Increased Property Values, Faster Sales Rates

Solar Adds Higher Percentage of Resale Value Than Any Other Home Improvement.

Investment in Solar Panels recouped 87% at resale
Next two best investments:
- Deck Addition - 83.9%
- Vinyl Siding - 82.6%

[Source: Remodeling Magazine" Cost vs.Value Study"]

As energy rates rise:

Solar Thermal and Solar Electric Systems Appreciate in Value
All Other Home Improvements Depreciate

Homes with Solar PV Systems Sell for a Premium Over Homes with No Solar - (see Sidebar)

Lawrence Berkeley National Laboratory study conducted in California over an eight-and-a-half-year period ending in mid-2009, found:

strong evidence that California homes with PV systems have sold for a premium over comparable homes without PV systems.
the premium ranged from $3.90 to $6.40 per watt of capacity, but tended most often to be about $5.50 per watt.
this premium “corresponds to a home sales price premium of approximately $17,000 for a relatively new 3,100-watt PV system (the average size of PV systems in the study).”

[Source: "An Analysis of the Effects of Residential Photovoltaic Energy Systems on Home Sales Prices in California", Lawrence Berkeley National Laboratory, April, 2011]

Banks and Mortgage Companies Say Solar Increases Property Value

Home’s value increases $20,000 for every $1,000 reduction in annual operating costs from energy efficiency. Although this study is “old,” it is the still the standard for real estate appraisers and mortgage companies.

[Source: “Evidence of Rational Market Valuations for Home Energy Efficiency,” Appraisal Journal (Nevin, Rick et al.) Oct 1998]

Most Solar PV systems cost minimum $30,000 to $40,000 -

Property value increase - $15,000 to $20,000

Good Rule of Thumb:

On installation, a Solar Energy System raises home value by around 50% of initial installation cost.

Home Buyers Will Pay More for a Solar Equipped Home...

and They Sell Faster

Half of consumers surveyed said they would pay up to 10% more for a solar-equipped house, according to a 2006 Roper survey. [Source: “Here Comes the Sun,” Investor’s Business Daily, Aug. 18, 2006]

“Solar-powered homes are starting to outsell traditionally electrified new homes in several markets . . .” [Source: “Sun-powered homes defy a cool housing market,” Elizabeth Douglass, Los Angeles Times, Sept. 25, 2007]

“With energy costs remaining at near-record highs, homeowners are looking to energy-management systems and other sustainable design elements to help reduce the financial burden of high utility bills, according to a survey of architects by the American Institute of Architects. . .” AIA Chief Economist Kermit Baker said, “There is strong demand for green-home design features and products like solar panels, geothermal heating and cooling, and water-reclamation systems." [Source: “Real Estate News and Notes,” Palm Beach Daily News, Dec. 12, 2008]