How Solar Affects Your Home Value

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Solar Power & Home Value

If you do some research about your home's value and solar power you will get a lot of conflicting information. Some websites will say that solar power will lower your home's value and make it harder to sell. They are incorrect!

Solar Installations increase your home's value substantially. Research from the US Department of Energy and Berkley completed in 2015 show that "... home buyers consistently have been willing to pay more for homes with host-owned solar PV energy systems - averaging about $4 per watt of PV installed...". To explain the economics another way that means that if you pay less than $4 per installed watt you've instantly increased your home value by more than the cost of your PV installation. 

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Homes with solar sell for an sell for an average of 4.1% more than homes without solar. In Florida the average home with solar sells for 4.6% more. 80% of homebuyers reported that energy efficiency is important for their buying decision. Homes with solar are likely to sell more quickly.

Zillow, 2019 Report

What about Property Taxes?

Many people think that if your value increases and it sells for more that they will be responsible for higher property tax. The answer is no. Florida has exempted Solar PV installations from property tax assessment. This is one of the incentives created by the Florida Legislature to increase solar adoption rates.

Return on Your Solar Investment

Not everyone is going to stay in their home for the rest of their lives.  So it is a valid concern to think about when deciding if you should put in a solar PV system. However, data shows that a solar PV system will increase your home value substantially even if you move before you've paid off your installation costs.

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Selling Your Home After You Install Solar

When you sell your home you have to consider if you still owe money on your solar system or if you have completed paying for it.

If you own your system outright then you just sell it with your home. If you still owe money on the system you'll need to pay the loan from the equity made during the sale. If you have a PACE loan, the loan follows the house so the homebuyer will accept the liability of the loan and will have ownership of the solar array.

Solar PV Systems increase your home value by more than the cost of the system. Having a solar power system increases the rate at which your home is sold and the selling price. You don't have to worry if you don't plan to stay in your home long term because you can include paying off any loan balances in your closing procedures.

It's a great time to go solar!

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