Do Solar Panels Increase The Value of Your Home?
As homeowners, the potential for home improvement projects is boundless. Ranging from new light fixtures to restoring the shine to wood flooring – it is important that your home feels like home to you.
In recent years, many eco-conscious homeowners have increasingly been installing solar panels on the rooftops of their homes. Aside from doing their parts to combat climate change, many also cite how doing so will increase the value of their homes. Let us dive into how solar panel installations value-add to your homes.
1. Increased investment value due to increased demand for green living
According to a 2017 Housing Trends Report by Zillow Group, 2,965 household decision-makers and home buyers in the United States were surveyed on their most desirable home features. Almost 50% of those asked listed energy efficiency as a desired home characteristic.
The same can be said for our sunny island – in 2017, the National Environmental Agency (NEA) published a Household Energy Consumption Study, having surveyed 550 households. 4 in 5 households considered energy efficiency a priority when purchasing appliances such as air conditioners.
Demand for green living is clearly on the rise. Sustainable home features such as solar panels have become increasingly important to prospective homebuyers. There is an additional premium which homes with solar panels tend to demand as compared to similar homes without said features. This has become a selling point for such houses – more and more homebuyers are willing to pay for the premium as solar panel installations are viewed as an upgrade.
2. Increased consumption value in the form of future energy savings
Solar panel installations also provide true value to prospective homebuyers in the form of future energy savings. Having the means to produce your own electricity translates to savings on electricity bills, and this gives you more control over your monthly expenses.
With such prospective cost savings through the installation of solar panels, these homes would certainly be viewed favourably when they are offered for sale. Additionally, with the price of electricity is expected to rise in the future, the advantages of having a home solar energy system becomes even more evident.
3. Contributory value of solar panels to energy efficiency
The growing demand for green living has also spurred growth in the market for energy-efficient appliances. Eco-conscious homeowners have a much wider selection of products to choose from as they decide to live more sustainable lives and reduce their overall carbon footprint. Owning a home which comes equipped with rooftop solar panels can enhance the benefits of other low-carbon products.
For example, if a homeowner fits their home with energy-efficient LED lights, the lower energy consumption to power these over standard incandescent bulbs will help to fully maximise energy savings and cost savings potential.
As for reducing one's carbon footprint, going solar and tapping into energy efficient solutions will make an impact, no matter how you look at it. If your home rooftop solar PV system has a capacity of 5 Megawatt-Peak (MWp), you're helping to avoid the emission of 4.7 tons of carbon dioxide, something which you cannot claim if your home is fully powered by the main power grid, which relies on fossil fuels. Just by having those panels on your roof, you've helped to offset the same amount of carbon dioxide one vehicle emits in a year. That is definitely food for thought.
While there other factors which can affect the value of your home, the science of solar energy proves that solar panels definitely fall under the "Benefit" column. You're saving on electricity bills and you're helping to reduce your carbon footprint. And when you decide to sell your home, these potential savings and 'built-in' sustainability will be handed over to the new owner. We're confident that your realtor can make a stronger case than we have here.