If you are on the verge of making a decision to go solar, the chances are there is a one big question in your mind (among many others): “Does solar increase home value?” Given the current global economic uncertainty and increasing electricity bills, that is a very valid question. Your home is your biggest asset and maintaining it properly is important to help hold or improve its market value.
Long story short, installing a residential solar energy system could be the best way to increase your property’s value. That is one of the many advantages of switching to solar energy.
While you can significantly reduce or completely eliminate your electricity bills, you can also protect our planet and your loved ones.
Multiple studies have shown that homes with solar panel systems are valued and sold at higher prices compared to regular homes in their area. It is worth noting that the numbers vary in different countries and regions.
Without further ado, let’s dive into them.
How much does solar energy increase home value in the US?
According to The US Office of Energy Efficiency and Renewable Energy, using a solar energy system will increase your home’s value, and buyers across the country are willing to pay a premium of approximately $15,000 for a home with an average-sized solar array.
Another research showed an average increase in resale value being $5,911 for each 1 kilowatt (kW) of solar installed.
Did you know that in a state like California, a small 3.1 kW system can add an average of $18,324 to the value of a medium-sized home, and installing 5kW of solar panels adds an average of $29,555 to the retail value of a medium-sized home?
On average, solar panels raise a home’s value by 4.1% across the US, according to a new Zillow analysis of homes across the country. For the median-valued home that translates to an additional $9,274.
But what do homebuyers say about that?
The same study suggests that more than 80% of homebuyers say energy-efficient features of the property are important to them.
Do solar panels increase the value of homes in the UK and Australia?
As for the UK, solar panel specialists EffectiveHome found that the sale prices of properties that have gone solar across the UK have increased by 14% on average.
The houses in London see the biggest increase, with the value jumping by £90,000, followed by Bristol (£45,142), Edinburgh (£40,095) and Leicester (£31,577). The value is created in the ability to save on energy bills – particularly as these have increased by 37% on average during lockdown – as well as the ability to sell back to the grid.
From another perspective, the same research suggests that by going solar, homeowners are expected to save £27,500 on electricity bills over a 30 year period.
An Origin survey of 1,005 Australians in 2018 found 77% of people thought homes with solar were more valuable, with 57% of homeowners saying they would pay up to $10,000 more for a home equipped with solar, and 60% would pay at least that much more for a home with both solar and a battery wall.
Moreover, data from the real estate industry in Australia suggests that buyers have a strong preference for homes with solar panels, with South Australians showing a particularly high interest.
What about Europe?
Bank of America data shows that energy bills are increasing in Europe, with homes set to pay on average 54% more than they did two years ago.
So, it will not come as a surprise that 2022 has been the best year in solar history for the EU by 41.4 GW – 47% higher than the previous year which was 28.1 GW.
In aaddition to the increased property value, one of the main drivers of switching to solar energy has been the energy crisis in the EU.
“The numbers are clear. Solar is offering a lifeline amid energy and climate crises. No other energy source is growing as quickly or reliably as solar.”
Walburga Hemetsberger, CEO of SolarPower Europe
Given the situation in Europe, the rise of solar energy will continue not only for economic reasons but also due to the REPowerEU plan
The plan’s goal is to boost the use of renewable energy sources to 45% of the EU’s total energy supply by 2030, reducing and eventually eliminating the dependence on imported fossil fuels while also contributing to the protection of the planet.
Is it cost-effective to install solar panels on homes in general?
Nowadays more and more people are turning towards renewable sources of energy, especially solar energy. Not only it is a clean source of energy, but it is also quite affordable. Going solar will ultimately save you money and pay back its costs in the long run.
A high number of studies have already confirmed that solar rooftop solutions can add a significant amount to your home’s value. As we mentioned before, the added value depends on the region. While using a solar roof can increase your home’s value by 4.1% in the UK, that number is around 3.5% in the US.
If you are looking for something to give you an edge on the property market, to increase the value of your own property, or you are simply hoping to save on your electricity bills, a solar roof is “the” investment.
Roofit.Solar is an award winning integrated solar roof solution offering full packages of solar systems, including solar batteries, solar inverters, and other necessary devices.
Our solar roofs combine the traditional Nordic metal roof design with solar technology. If you are looking for design as well as technology and need some guidance along the way, we are here to help you.
Feel free to contact us anytime to get a fully customized premium solar roof that will not only help you save on electricity bills but increase the value of your home!