, and any remaining loan balance can be added to the asking price of the home and then some.
Overall, there is a great added value to the home from solar. Purchasers will be incentivized by no electric bills and will be able to do their part to fight climate change. It is very important to own, not lease, the system, however, and this explains why there have been some misconceptions about the topic in the past. Whether you are thinking of selling soon or not, find out how much value solar can add to your home today! Enquire here.