Most people are well aware of the benefits of solar power - it provides clean, sustainable energy, it can give you more control over your utility bills, and it can save you money on electricity, and in some cases, even make you money. But adding a solar power installation to your home can have an unexpected benefit - it can also increase the value of your home.
Several studies have been done over the last decade that conclude that installing a solar power system on a home increases its value. This increase is often by a considerable margin over comparable homes without a solar power system.
A study by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (LBNL) found that homes in California with solar power systems sold for a premium over comparable homes without solar. According to the study, homes that sold from 2000 to 2009 increased in value by an average of $5.50 per watt of solar capacity. This study also concluded that the value added by the installation of the solar power system exceeded the costs of installing it, making it a wise investment into the home.
Another study, conducted in 2011 by the National Bureau of Economic Research (NBER), looked into the effects of installing solar energy systems on homes in the San Diego and Sacramento areas. The research found that a residential solar power system added three to four percent to the home’s value. This amounted to an increased value of over $22,000 for homeowners in the area at that time. Like the LBNL study, the NBER study also also concluded that the cost of installing a solar power system was less than the appreciation in the home’s price.
A later study conducted by LBNL and Sandia National Laboratories further confirmed these results. The study, released in 2015, looked at 22,000 home sales in eight states spanning from 1999 to 2013. The study showed that home buyers are consistently willing to pay premiums for homes with solar power across various states, housing markets, and solar markets. According to the research, home prices increased by around $4 per installed watt of solar power, or a premium of approximately $15,000 for a 3.6-kilowatt solar system.
According to these studies, installing solar on your home will increase its value and is financially beneficial. Star Solar Specialists will work with you to secure state and local tax incentives, ensuring that you get the largest possible return on your investment in a solar power system for your home. We also offer financing, which allows you to replace your electricity bill with one low monthly payment that will not increase, unlike constantly rising utility costs. Contact Star Solar Specialists today to get an estimate for a solar power installation on your home.
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