Homeowners in New Jersey and beyond are installing solar systems on their property in order to power their homes with completely free and renewable energy from the sun. But you’ve probably wondered: will a solar system increase my property value or is it a deterrent for some buyers?
In this article, our team at Green House Solar will discuss installation costs, return on investment, and explore several caveats about home solar panels in Morris County.
Solar Panel Installation Costs
The upfront installation costs can sometimes make people wary of home solar panels, but with things like solar leases, solar loans, and the 30% Federal Solar Tax Credit, homeowners have more options than ever before to finance their solar system installation. In addition, the average warranty of a market-leading solar system is around 25 years. However, the lifespan of the panels is much longer than that, so if you’re planning on selling your home within that time frame, having solar panels will be very attractive to potential buyers.
Additionally, according to home buying and selling sites like Zillow, homes with solar panels sell for 4.1% more on average than homes without a solar system.
Return on Residential Solar Investment
One obvious benefit of solar panels is lower monthly energy bills, but did you know that energy that you save from having a home solar system translates to your home being valued at a higher price? The National Renewable Energy Laboratory conducted a study and found that for every dollar saved on energy via a home solar system, the value of the home increases by $20. That’s a huge return on investment of 20:1.
Residential Solar Caveats
If you lease your solar system and want to sell your home, the buyers will also need to agree to take over your existing solar lease. You can also transfer your solar lease to someone else, and many solar leasing companies can assist you in finding a buyer for your lease.
As mentioned above, the average warranty is 25 years, although the lifespan of the panels is much longer than that. In fact, with the lowest degradation of the highest rated SunPower panels, only 0.25% is lost per year, meaning that even after 25 years those panels will still be producing 92% of the power they were on day one.
If you’d like to know more about how solar systems can increase your property value, or if you have any other residential solar questions, please contact our team today or visit us at: https://greenhouse.solar/