A recent survey conducted by Pew Research Center found that 8% of homeowners in the United States use solar panels to generate some or all of their home’s electricity. Solar panels are made of a photovoltaic (PV) material, such as silicon, that converts sunlight into electricity. As sunlight strikes the PV material from which they are made, the solar panels will generate electricity. After being converted to alternating current (AC), the electricity can then be used to power the respective home.
Before installing solar panels, however, many homeowners wonder whether they will increase their home’s selling value. Solar panels require a monetary investment. You’ll have to spend money on the solar panels themselves, as well as other related equipment, to install them. So, will solar panels increase your home’s selling value?
Yes, Solar Panels May Increase Your Home’s Selling Value
Countless factors affect the selling value of homes, but research shows that buyers are often willing to pay more for homes equipped with solar panels. A study cited by the U.S. Department of Energy (DOE) found that a standard-size solar panel installation increases the resale value of homes by an average of $15,000.
The DOE also states that homes with solar panels typically sell faster than those without. When you get ready to sell your home, you may be able to sell it more quickly if it features solar panels. Rather than sitting on the open market for multiple months, you may find a buyer in just weeks.
Why Buyers Are Willing to Pay More for Homes With Solar Panels
Buyers are often willing to pay more for homes with solar panels because of the cost-savings benefits they offer in utilities. With solar panels, buyers won’t have to rely exclusively on local utility-provided electricity. Rather, they can generate some or all of their electricity via the solar panels.
Another reason buyers may pay more for homes with solar panels is because they are environmentally friendly. Unlike coil-burning power plants, solar panels don’t produce any environmentally harmful gases. They offer a clean, renewable source of energy that’s good for the environment.
Solar panels are also low maintenance. Aside from cleaning them on occasion, buyers won’t have to do any other work to maintain them. The same can’t be said for other home renovations. Pools, for instance, require a substantial amount of work to maintain. Therefore, installing a pool may not increase your home’s selling value. A pool may have the opposite effect by lowering your home’s selling value.