More than 4 million homes are sold across the U.S. every year. Whether you’re thinking about selling soon or just want to make smart investments in your home for the future, there are things you can do today to boost your home’s value when you’re ready to put it on the market. As a bonus, those upgrades can also make life better for you and your family in the present.
One of those smart investments is solar panels.
Going solar offers a lot of obvious perks. You’ll save money each month on your energy bills, reduce your carbon footprint, and enjoy more energy independence. But do solar panels raise the value of your home? And can they help your house stand out from the pack and sell faster when it comes time to move?
How Solar Panels Affect Home Value
Going solar isn’t a small decision. The average cost of a solar panel system runs around $20,754 before incentives. That’s a big investment. Of course, you’ll start earning your money back right away in the form of lower energy bills each month. It takes roughly 10 years for the average solar panel system to pay itself off, but not every homeowner stays put for that long.
Will you get your investment back when you sell? In other words, does solar power increase home value?
The research on solar panels and home value is encouraging. According to Zillow, homes with solar energy systems sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274.
And Zillow isn’t the only source backing up this sentiment. A landmark study from Lawrence Berkeley National Laboratory analyzed nearly 22,000 home sales across eight states and found that buyers consistently paid a premium of around $4 per watt of solar installed, which works out to roughly $15,000 for an average-sized system.
The premium can vary quite a bit depending on where you live. In New York City, for example, solar homes commanded a sales price boost of 5.4%, adding nearly $24,000 in value to the typical home. Markets in California and other high-electricity-cost states tend to see some of the strongest returns.
The solar panel impact on home value is real and can make the investment worth it for homeowners, even if they aren’t living in their forever home.
Do Solar Panels Help Homes Sell Faster?
When it’s time to move, the last thing you want is for your home to languish on the market. A slow-selling home can cost you in a variety of ways. Every extra month your home is on the market means another mortgage payment, more maintenance costs, and more stress. A faster sale puts money back in your pocket and lets you move on to your next chapter sooner.
Fortunately, your solar panels can help you in this arena as well. Research from Rocket Homes found that home listings with solar power spend 13.3% less time on the market and are 24.7% more likely to sell over asking price. That’s a significant advantage, especially if you’re selling in a buyer’s market.
So, why do homes with solar sell faster? Buyers are paying attention to energy costs more than ever. Rocket Homes also found that 66.5% of homeowners without solar say they’re interested in getting it in the future. When a home already has a solar system, it takes one big item off a buyer’s to-do list. This kind of built-in value will make your home more desirable and may get you to “Sold!” more quickly.
Are Solar Panels Worth It for Home Value?
When you add up all the benefits of solar, the case is pretty compelling. The solar panel impact on home value isn’t just something you benefit from when you sell. Your solar system starts working for you from day one.
From the moment your system is up and running, you’re saving money on energy. Homeowners with solar pay a median of $70 per month on electricity, compared to $130 per month for those without it. That’s a savings of $60 a month, or $720 a year, that stays in your pocket.
The financial benefits go beyond your monthly bill. A higher home value doesn’t just help you at the closing table. It can also work in your favor if you ever decide to refinance your mortgage. More equity in your homes means you can borrow more.
And when you decide to sell? Your home is likely to sell faster and go for over asking. That makes solar panels a home improvement that pays you back in multiple ways.
Making the Most of Solar for Your Home’s Value
So, do solar panels increase home value? The data says yes. However, if you really want to maximize what solar does for your home, consider taking it one step further with a solar battery and a whole-home energy management system.
A battery storage system means your home keeps running even when the grid goes down. For today’s savvy buyers, that kind of energy resilience is a serious selling point. Add in smart energy management that optimizes when you use power and when you sell it back to the grid, and you’ve built a home that’s as energy efficient as possible. Whole home energy management systems can also intelligently manage electric vehicle charging alongside solar and battery storage. That could make your house even more attractive to buyers with EVs.
FranklinWH’s whole-home energy management system integrates solar, battery storage, the grid, and even EVs into one seamless, intelligent ecosystem. It helps homeowners like you save more every month while also building a home that stands out in any market.
Ready to see what the FranklinWH System can do for your home and its overall value? Request a consultation today.