LEARN HOW SOLAR INCREASES HOME VALUE
A proven investment.
HOW SOLAR INCREASES HOME VALUE
Solar is actually one of the best investments you can make to increase the value of your home. Virtually no other renovation or enhancement to a home increases its value so substantially.
Plus, it’s an enhancement that produces power and income until you sell the home! Solar is the only home improvement project we know of that not only improves the resale value of your home, but pays for itself along the way.
Also, the property value increase you get from solar is does not increase your property taxes.
Numerous studies show that your solar PV system pays for itself in added value to your home—as soon it’s installed.
In January 2015, Lawrence Berkeley Laboratory released an update to its previous two landmark studies on solar and home prices. Appraisers found that home buyers consistently have been willing to pay more for homes with host-owned solar photovoltaic (PV) energy systems.
The average increase in home value was about $4 per watt of solar PV installed. This was true regardless of state, housing market, solar PV market, and home type.
Lawrence Berkeley Laboratory’s previous findings, in 2013 (for the U.S. Department of Energy’s SunShot Initiative) analyzed data from over 70,000 properties in California to determine how solar affected property value. The study showed that, in the California market, every kW of solar equaled over $5,900 in added property value.
Although each year the system’s age depreciated this value by 9%, solar systems do not depreciate as quickly in the Northwest because of the high demand and relative novelty.
Another recent study offering side-by-side comparisons of solar homes with similar non-solar homes suggested that, on average, a buyer is willing to pay about $15,000 more for a typical house with a 3.6kW solar system.
And the recent Institute for Market Transformation’s “What is Green Worth?” study found that a house with solar sold for a price between $17,000 and $36,500 higher than a house without.
Finally, an older 1998 study by ICF consulting, funded by HUD and the EPA and published in The Appraisal Journal, found that energy-saving measures such as solar can add up to $20 of home value for every $1 of annual energy cost savings.
All of this research makes it clear that solar is a premium real-property investment in your home. And the bonuses are significant: it offsets energy bills/produces income through incentives, and reduces your carbon footprint. It is one of the most environmentally supportive home investments you could make.
Think about the average kitchen remodel: nationwide, such a renovation costs $50,000-$100,000—yet it does not produce power, offset energy costs, or create income in the form of incentives. Nor does the federal government reduce your tax bill by 30% of its cost in the first year. And while it may give your home more “curb appeal,” it does not substantially increase your home’s value in actual dollars.
Every Artisan proposal includes a table illustrating how each of the proposed systems would increase your property value. It also quantifies value with depreciation over time. We calculate these values over the industry median solar module warranty period of 25 years.
Want to learn more about your home’s value and solar? We love to answer questions! Contact us.