Why do people remodel their homes? For some it’s to add more space or fix up a room that needs a makeover.
But many remodeling projects are inspired by the desire to increase the value of the property, so it will bring a higher price when it is sold. If that is your goal, don’t worry about building a new addition – just add residential solar panels.
According to a study by The Appraisal Journal, homes with solar panels are almost always sold for more than comparable homes still tied to the power company – the average premium within the magazine’s study area of six states was more than $14,000.
The reason solar homes command a better price is obvious – who wouldn’t want to pay a little more to move into a home without utility bills? It’s also the reason homes with solar panels tend to sell faster as well.
Recouping Solar Panel Project Costs
Installing a solar system is the most prominent type of remodeling project when the goal is improving a home’s energy efficiency. As with similar investments such as adding fiberglass attic installation, it’s likely that residential solar panels will recoup more than 100% of the cost, especially now with the rebates and incentives being offered.
Contrast this with projects that increase a home’s square footage – The Appraisal Journal reports that these efforts may only bring a 25% return on investment. But at least you have a place to put that pool table.
If the goal is to add value to your home – even if you don’t plan to sell for several years – residential solar panels are the way to go. And in the months or years before that “For Sale” sign goes up on the front lawn, you’ll enjoy the good feeling that comes from using clean energy that is good for the environment, and the extra money in your bank account that comes from not having to pay a steep (and getting steeper) power bill every month. Sounds like a win-win.