Higher Home Value
Much like when you renovate your kitchen, a solar power system is considered an improvement to your home. As a result, solar energy can increase your home’s value and make it more attractive should you decide to sell it in the future. In fact, installing a solar system can actually increase the value of your home more than the cost of the system itself, particularly where state and federal incentives are available. This is because electricity bills factor into the affordability of a house and a buyer can afford to pay more for a home that has lower utility bills. A 1999 study partially funded by the U.S. Department of Housing and Urban Development
found that home values increase by $20 for every $1 reduction in annual electricity bills. This means, the annual savings of $1,680 mentioned above would result in a home that is worth $33,600 more!
As if these reasons weren’t enough, research by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy
has shown that a home with solar panels installed can sell twice as fast as a home without solar panels installed. As a wise consumer you’re probably curious about what these improvements could do to your property taxes. Fortunately, most states offer property tax incentives that exclude the added value from the solar system in the property tax calculation.