Do solar panels increase home value in Texas? Yes! Solar panels save money, help the environment, and increase your home’s worth. This guide explains how. Learn valuable tips on maximizing the benefits of a quality solar system from a trusted Texas solar company like ESD Solar.
How Do Solar Panels Increase Home Value?
Solar panels are a great way to save money and help the environment. They lower your energy bills and reduce harmful carbon dioxide emissions. But did you know they can also make your home more valuable in the long run?
Studies from the National Renewable Energy Laboratory reveal that for every dollar you save on energy, your home’s value goes up by 20 cents. So, if your solar system saves you $700 annually, your home’s value could increase by a significant $14,000. Home appraisers and real estate agents have noticed this too. They’ve found that having solar panels not only boosts your home’s value now but also when you decide to sell it.
Buyers nowadays really care about energy efficiency. A 2021 report from Zillow, a housing trends expert, showed that 67% of buyers consider energy efficiency very important when choosing a home. The U.S. Department of Energy’s Lawrence Berkeley National Laboratory conducted a big study, stating that buyers are even willing to pay up to $15,000 extra for a home with solar power.
With the rising demand for energy-efficient homes, properties with solar panels are selling at higher prices. On average, a solar-powered home costs around 4.1% more, which is about $9,274. In certain places like New York, this difference is even bigger. Solar homes there cost an extra $23,989 compared to similar non-solar homes.
So, not only do solar panels save you money and protect the environment, but they also add significant value to your home. It’s a smart choice for any homeowner!
Factors That Impact the Value of Solar Homes
Adding a solar power system to your home doesn’t automatically raise its value. Many things influence your property’s worth, such as where you live, how much you pay for electricity, and the solar system you have. Let’s take a closer look at these factors.
Local Electricity Rates
Solar energy works best in places where electricity costs are high because it helps lower your monthly bills. According to the U.S. Energy Information Administration (EIA), the average monthly home utility bill was $117.46. If your electricity bill is lower, solar power might save you a little money. States like California, Connecticut, Texas, and New York have higher-than-average electricity rates, making solar power a smart choice in these areas.
States with a growing solar market encourage solar conversion through specific laws and incentives for homeowners. These states are perfect for solar-powered houses and have the highest potential for property value. SEIA, the Solar Energy Industries Association, has listed the states below as the 10 best solar markets.
- North Carolina
- New Jersey
The increased market value that comes with going solar may not be available to residents in states where the solar market is growing slowly or even non-existent.
Solar Panel Ownership
Choosing the right way to pay for your solar panels matters a lot, especially if you plan to sell your home later. To sell your house with solar panels, you must legally own the system. Ownership is essential to benefit from available perks. Homeowners can own solar panels by either purchasing them outright or borrowing money.
However, if you choose solar leases, the solar company stays as the owner of the system. To sell your house, you have to either pay off the lease or transfer it to the new owner. This might mean making a big payment based on how much time is left on the lease. Then, the new owner can start a lease with the solar company.
There’s a chance you can transfer your lease to a new owner so they can use the system for the remaining lease time. The new owner won’t have to pay anything upfront, but they need to pass a credit check and meet specific criteria. If you can’t find a buyer who fits the solar company’s lease requirements, transferring the lease might slow down your selling process.
Solar System Condition
When selling a house with solar panels, it’s important to consider their age. Newer solar systems are worth more than older ones because they have a longer lifespan of around 25 to 35 years. If your solar panels are 15 years old, they might only work well for another 10 to 20 years. So, if you’re planning to sell a house with solar panels older than 10 years, be aware of this.
To get the best value for your home, make sure to take good care of your solar panels. Regular maintenance is key. Also, higher-quality solar panels come with longer warranties compared to cheaper ones. These warranties cover various aspects: the manufacturer’s warranty deals with panel issues, while workmanship warranties handle installation errors. Having these warranties ensures that any necessary repairs or upgrades are covered, keeping your solar system running smoothly.
Before buying a house with solar panels, check all the related documents. This includes maintenance records, warranty details, and any other relevant paperwork. It should outline any replacements or upgrades made while the home was owned. If you plan to sell a solar-powered house, keeping it in excellent condition is vital to get the best deal.
What Is the Impact of Solar Panels on My Property Tax?
When you install solar panels, your home’s value increases, which might also mean higher property taxes. However, in 36 states, some laws can help you save on taxes. For instance, there’s a federal tax credit that gives you a 30% reduction on your installation costs. Plus, you can check for state and local incentives in a database called “State Incentives for Renewables and Efficiency.” Some cities and utilities might offer rebates too. So, even though your property tax might increase, these incentives can help you save money in the long run.
High-quality solar systems generate more electricity than you can use. Luckily, there’s a program called net metering that lets you sell your extra energy back to the grid. This program operates at the state or utility level. You can find these programs in your area by looking at the Database of State Incentives for Renewables and Efficiency (DSIRE). So, if you produce more solar power than you need, net metering helps you earn credits or payouts for the extra electricity you contribute to the grid.
If you can’t use net metering or prefer to save extra energy for yourself, consider installing a solar battery. This stored energy can come in handy during power outages, on cloudy days, or at night. Solar batteries are great if you want to live independently without relying on utility companies. They’re also useful if you choose to stay connected to the grid. So, having a solar battery gives you power when you need it, even if the sun isn’t shining.
Increase the Value of Your Texas Home with Solar Panels
Want to make your Texas home worth more? Consider installing solar panels in Arlington, Texas. This not only raises your home’s value but also cuts down on energy costs.
Research from the Lawrence Berkeley Laboratory of the U.S. Department of Energy shows buyers are willing to pay extra for homes with solar power systems. The study looked at sales data from almost 22,000 homes in eight states between 1999 and 2013, with nearly 4,000 having solar PV systems. Installing solar panels not only boosts your home’s value but also attracts buyers, making it a wise choice for homeowners in Arlington, Texas.
Homebuyers “consistently” pay an average of $4 per watt for solar power installed. Solar PV systems can add up to $24,000 in value to a home with a typical 6-kilowatt system.
The Bottom Line – Do Solar Panels Increase Home Value in Texas
Ready to enhance your home’s value and savings with solar panels? At ESD Solar, we specialize in top-notch solar systems tailored for Texas homes. Discover how solar can boost your property’s worth. Contact us now for a consultation and take the first step toward a greener future and increased home value!
Areas We Serve
- Solar Panels in Fort Worth
- Solar Panels in Houston
- Solar Panels in San Antonio
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- Solar Panels in Austin
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