Do solar panels increase home value in Florida? Well, you’ll be pleased to know that solar panels can enhance the overall value of your property.
Is Solar Worth It in Florida?
Absolutely! While the initial expense of installing solar panels can be high for most homeowners, transitioning to solar energy is still a wise and worthwhile choice.
Florida is known as the Sunshine State because it enjoys plenty of sunshine throughout the year. It’s situated in the southeastern part of the United States and gets more hours of sunlight in the winter compared to states in the northeast.
On average, an area in Florida receives about 4.25 peak sunhours, which is a measure of how intense and how long the sunlight shines. More peak sunhours mean that a solar panel system can produce more electricity.
Florida’s climate plays a big role in making solar energy a viable option. The state experiences long, hot, and humid summers, along with mild winters, resulting in many sunny days. This is great news for Florida homeowners because they can use solar panels to turn sunlight into energy, which helps reduce their utility bills.
Cost of Solar Panels on a Florida Home
Installing solar panels can boost the value of your Florida home, but it’s important to consider the installation expenses.
The installation price typically falls between $11,000 and $15,000. Your specific cost depends on factors like the panel size, type, and equipment you choose. Plus, you might be eligible for federal credits and local incentives that can lower your overall expenses.
How Do Solar Panels Add Value to Your Home?
You may be wondering how adding solar panels to your Florida home can increase its value.
Installing solar panels is a home improvement with several benefits:
Solar PV systems cut down your electricity costs by supplying some of your home’s energy needs. In Florida, the net-metering program allows you to sell extra energy back to the grid, earning credits to offset your power consumption. Solar panels typically last about 25 years, so you’ll enjoy long-term savings.
Reduced Carbon Footprint
Using solar energy reduces your carbon footprint because it’s clean and environmentally friendly. You can also decrease your reliance on the grid by sending surplus power back into it.
Increased Property Value
Homes equipped with solar energy systems tend to sell for higher prices compared to those without. Potential buyers are attracted to these homes because they recognize the long-term cost savings they can enjoy. So, adding solar panels can enhance the overall value of your property.
How Much Do Solar Panels Add to Appraisal?
Installing solar panels can significantly reduce energy costs and carbon emissions for homeowners. These long-term savings also translate into added value for your house. According to the Appraisal Journal, for every $1 you save on your annual energy bills through solar panels, your home’s value increases by $20. So, if your solar system saves you $400 per year, your home’s value increases by $8,000.
On average, potential buyers are willing to pay $9,274 more, which is about 4.1% higher than the prices of comparable homes, for houses equipped with solar panels. The largest solar home study conducted by the U.S. Department of Energy revealed that buyers are even willing to pay up to $15,000 more for homes powered by solar energy.
Here is a comparison between homes with and those without solar energy systems.
Median Home Value: $556,582
Potential Value Increase with Solar Panels: Up to $15,000
Median Home Listing Price: $420,000
Value Increase per $1 Reduction in Annual Utility Bills: $20
Potential Value Increase with Annual Savings of $200: $40,000 or more
Average Home Sold Price: $369,000
Solar Systems Increase Value by 4.1% compared to the national average
Median Home Price: $320,000
Value Increase per Watt from Solar Panels: $3.78
Potential Value Increase with a 5-kW System: $18,900
Average Home Price: $300,000
Appraised Value with a 5-kW Solar Panel System: $318,900
Factors That Influence the Value of Solar Panels for Your Home
Additional variables, like the local housing market, the condition of solar systems, and your home’s location, can impact its overall value. Let’s dive deeper into these factors:
Check Current Electricity Rates in Your Area
Solar-powered homes can be a smart choice for saving money on energy bills and reducing consumption, especially in areas where utility costs are high. According to the U.S. Energy Information Administration (EIA), the average monthly utility bill in Florida is $128.16. Some states have even higher averages, making solar systems more attractive.
In places like Orlando, where electricity costs are higher, energy-efficient homes, including solar-powered ones, hold more value for both buyers and sellers.
Local Solar Market
Many states offer tax incentives for homeowners switching to solar power. These incentives make solar transitions more affordable and help boost solar potential. Homes with solar systems in these solar-friendly states tend to have higher market value compared to those in less solar-friendly areas.
Owned vs. Leased Solar Systems
When selling a home with a solar system, homeowners need to ensure they can legally transfer the system to the new owner. Solar companies often offer two payment options:
Full Payment: This option requires the original homeowner to make a significant upfront investment to purchase the system. However, it’s easy to include the system’s cost in the home sale.
Solar Lease: With this option, the solar company retains ownership of the system. Transferring a leased system typically involves a buyout, where the owner pays the remaining balance to end the lease. The new homeowner can then start a new solar lease, potentially leading to a significant payment, depending on the lease’s duration.
Solar System Condition
The condition of your solar system is crucial for adding value to your home. Well-maintained, up-to-date systems are attractive to buyers, while poorly maintained or outdated systems can deter them. To sell a house with solar panels, ensure they are in top condition through regular maintenance.
Consider System Age
The age of your home also plays a role in resale value. Solar systems can last between 25 and 40 years if well-maintained. However, if your system is 10 years or older, it might be over halfway through its lifespan. Solar systems older than 10 or 15 years may not be seen as a selling point for potential buyers.
Increase the Value of Your Florida Home With ESD Solar
Solar panels can significantly boost the value of your Florida home, especially when partnering with a trusted solar installation company like ESD Solar. If you’re a homeowner, reach out to us to discover how you can make the most out of your solar panels while staying within your budget.
We’ll handle the entire system installation for you and provide valuable suggestions to enhance your home’s value. This way, you can make the most of your investment. Don’t hesitate – get in touch with one of our Florida representatives today to kickstart the process.
Areas We Serve
- Solar Panels in Tampa
- Solar Panels in St. Petersburg
- Solar Panels in Cape Coral
- Solar Panels in Port St. Lucie
- Solar Panels in Lakeland
- Solar Panels in Orlando
- Solar Panels in Clearwater
- Solar Panels in Gainesville