How Solar Panels Can Increase the Equity of Your Home
We have now entered the year 2020 and solar panels are still a growing trend. Homeowners are now able to get financial help from federal entities to help to pay for solar panel arrays. The arrays are not only going to create energy savings, but with the right circumstances will be a monetary investment.
Solar panels increase the value of a home
Just like adding carpet to some rooms, or installing a pool in the backyard, installing solar panels is a great way to invest in a home. A homeowner or developer who is adding solar panels to their home can expect to get a 4.1 percent increase in the value of the home. We are not talking about saving money on electricity, but pure investment data, just from the installation of a solar array. For the average home, this would mean over $9000 dollars extra added to the price of the home, just from the new solar panels.
Where the home is located will also determine the extra value provided
Different states have different laws on the books concerning solar installations. New Jersey seems to like being at the top of the heap for rewarding those who provide solar premiums. They come in at 9.9 percent for solar premiums. This translates into an added value of $32,281 for an average home. Other states such as South Carolina, New York, or Washington are going to hover around the four percent mark on solar premiums. The lowest is South Carolina with 3.5 percent, which translates into an added value of $5,866 for a median-valued home.
A smart solar installation depends on the installation
Just like cars, solar panels are created with differing levels of quality. Buying them from known providers or from experienced installers is a smart idea. Remembering this is going to affect the extra value provided by solar panels. Encapsulated solar cells will last a long time thanks to the layer of plastic or other material to protect them from the elements. Rather than just having one layer of plastic over the individual cells, look to buy solar panels that have glass covering them as well. The solar panels will not only look good but last longer, creating more value.
Getting a power purchase agreement for the home
There is more than one way to make extra money with a residential solar array. In states with high electricity prices this is an alternative to just outright buying solar panels. The solar panels are installed on the house but remain owned by the installers. The installers then charge the homeowner a monthly fee. This is called a power purchase agreement, which is usually written with the term PPA. Other parameters will come to bear in a PPA, such as state laws, but the overarching detail is the price per kilowatt hour. If it is high then using a PPA will make sense. For those who want to use this method to make money on their solar array, they need to do it soon, because the price of solar equipment is falling.
Solar panels increase the ease of selling a home
A home with a solar panel array will be sold around twenty percent faster than a home without one. The reason for this is that the buyer of the used house knows that they will have a future benefit from the installation of the solar panels. This may seem obvious, but the actual amount of savings is substantial. Even if the owner never sells his or her house, the ratio of dollars spent to dollars earned is significant. For every dollar spent on the solar array, the homeowner will likely add at least a twenty dollar increase to the home’s market value. This is hard to accomplish, even in the stock market! Not only this, billionaires like Bill Gates are recommending people to install solar panels on their homes. The investment and the “coolness” factor make solar panels a truly smart choice for today’s homeowner.