Here’s How Much Solar Panels Can Increase Your Home Value
There are many reasons to install a solar panel array on your home. Along with the environmental benefits of making your energy consumption more sustainable, solar panels bring in excellent cost savings on electricity over the life of your system. But as part of these benefits, do solar panels actually increase home value in the state of Colorado?
At Elite Roofing & Solar, we’re eager to help homeowners maximize their energy savings by switching to solar power. The financial benefits of solar are difficult to understate, and those benefits include boosting your home value. Here’s how much of an increase you can expect from solar panels.
Do Solar Panels Increase Home Value in Colorado?
The short answer is yes, adding solar panels to your home will increase its value, especially here in Colorado where we receive plenty of sunlight. In fact, most areas nationwide see increases in home prices after solar panels are installed.
On average, we’ve found that most homeowners will see their home value increase by as much as 3–5% for a new solar array.
What Factors Impact the Added Value?
While 3–5% is not a huge range, there’s still clearly some wiggle room for greater added value. The difference between 3% and 5% in added value largely comes down to a couple of main factors.
The first is the typical electricity rates in your area. The more you typically pay for electricity, the more savings you’ll accumulate each month. Accordingly, homeowners will see this as a greater bonus, thus boosting your home value.
The same goes for the amount of sunlight your home is likely to receive. Homes with greater sun exposure can generate more energy, equating to greater savings over time. This added savings is then factored into the value of your home if you choose to sell.
Other factors include the condition of your solar system when you ultimately list your home and the overall market for solar panels.
Adding to Immediate Financial Benefits
If you’ve spent any time researching solar installation, you’re familiar by now with the many solar rebates and incentives available. However, when it comes to recouping your upfront investment, you’re likely also aware that this is a long-term benefit that must be built up from accumulated savings.
Increasing the value of your home, however, provides a more immediate financial benefit to solar panels. When paired with the significant rebates available for purchasing and installing solar panels, this helps to significantly reduce the effective cost to install solar panels and accelerate your savings.
A True Increase in Value
Of course, savvy homeowners and those in tune with their personal finance will immediately spot a potential issue: what about property taxes? After all, while solar panels will certainly increase your home value, typically an increase in value comes with an increase in taxes.
However, this is not the case when it comes to solar panels! The state of Colorado implemented a tax exemption specifically targeted at solar panels, and thanks to this exemption the increase in home value you gain from a new solar array is completely tax-free.
Unlock Your Solar Savings Today!
At Elite Roofing & Solar, we’ve helped many Colorado homeowners add value, energy savings, and greater sustainability to their homes through new solar installations. Elite stands out among roofing and solar companies as one of the few with an in-house solar installation team. Our solar experts will coordinate with our professional roofers to ensure your new solar array is expertly installed and will last as long as possible.
If you’re ready to maximize your energy savings with solar, book a consultation today!