Does Solar Increase Home Value In PA?
How Much Does Installing Solar Panels Really Increase Your PA Home Value?
In recent years it has become clear that installed solar panel systems do indeed increase the value of a home. The question is how much does solar increase home value? According to a recent study conducted by Zillow, PA homes increase in value by an average of 4.9% with solar! The percentage of increase in home value thanks to solar installations does vary from state to state.
According to a great Zillow research recap article published by CNBC, there are 10 states where solar panels notably increase the value of your home. In their assessment, Zillow ranked Pennsylvania second on the list of top 10 states where solar increases home value. New Jersey was ranked first on the list and South Carolina was ranked tenth and last.
So, the answer is a resounding YES! Solar absolutely adds notable value to your home and Pennsylvanians choosing to go solar have a great opportunity to increase the resale value of their homes more than almost any other state in the country!
How Did Zillow Determine That Solar Panels Increase Home Values?
Zillow conducted a very thorough study to determine the validity behind the claim that solar panels do increase the resale value of homes. They looked at comparable homes that were sold with and without solar panels to determine the increase in value solar installations provide. They looked at home sales that fell into this category over the course of an entire year which allowed them to come up with some reliable results. To read their study criteria you can click and see that here.
Basically, their study found that homes with solar panel installations sold for higher values than comparable homes sold in the same market without solar installations. State to state the amount of home value increase from solar panels varied (we’ll get into the factors affecting how much solar panels increase home value later on) but consistently they did find that solar panel installations are adding real, measurable value to homes across the country.
Does Leasing Or Buying Solar Panels For Home Increase The Value More?
Leasing solar panels is actually a very common thing within the solar industry. There is a big difference for homeowners and the way solar panels affect the value of their homes based on whether they lease or buy. It’s important for you to know that leasing solar panels does not improve the value of your home the way buying solar panels does.
Leasing solar panels does not increase home value for a number of reasons.
The first is that if you are leasing solar panels for your home and you sell your home the new buyer will need to enter into and continue paying that lease. Typically that is a detractor from the appeal of purchasing a home, not a selling point.
The second prominent reason leasing solar panels doesn’t increase the value of your home is that the new buyer is not subject to the credits or tax benefits that the original homeowner was.
Why Does Solar Increase Home Value In Pennsylvania?
Energy independence is becoming increasingly popular in America and around the world. Homeowners and business owners alike are realizing the value and advantages of solar energy. You can either greatly reduce or eliminate your monthly electricity bills with the right solar panel system. With energy prices on the rise and no way to predict how they will fluctuate having a reliable energy source, namely the sun, is a big value add to any home or business.
Imagine comparing two homes you are interested in buying. Let’s pretend that the square footage of the homes, the property they come with, and the location are too similar to be huge factors in your decision. Now you find out that one of the homes is completely independent of the local utility company because it has a solar installation that adequately provides the power the home needs throughout the year. It’s pretty easy to see that this would be a big factor in your decision to buy or pass. Solar panels offer security in uncertain times and a financial advantage that increases the value of most homes.
What Factors Effect How Much Solar Panels Increase The Value Of Your PA Home?
Pennsylvania’s solar market is quite strong and growing stronger. Ranking 2nd in the country for states whose home’s increase in value with the installation of solar panels, there are a number of positive factors that are contributing to how much solar panels increase the value of your home. Here are just a few factors worth mentioning.
- Location of your home
- How the surfaces of your roof are positioned in relation to the path of the sun
- The energy production of the solar panels
- How expensive electricity is in your area
- Renewable energy-conscious population
- Solar renewable energy credit market
- PA state solar incentives
- How old the solar system is at the time of sale
Why Are People Buying Homes With Solar?
More than 80% of home buyers say energy-efficient features are important, according to the Zillow Group Consumer Housing Trends Report. It’s exciting to live in a time when people all around the world are beginning to care more about taking care of the earth. A large part of that global shift is tapping into renewable energy sources including solar power. That is why homes with solar installations are selling for more money. People are literally recognizing that they no longer have to be slaves to the utility companies, they can take clean power production into their own hands with solar.
As home selling points go, solar panels are still not top on the list, but they are becoming more popular each year. Thanks to the research and reporting from Zillow, we now know for certain that they are a positive factor when people are faced with comparable homes one with solar and one without.
So, to wrap up the entire conversation, does solar increase home value in Pennsylvania? Yes! How much more will your home sell for in PA with solar panels on it? Your PA home will most likely sell for between 4% and 5% more than it would without solar panels installed.
Solar panel technology continues to improve and people are paying more for homes with solar panels and other renewable energy sources/features. The question is are you ready to go solar? Contact us today if you want to ask one of our solar professionals questions or check out our solar panel cost calculator to figure out what a solar system could cost for you.