Need another reason to install solar panels on your home? Solar increases home resale value. According to a recent study by Lawrence Berkeley National Laboratory, homes with PV systems in California have sold for a premium of approximately $3.90 to $6.40/watt. Put into layman’s terms, this corresponds to an average home sales price premium of approximately $17,000 for a relatively new PV system.
The lead author of the research, Ben Hoen, describes, “These average sales price premiums appear to be comparable with the average investment that homeowners have made to install PV systems in California, and of course homeowners also benefit from energy bill savings after PV system installation and prior to home sale.”
As you might have guessed, this is not the first time this topic has been covered. The American Solar Energy Society points out that in 2008, Barbara Farhar had an award-winning SOLAR TODAY article about the resale value of net-zero-energy homes in Southern California, and in 1998, Andy Black of OnGrid Solar, sought to establish that a home's value increases due to energy-efficiency improvements.
The current Berkeley Lab study surpasses previous work in its breadth, methodical research and timeliness. This study looks at home values after the downturn in the housing market. Thus proving that even in current economic times, homes with solar systems have a higher value than those without. One limitation to this study is that it only takes into account houses in California. Conducting a similar study in a larger geographic region may reveal different trends. Regardless, this is a positive step for solar energy and the general public!
Read more about the study here.
Want to learn about the value of solar homes in your region? Contact ISEA! You can also register for one of our PV classes and decide if it is right for you.
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