Do Solar Panels Increase a Home’s Value?
Yes! According to Zillow, homes with solar panels sell for an average of 4.1% more than homes without solar panels. Their data looked at home sales in various cities around the United States and showed homes with solar panels in Orlando, Florida, sold for 4.6% more. Adding solar panels to a Florida house is a smart investment.
The Benefits of Solar Panels
Not only do solar add to your home’s value, but they also offer several other benefits for homeowners.
Lower Energy Costs
One of the reasons solar panels increase home values is the potential energy savings. Homeowners save monthly on energy costs. Homeowners may even receive a payment for extra energy produced.
Environmentally Friendly
As climate change impacts our local communities with extreme weather, many homeowners desire to implement green strategies into their homes. Solar panels reduce the dependency on non-renewable resources that harm the environment.
Tax Incentives
Installing solar panels may offer federal or local tax benefits. In Florida, the cost to purchase and install solar panels is exempt from sales tax.
Meet Regulations
Some areas of the country have changed code requirements to require solar for new builds. Check your local codes for regulatory requirements and incentives for adding solar.
Adding solar demonstrates social responsibility as well as a wise financial investment.
What Do Solar Cost Savings Depend On?
Solar panels work differently under different circumstances. For example, homeowners with a clear view of the sun collect more energy than a home covered with shade. However, other factors also influence cost savings.
The amount of electricity your household consumes
The number of solar panels and size of your system
Whether you purchase or lease the solar panels
The total daily sunlight the solar panels receive
The angle of the roof and overall size of the roof
The cost of your local energy rates
When deciding whether solar panels are suitable for your home, research these factors to determine your cost-to-benefit ratio. Not all homes will achieve the maximum benefits from solar panels.
Is It Wise to Add Solar Panels Before You Sell a Home?
While solar panels offer many benefits, adding solar panels before selling isn’t the best plan. The cost to purchase solar panels outright ranges on average between $12,000 and $21,000 depending on the size of the system. Even with the added home value, the seller likely wouldn’t recoup their cost.
If entering a lease for solar panels, the buyer may not want to continue the lease. Transferring the lease can add complexity to the closing procedures. Also, some real estate agents don’t fully understand the solar panel process.
Instead, upgrade other areas of the property to attract buyers. For example, painting, staging, upgrading appliances, and adding innovative home features would bring immediate benefits to the sales process.
Solar panels offer cost savings and home value if you plan to live in your current home for a while.
Invest in Your Home
At Kenco Home Inspections, we believe homes make an excellent investment. Upgrading your home with solar panels benefits the environment and your wallet. Good home maintenance also helps maximize home values.
We offer home inspections for homes in Southeast Florida. Contact us today with questions or to schedule a home inspection.