It’s estimated that 4% of households in the U.S. use solar energy. However, that number is expected to triple by 2030. There are a variety of benefits for a solar-powered home, including monthly savings and green energy that is reliable. But did you know that adding solar can increase your property value?
Cost of Solar
Before we get to that, let’s break down the cost of solar. The cost of solar installation has gone down 70% over the past decade. Depending on the installation and product, most solar energy systems are between $10,000 to $20,000. But there are options out there that help lower that amount like our DIY solar kits!
Return on Investment
The initial cost of solar installation might turn some homeowners away, but what can they expect for their investment?
The Investment Tax Credit (ITC) currently offers a 26% tax credit which helps offset some of the initial costs of installation. While the percentage was set to decrease this year, the ITC was extended through 2022 to stay at 26%! As for energy savings, homes with solar energy usually pay 10% to 40% less in utility bills.
Depending on the size of the system, the average time to recoup is between 15-25 years. For homeowners that choose to install their own solar with a DIY kit, their ROI can be expected about 5 years after installation since they don’t have to pay installation fees!
Property Value for Resale
In 2019, Zillow conducted a study to determine where solar increased resale value the most. The states where solar increases a house value the most are:
- New Jersey – 9.9%
- Pennsylvania – 4.9%
- Louisiana – 4.9%
- North Carolina – 4.8%
- Washington – 4.1%
- Florida – 4%
- Hawaii – 4%
- Maryland – 3.8%
- New York – 3.6%
- South Carolina – 3.5%
Large cities fluctuate the state solar premiums, like New York City was 5.4% and Los Angeles was 3.6%. On average, 1 kilowatt of solar panels increases resale value from $4,020 to $5,911 depending on the state or location. A home that uses a 3 kilowatt system would increase anywhere from $12,060 to $17,733!
Why Go Solar?
Converting to solar energy for your house offers almost immediate benefits besides helping the environment! As soon as you install solar panels, your energy costs start to decrease. If you install before 2022 ends, you’ll get a 26% tax credit that helps shorten your return on investment timeline. Also, if you ever need to sell your home, having solar can increase your property value!