While homeowners often focus on the initial installation costs of solar panels, many who are considering this renewable technology forget to consider just how much it can boost their homes’ resale value when they decide to sell their home with help from www.imsold.property. The truth is that solar panels do not merely help to sell a home in a tough housing market. They also provide extra value when it’s time to sell your property. Let’s take a look at exactly how much value it can add to a home.
Solar Panel Facts & Figures
A National Renewable Energy Laboratory (NREL) study shows that home values increase by nearly $6,000 for each 1 kW of solar panels installed. The value increases all the more as the scale of the solar panels is increased. 5 kW solar panels installed onto a home will add nearly $30,000 to a medium sized home’s value. Yet these numbers merely represent today’s values. When energy costs increase (which they are likely to do), solar panels will add even that much more value to a home. It is trending towards a tipping point that we’ll reach within the next couple of decades. This is nearly a foolproof, risk free investment as it is an investment in the future. The sun isn’t going away any time soon but other sources of energy are certainly finite.
The U.S. Department of Housing and Urban Development cites a report from the National Renewable Energy Laboratory which states that the value of homes with solar panels increases an average of $20 for each $1 saved on annual utility costs. The report also indicates that the homeowners see a proportional increase in home value according to the size and quality of solar panels that have been installed. So, the more solar panels that a home has, the higher its value will be.
Solar Panels Facilitate The Home Selling Process
Aside from boosting a home’s resale value, solar panels also help homes sell quickly. The NREL study referenced above states that homes with solar panels sell 20% faster than properties that lack it. There are plenty of homeowners out there who are holding on to multiple houses in the hopes of receiving an acceptable offer. Nobody wants to wait out a poor housing market for months or even years. A home equipped with solar panels will prevent this nightmare from coming to fruition. Homeowners in liberal pockets will be able to sell their homes especially quickly as the left wing, liberal demographic is always on the lookout for green homes and they are willing to pay a pretty penny for them.
The Ultimate Home Improvement
Plenty of readers are probably questioning whether the up front cost of solar panels is worth it. You might be wondering, “What if I don’t intend to sell my house?”. While it is true that solar panels require a sizable investment, the tax credits, rebate programs and the significant increase in the home’s resale value empower homeowners to recoup the initial cost of the panels. The National Bureau of Economic Research states that once the subsidies and energy savings are accounted for, homeowners who went the solar route will have recouped 97% of their initial investment.
Yet even if you don’t sell your home, the solar panels will provide a generous return on the original investment that adds up quickly over time. On average, an investment in residential solar typically pays for itself in 6 years. So if you plan on remaining in your house for more than 6 years, not only will you recoup the original cost, but you’ll receive a return on your investment.
Add on the incredible boost to the home’s resale value as cited above and you can see why they are so popular. There are very few home additions that pay for themselves and then some. For example, Hanley Wood’s 2010-2011 Cost vs. Value report states that a luxury kitchen remodeling job will provide homeowners with merely a 60% payback.
An Unparalleled Investment
Some industry experts state that homeowners who do their research and install the right sized solar panels will see over a 200% return on the original cost. This is a better return than almost any other investment available. Most people think that all they need to do when it comes to increasing their house value is getting the right furniture in it first to try and get it to appeal to potential buyers. For example, some people only care for the mattress sizes in their house. However, there are more important things to consider when trying to sell your house. It is difficult to find any stock market analyst or any financial vehicle that will be able to provide a 200%+ return over several years. This is the perfect selling point for any home. Even if you decide to move to a new home immediately after installing your solar panels, you’ll be able to advertise your home well above normal value because you’ll have one of the few energy efficient homes available on the market.
