We are asked, often, if solar increases (upon resale) the value of a home. The short answer is yes: There are myriad studies that quantify the increase in a home's value (presuming, of course, the solar system is owned versus leased; if leased, it could devalue the home). However, we posit that you should not assume solar will increase your home's value ... there are too many unknown unknowns, including market conditions when you sell and, most important, the value the buyer will place on solar.
Fortunately, there's an effective, easy to use, free tool that calculates the increase in a home's value with solar. Developed by Energy Sense Finance (and funded, in part, by the U.S. Department of Energy's SunShot Initiative), PV Value walks you through a series of questions to quantify the value of your existing solar system. Take a peek and let us know if you have any questions.
In addition, Energy Sense recently released the U.S. Solar Market Value Report. The intent was to help homeowners and other real estate professionals make an informed decision regarding how to value and whether to maintain (or remove) an existing solar system.
The report reveals that the mean value for an existing solar system in 2016 was $3.93/watt in California. (Interestingly, new solar systems, net of the 30% federal tax credit, cost ~$2.50 per watt.) The inflated value of a new versus old system amplifies the value of solar ... the future utility savings, even when discounted, significantly exceed the cost of a new system.
The report also addresses new versus older systems, and found that older solar systems do, in fact, retain their value. Specifically, a 12-year old solar system was found to retain 50 percent of the value of new systems installed in 2016. This means that, not only do homeowners with solar have the opportunity to save on monthly energy bills, they also have equity in the system itself, which retains significant value over time.
Again, take a few minutes, poke around, and feel free to contact us if you have questions. For home buyers, home sellers and real estate professionals, at a minimum this tool can help value existing solar systems and thereby determine whether it makes sense to install a new system.
