A home’s features can increase its market value. Property owners often invest in pools or lavish landscaping to make the property more valuable. However, these features come with hidden maintenance and upkeep costs that subtract from the potential return of the owner’s investment.
Solar panels are different. If you’ve asked yourself, “Do solar panels increase home value?” The short answer is a definite yes.
They’re easy to install and maintain, not to mention they can reduce electricity bills. All these and more make solar panels one of the best upgrades a homeowner could make.
If you’re still not convinced, this article will walk you through how much value solar panel home installations can give and why.
How Much More Can Solar Panels Sell a House?
After learning that solar panels increase home value, the next question is, how much does it increase property value? It depends.
According to Zillow, homes with solar panels installed can increase their value by 4.1% or an average of $9,200 (almost PHP507,000).
The value also depends on the location of the property itself. Experts found California homes to sell by 2.7% more, but New York homes reached 5.4%, equivalent to almost $24,000 (over PHP1.3 million). Ultimately, it will also depend on a property’s real estate value in a specific location.
Another factor is the size of the solar panel installation itself. An older study estimated that each 1 kilowatt (kW) size increase in the solar panel equates to roughly USD$5,911 (around PHP360,000).
These numbers are rough estimates and are expected to change often, depending on economic conditions. With the solar market forecasted to grow, the value of solar-powered properties could increase.
6 Ways a Solar Panel Installation Boosts Home Value
It’s clear now that solar panels can increase a home’s value by a significant amount, and they can do this in various ways. Below are different benefits solar panels have that increase a home’s worth.
1. It lowers the electric bill
The weather, electrical appliances, and living habits can increase your electricity bill. Solar panels provide an alternate energy source for homes that can increase monthly savings on electricity.
To illustrate the point, take this example. The average Philippine household spends PHP8.24 per kWh and consumes an average of 897 kWh, amounting to around PHP7,400 monthly.
Suppose the household operates their electricity for an average of 12 hours a day across an entire week. Using SolarNRG’s Solar Panel Cost Calculator—which considers the cost of installation and return on investment in the given timeframe—a recommended system size of 2.54 kilowatts peak (kWp) solar panel helps save almost PHP220,000 monthly.
With rising electric bills, homes reliant on renewable electricity can be more valuable.
2. It reduces maintenance cost
Maintenance is an essential factor when buying a home. Contrary to what many believe, solar panels aren’t expensive to maintain. They’re designed to withstand and remain effective under different weather conditions for years. Despite this, it doesn’t mean they won’t degrade over time, especially with daily use.
Regular solar panel maintenance isn’t very hard. Cleaning this device is like cleaning dirt and dust off a window; an annual inspection will suffice to keep the system in good shape. The lower the maintenance needed can make the property even more attractive.
3. It provides a reliable source of energy
A common occurrence for Philippine households is a loss of electricity, mainly during the typhoon season, which can last for hours or even days. One of the advantages of using solar energy is that it protects you better against blackouts. Solar batteries store energy reserves, which you can rely on during harsh weather.
Solar panels provide property-owners with additional reliability that makes them much more valuable. Since a typical solar panel has a lifespan of 25 to 30 years, it’s a worthwhile investment for years to come.
4. It benefits rural and remote properties
Property owners in rural or remote locations can experience most of the benefits of solar power. It provides them with a reliable energy source during typhoon season and reduces how much they need to spend on electricity.
Work-from-home setups have allowed more people to relocate away from congested cities, making solar-powered remote or rural homes more valuable and sustainable living options for remote workers.
5. It meets the increasing demand for an eco-friendly lifestyle
According to Zillow’s Consumer Housing Trends Report, around 67% of buyers say that an energy-efficient home is very important. It explains why now is a good time to invest in renewable energy.
Solar panels reduce greenhouse gases emission with each kilowatt-hour produced. It also lessens the dependence on non-renewable fossil fuels, making it better for the planet and more valuable to the environmentally conscious.
6. It takes advantage of the growing solar power market
The demand for sustainable lifestyles is one of the many drivers of the ever-increasing solar power market in the country and the world. Investments in renewable energy reportedly generate an average of 6.6% to 10.1% return on investment.
The solar energy market in the Philippines is forecasted to record a compound annual growth rate (CAGR) of 15% between 2022 and 2027. There are already entire solar-powered villages launched in the country.
It’s clear then that solar power is a growing business in the Philippines. Hence, it would make good financial sense to invest in it early to reap the rewards in the coming years.
More Reasons to Go Solar
The next time someone asks, “Does solar power increase property value?” You can reply with a confident yes. A solar-powered home has increased value since it lessens costs for electricity and maintenance while providing a reliable energy source. Additionally, a growing market for sustainable living could propel the value of solar-powered homes even further.
Before enjoying the benefits of a solar-powered home, it’s crucial to ensure that the property is prepared for it. You can use SolarNRG’s Solar Panel Cost Calculator to help you calculate the recommended solar panel size.
Going solar doesn’t have to be complicated. Contact SolarNRG for easy solar solutions for industrial, commercial, and residential properties.