Everyone wants to increase their home's value. Maybe you've considered a remodel or a fresh coat of paint. But have you considered whether or not solar panels can help?
Perhaps you're planning to sell your house in a few years. Or maybe you plan to enjoy your current home for as long as possible, but want to be prepared when the right time to sell comes. Either way, it's always a good idea to find ways to boost the value. Experts agree that selling a house is one of the best ways to make a profit - and you can maximize those profits with the right upgrades.
Do solar panels increase home value? If so, by how much? Let's take a look at whether or not solar panels should be a part of your home value growth strategy.
The Value of Solar Panels
When you make upgrades to your home, you're making an up-front investment, in the hopes that it will later pay for itself. The value of solar panels lies in the fact that they will always pay for themselves in enough time (as long as your roof gets enough sun).
Solar panels result in energy savings that are easy to tally up every month. Within a set period of time, the cost of installation will be covered by these savings. And even after that cost is covered, the savings continue.
Depending on where your home is located, there might also be state as well as federal tax breaks for solar panel installation. Of course, if you're selling your home soon, the cost of adding solar panels might seem like it's not worth it. But buyers are often enticed by the savings, too.
Do Solar Panels Increase Home Value?
The short answer is yes. Many buyers will pay more for a home that has solar panels because they know they can count on regular future energy savings. For them, the initial investment of paying more for the home will pay for itself in their energy bills over the months.
However, there's one caveat. You have to actually own the system of solar panels that you installed for it to have appeal in the eyes of buyers. If you got the system through a solar lease or purchase power agreement, it might not add value.
In a solar lease agreement, the solar company pays to have the panels installed on your roof, and you pay a fee each month to use the solar power. Purchase power agreements are similar. In both cases, you don't own the solar panels - you're effectively renting them.
When you sell a home with this kind of solar panel setup, the monthly fees get passed on to the buyers. Many buyers won't want to pay for the use of solar panels that they didn't even choose. And although companies often advertise these agreements as ways to save money, they often don't have the same savings that solar panels you own outright can.
Solar Panel Pros and Cons
Increasing your home's value is one benefit of solar panels - but it's not the only one. Here are some of the top ways solar panels can help your home, and a few drawbacks you should keep in mind too.
One of the best things about using solar panels to increase your home's value is that they don't have to be large to get results. For many buyers, the fact that solar panels are there at all is reason enough to pay more. Even if the installation is small, your home will still see a significant value increase.
Of course, the panels can also benefit you long before you sell your home. As soon as the installation costs are covered, the monthly savings on your energy bills kick in. And you also get to rest easy knowing that you're doing your part to help the environment.
Solar panels are very easy to maintain once they're installed. There aren't any moving parts, so they won't break down. A little bit of maintenance is all you need to keep them in top working order. Even for the laziest of homeowners, solar panels are easy to keep up.
Are there any drawbacks to installing solar panels?
As long as you own them outright, the negatives are few and far between. However, one thing to consider if you're planning to sell a home with solar panels is the area in which you live.
Virtually no buyer will see solar panels as a negative. However, buyers in liberal, environmentally-conscious areas tend to value solar panels more than those in conservative areas. If you live in a place where environmentalism isn't a top concern, solar panels may not increase the value of your home as much as you'd like.
The age of your solar panels can also affect the value. The value of a solar panel installation tends to depreciate at a faster rate than its efficiency. Even if your system is still working well, it won't hold as much value after a number of years.
That said, an old system that's still efficient will still result in energy savings. If you highlight this aspect to potential buyers, you can help them see the value even in a system that's ten years old or more.
How to Get Solar Panels Installed
When you're ready to get solar panels installed, you'll want to contact a reliable local company to do the work. Solar panels aren't something you can install yourself. To find the right company, look for reviews and testimonials from former customers who can speak to the quality of work.
Ready to Try Solar Power?
Do solar panels increase home value? Yes - and they do so much more. If you're thinking of selling your home soon, the installation will pay for itself at the time of sale. And if you're not yet ready to sell, it will pay for itself when you see your energy bills decrease month by month. Either way, it's a win-win for you and the buyer.
If you're looking for solar panels in the greater Kansas City area, don't hesitate - contact us to learn about financing options.
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