Does solar increase home value?
In recent years, a number of studies have examined how installing a solar energy affects home values. The resounding conclusion is that solar adds value to real estate, helps homes sell faster, and this trend will continue to increase.
According to recent real estate studies:
- Values of homes with solar increase between 2% and 13%, with the national average being 4%.
- Home value increases often amount to $15,000 or more.
- Homes sell twice as quickly with a solar system.
View sources and studies on solar’s impact on real estate value.
Solar Value Myths and One Important Exception
As with any technology in early stages of adoption, conflicting theories exist about how solar affects home value. That said, many of the conflicting theories are based on myths, outdated information and inaccurate assumptions.
- Solar is ugly.
- Solar brings down home values of surrounding homes.
- Solar requires a lot of maintenance.
A few considerations:
- SunSource offers a transferable warranty, which provides continuous value to both the home seller and the new buyer. This is not true of all systems, so if buying a home with solar, be sure to find out what kind of warranty the system has.
- Most homeowner insurances do not charge extra for solar in itself, but should the home be evaluated for replacement value, it could result in a replacement value increase, which could affect premiums.
When solar does NOT increase home value.
- Leased systems do not add value to homes. Under a lease, the system is not owned by the homeowner, and is therefore adds no value. Specific terms of the lease must be examined, and the buyer would need to decide whether to continue the lease or have the system removed. However, leased solar systems are becoming much less common.
Solar, home value, and HOAs.
Home Owners Associations (HOAs) are not always solar friendly. In fact, strict HOAs often prohibit homeowners from installing solar, or require the panels only be on the backs of homes. While their intentions are good, attempting to protect the aesthetics and home values in the neighborhood, they are often misguided, based on the aesthetics of older, unattractively installed systems.
On the other hand, some HOAs have wholeheartedly embraced solar, banning together to create group buys in order to secure group purchasing power, while simultaneously ensuring quality of installations by vetting the installers.