Solar panel installation can save energy bills, benefit the environment, and raise a home’s value. Properties with solar energy systems sold for an average of 4.1% more during the previous year than comparable homes without solar power. That amounts to an extra $9,274 for the median-priced property.
By market, the sale premium varies widely. For instance, homes with solar energy systems sold in Riverside, California, for 2.7% more than comparable homes without solar power — a premium of $9,926 for the median-priced home in the metro. Solar-powered homes cost twice as much in the greater New York City metro area as they do in Riverside. In three other coastal metro areas—Los Angeles, San Francisco, and Orlando, Fla. — homes with solar electricity can fetch a premium of about 4%. At 5.4%, that is an additional $23,989 in value for the typical home in New York.
Because solar energy systems can result in significant future cost savings, homes with them often sell for more money than those without installed solar panels. These potential savings are justifiable upfront costs for homeowners aware of their high energy usage.
More than 80% of home buyers say energy-efficient features are essential. It is also possible that homes with solar energy systems are more likely to have other features that are difficult to measure but valuable, like heated floors, which could contribute to the premium associated with solar power. Personal preferences play a role, too.