Solar panels are quickly becoming attractive for homeowners looking to increase property value or save on electric bills. They harness the energy from the sun and convert it into usable electricity. Investing in solar panels can help you get a long-term return on your property investment through savings on monthly energy bills and increased home value. Friar's Heating and Air offers solar panel installation in San Diego, El Cajon, Chula Vista, and the San Marcos, CA area.
Factors Influencing Solar Power’s Additional Value
According to the National Renewable Energy Laboratory (NREL), your home’s value increases by $20 with every $1 your solar panels save on electricity bills. Moreover, Zillow reported that solar homes have higher market prices than those without solar panels.
With people’s increased awareness of environmental issues and the desire to cut utility costs, solar panels have increased in demand. Solar homes are becoming quite popular with the increased demand, thus appreciating. However, the occurrence and magnitude of the value appreciation depend on the factors discussed below.
The value of a house with a solar panel system varies depending on the home’s location. States with a burgeoning solar market promote solar power adoption among homeowners by introducing beneficial laws and incentives regarding renewable energy.
Some states lack specific laws and adequate solar installation and support services, which reduces the feasibility of investing in a solar home. The Solar Energy Industries Association (SEIA) has highlighted some of the top solar markets that project homeowners to have increased property value by installing solar panel systems. These include:
- North Carolina
These states rank highest in their solar energy capacities and are bound to offer higher market prices for solar homes.
Local Cost of Electricity
Utilizing solar energy at your home reduces the dependence on local utility service providers to provide electricity. However, solar power is most resourceful in regions with high electricity rates since installing solar panels will result in significant savings. Unfortunately, states such as California, Texas, and New York have extravagant electricity rates. As a result, solar-powered homes in such areas will sell for a higher price than those in regions with lower electricity rates. This pricing disparity is because these residents stand to benefit more from reduced energy costs brought along by solar panels.
In addition, with a solar battery, homeowners can reserve extra energy generated by solar panels during the daytime. The stored solar energy can be utilized when electricity rates surge, affording homeowners notable cost savings.
General Conditions of the Solar Panel System
Solar panels deteriorate over time and become less efficient. Therefore, it is vital to consider the age and condition of the whole system. Typically, solar panels have a lifespan of 20-35 years, depending on their maintenance standards.
If a solar panel system is 20 years old or older, it will only serve the next homeowner for 10-15 years, thus lowering the potential property value. Recently installed solar panel systems guarantee potential buyers more years of service than relatively older systems. Furthermore, with inefficient solar panels, costs for repairs and upgrades may reduce the margin of projected savings on energy costs.
Before purchasing a solar-powered home, one must inquire about the solar panel system’s age and any due or completed upgrades. Homeowners should undertake all repairs and maintenance procedures to prolong their systems’ efficiency and achieve the best value while selling.
Ownership of the Solar Panels
As a homeowner, you can only include the installed solar panel system in your property sale if you’re the sole proprietor. This situation is the easiest and most profitable option for the seller. However, sometimes a home may use a leased solar panel system, thus requiring a different procedure for procurement. The other manner of acquisition results from the seller not being the system’s registered owner, thus forcing either a buyout or a lease transfer.
In a buyout, the seller pays the solar panel system’s legal owner to cover the remaining lease period. The longer the remaining period, the more the lump sum. Alternatively, you can transfer the system’s lease to the prospective buyer to complete the remaining lease contract period. The buyer must, however, satisfy the lease company’s requirements to finalize the sale. It’s worth noting that a lease transfer is more cost-effective since both parties are not subject to making extravagant payments while procuring a leased solar panel system.
Solar Panel Systems’ Contribution to Property Tax
Home improvements, such as installing solar panel systems, result in the appreciation of your property’s value, consequently contributing to higher property taxes. However, many states have passed laws to protect homeowners who invest in solar panels. As a result, you can claim tax relief for the additional property value while retaining the increased valuation.
In some states, you can get 100% relief from your property tax for installing solar power, while others offer discounts only for several years. It is, therefore, essential to consult your local state legislature for available incentives to achieve maximum property value.
Additional Returns on Solar Power Investment
Most quality solar panel systems usually generate more energy than homeowners require. You can take up net metering as an enterprise and sell the surplus energy to the local grid for annual remunerations or credits on utility bills. Net metering schemes are implemented differently from state to state.
Purchasing solar batteries reduces energy costs and compensates you when electricity rates spike. A solar energy battery ensures your home is powered during power outages, low sunlight, nighttime, and natural calamities when the power grid could be disrupted. In addition, homes off the grid can utilize solar batteries to avoid any affiliation with utility companies.
Benefits of Solar Panel Installation
The benefits of installing solar panels for homeowners are numerous, thus increasing the demand for solar homes. For one, solar panels are low maintenance and require little to no upkeep. They also significantly lower electricity bills by providing an alternative power source. Solar panels provide a clean, renewable energy source, thus reducing environmental pollution by lowering your carbon footprint.
Solar panels can increase the property value of your home, and incentives may be available for those who install them. For instance, installing solar panels could make you eligible for local and federal incentives. Search the Database of State Incentives for Renewables and Efficiency (DSIRE) to find information on state and local incentives designed to increase the use of renewable energy.
Finally, solar panels provide a reliable and consistent energy source, even during high energy demands, offering you more energy independence. Solar panels allow you to generate electricity and become less reliant on utility companies, which many people see as a major positive.
Contact the Professionals
At Friar's Heating and Air, we provide residents of San Diego, CA and surrounding areas with high-quality heating, cooling, and solar services. Our specialists offer first-rate solar installation and customer support for every client. We also provide EV charging station installation, indoor air quality solutions, and ductwork services. Our team of HVAC and electrical professionals is always on standby to provide you with the best solutions for your specific needs. Contact us today to learn more about our services!