How a Solar Home System Can Increase Your Home’s Value
Solar home systems are designed to power a house, providing an energy source that is free from pollution and unstable fuel prices. They also can help reduce reliance on the national grid, particularly in remote and rural areas.
Homeowners can install a solar system for their home by either paying cash or using a loan. This allows them to qualify for the 30% residential solar energy tax credit.
A home solar system provides a significant financial benefit for homeowners. The system saves on electricity costs and, if installed properly, reduces utility bill charges. Homeowners also can lower their energy bills further by using a solar system to electrify appliances like heating & cooling, lighting and cooking. Plus, studies show that solar home systems increase resale value.
Depending on where you live, you could qualify for a federal investment tax credit that can offset the cost of solar. In addition, many states and local governments offer incentives like rebates or net metering to help make going solar more affordable.
Although initial upfront costs can be high for some homeowners, the long-term energy savings and boost to resale value may be enough to offset the investment. Additionally, there are leasing options available that can mitigate the up-front costs for those interested in a shorter payback period.
While a grid-tied solar system can significantly lower a home’s dependence on utility power, homeowners that want to achieve true energy independence can use IQ batteries for solar storage. This will allow them to continue to power essential appliances during short and extended grid outages caused by weather, climate, wildfires, line maintenance and more. Combined with energy efficiency, solar and IQ battery solutions can reduce the need for grid power altogether.
With a residential solar system, you’ll generate your own electricity and save on your monthly energy bill. Your specific savings will depend on several factors, including:
Purchase options: Buying your solar system outright (with no loan) will save you the most money. It also grants you system ownership, qualifying you for incentives. Other purchase options include a power purchasing agreement or a lease, which will result in lower monthly payments but will not grant you system ownership and can disqualify you from some incentives.
System size: Purchasing a larger system will allow you to capture more sunlight and reduce your costs per watt. Choosing a smaller system will increase your payback period but may not provide as many financial benefits. Location: The amount of daily sunshine in your area will significantly impact your production and cost savings.
Energy efficiency: Invest in an energy efficient home with air sealing and SOLAR HOME SYSTEM insulation to further cut your electricity consumption. These investments can also qualify for NYSERDA incentives.
Solar incentives: The federal investment tax credit is currently the best solar incentive available. It credits 30% of your upfront solar costs to apply against your tax liability. Your state and local utility companies may offer additional rebates, incentives, or policies for your system. Check out DSIRE, the Database of State Incentives for Renewables & Efficiency, to see what options are available in your area.
Increased Resale Value
Like adding a new kitchen, a bathroom, or hardwood floors, installing solar panels and getting the most out of your investment will increase your home’s value at the time of sale. A study by Zillow found that homes with rooftop solar energy systems had an average boost of 4.1% in value over comparable properties without.
Other studies, such as one by the Lawrence Berkeley National Laboratory, find that for every dollar of energy savings provided by your rooftop solar system, your property value will increase by $20. That means that for a quality system, you could see a boost in your home’s resale value of $24,000 or more.
The resale value increase you receive will depend on the lithium solar batteries wholesale quality of your solar system, as well as how much your energy is producing and any utility company incentives available to you (Check out DSIRE). It’s also a good idea to keep records from your installer about your solar installation, warranty information, and power bills showing both before-and-after proof of your energy savings. This way, when it’s time to sell your home, you can share these records with prospective buyers.
However, it’s important to note that the resale value you receive from your solar system depends on whether it is owned or leased. Leasing a solar panel system makes it more difficult to sell your home, as the new homeowner would be required to take over the remaining contract with the solar company. This can be a costly and lengthy process that many home shoppers would prefer to avoid.
In comparison to other large home improvements such as a new roof or a pool, a solar power system is relatively easy to maintain. Solar panel maintenance typically consists of a regular cleaning and annual inspection.
Rain usually keeps panels clean, but if they aren’t cleaned in a timely manner, dust or debris can build up and decrease their performance. In arid climates, it’s recommended that homeowners wipe down panels at least twice a year to prevent dirt accumulation.
Most solar systems have indicator lights that alert homeowners of any problems, but a professional technician should be hired to inspect the panels on a regular basis. This can help prevent any potential damage to the equipment from occurring, and it will allow for any repairs to be made as needed.
A solar service package can also include critter guards to protect the solar array from pests. Squirrels, birds and other animals are drawn to the safe haven that solar panels provide, and they can cause damage to the components of the solar power system.
If you’re interested in purchasing a solar power system, contact the team at Affordable Solar today. We can walk you through our various financing options, including PPAs and leases, or help you determine if a personal loan is the best option for your specific needs.