Installing Solar Panels Can Increase Your Home’s Value
How much do solar panels increase home value? Whether you’re looking to sell your home now, in the near future, or even farther down the road, it’s always a good idea to look for ways to improve your home’s value. For most homeowners, this will involve completing renovations, installing new appliances, or making other upgrades. But how much do solar panels increase the value of a home?
At Elite Roofing & Solar, we’re always looking for ways to help homeowners understand the value of solar—and to ensure they’re getting as much from their solar array as possible. In addition to the savings on energy bills and the energy efficiency benefits, adding solar panels can increase your home’s list price as well. Let’s take a look at how much you could expect installing solar panels to increase the value of your home.
How Much Do Solar Panels Increase Home Value?
Most estimates suggest that installing a new solar array will increase the value of a home by around 3–5%. This data largely comes from Zillow, who maintains a considerable amount of data on housing prices.
In terms of the actual dollar value that solar panels add, the answer varies. For example, on a $500,000 home—a rough average for house prices—adding 3% more value with solar panels could increase the list price by around $15,000. Homeowners with more expensive homes, on the other hand, could expect a larger increase in value.
True Added Value Without Tax Increases
Of course, when evaluating the value of something like your home, it’s important to factor property taxes into the equation. After all, a significant increase in your home’s value will typically carry an increase in property taxes as well.
This is not the case with solar for homeowners in Colorado, however! While there is no state-specific solar rebate in Colorado, there are various tax incentives available for solar installation. This includes a property tax exemption for solar—meaning that when you increase your home’s value with new solar panels, your property taxes will not be raised.
Spend Less, Add More Value
Another important factor in evaluating how solar panels can increase home value is to factor in the various rebates that will apply when purchasing and installing new solar panels. The federal rebate for solar panels is a major incentive that homeowners everywhere should be looking to take advantage of.
We’ve written fairly extensively on the financial incentives for solar, but the bottom line is that these great incentives add up to a lot. Between the Colorado property tax exemption, the sales tax exemption, and the federal rebate, which provides up to 30% of the cost to purchase and install photovoltaic arrays, solar panels become a much more efficient way to add value to your home.
Energy Savings for Now, Value for Later
Of course, increasing your home’s value is not the biggest financial benefit to adding a solar array to your home. As homeowners interested in solar undoubtedly know, the annual savings on energy costs make a huge difference, as solar panels can work continuously to save you money on your utility bills year over year.
When paired with the added home value, however, this means homeowners will be able to reap financial benefits both now and in the future, depending on when you sell your home.
Elite Roofing & Solar Is Here to Help You Go Solar!
If you’re aiming to make 2024 the year you go solar, Elite Roofing & Solar in Denver can help! Our team of experts in both roofing and solar will be able to maximize the value of your solar array. We do this by fully inspecting and preparing your roof, installing your solar array, and protecting the roof underneath it with our Roof Shield warranty. Not only are you adding value to your home, but you’re ensuring that value is well protected well into the future!