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8 Things You Should Know Before Buying a House With Solar Panels. Zillow solar homes

8 Things You Should Know Before Buying a House With Solar Panels. Zillow solar homes

    Does solar increase home value? The updated data

    Despite a flourishing market, selling solar isn’t always easy. Prospective solar customers have concerns about everything from ROI and how to finance their system, to how it will affect the aesthetics of their house. And they’ll likely want to know what having a PV system will do to the value of their home — now and in the future if they want to sell.

    The more specific you and your sales team can be about the benefits of installing solar, the better. And research continues to produce compelling data about how solar can increase the value of a home. This information can go a long way towards helping a prospect feel confident about making the leap.

    In this blog, we’ll look at some facts about how solar affects home value — and the studies behind them — that will help you close those tough clients.

    Their house will sell for more

    Lawrence Berkeley National Laboratory (LBNL) conducted a report that definitively showed that homes with solar sold for more than houses without it. The 2015 study, Selling Into the Sun: Price Premium Analysis of a Multi-state Dataset Of Solar Homes. analyzed 22,000 home sales in 8 states, 4,000 of which included PV systems, from 2002 to 2013.

    The study found that each watt of solar added an average of 4 to the home’s value in California and an average of 3 per watt elsewhere. This amounted to an average increase to the home’s selling price of 20,000 in California (4 x 5,000W for the average system size) and 15,000 outside California (3 x 5,000W).

    While that study is extensive in both timeframe and number of properties, it’s also seven years old. To say the housing market has changed since then would be an understatement, and savvy customers are going to want more recent data.

    A Zillow study from 2019 shows that even with all the ups and downs of the housing market, buyers will still pay a premium for houses with solar. Controlling for factors like size, location, number of bedrooms and bathrooms, and age, homes with solar sold for an average of 4.1% more than those without.

    For the rest of this blog, we’ll use data from both studies.

    Learn more about the types of solar buyers you’re likely to encounter by checking out our research on the 5 Types of Solar Buyers .

    Their house will sell faster

    A 2006 study by the National Renewable Energy Laboratory (NREL) looking at specific properties in California dubbed by their developer as “high-performance” homes — homes that are both energy efficient and generate electricity — found that houses with PV systems sold 20% faster (and for 17% more) across several subdivisions built by different California builders.

    This study of several hundred home sales also revealed that if a solar system was already installed and factored into the price, buyers were more likely to choose that house over others without solar. Some other interesting findings include: the aesthetics of a PV system were not identified as an obstacle to purchasing and the resale value was not damaged by the presence of a solar system.

    But, again, this data is more than 15 years old, and only looks at a couple hundred data points. What do more recent numbers say?

    Well, there’s been surprisingly little research on this topic over the past 15 years, but what is out there supports the idea that solar does, in general, help a house sell quicker.

    Interestingly, further Zillow research shows that while houses with solar do sell for a premium, they tend to sell marginally slower (about 2 days on average) than those without panels.

    That’s not the entire story, though. As energy rates increase, and home buyers become more attuned to environmental issues, solar panels — and other “green” features like programmable thermostats and car charging stations — can increase the demand for a home.

    “There is increased demand for green living. than 80% of buyers now say energy-efficient features are important in selecting their home,” Sarah Mikhitarian, a Zillow senior economist, explained to CNBC. “We are increasingly finding that these attributes are important to prospective homebuyers. This is part of the reason that there is a premium associated with it. The other piece is that there is true value provided by solar panels — namely, future energy savings.”

    They’ll likely recoup the cost of the system when they sell

    The 4.1% selling price premium the 2019 Zillow study found equals about 9,300 for a “median-valued” home in the US. (Maths review: Think of “median” like the median of the highway — half of homes are valued higher, half lower.) The average cost of a PV system is 2.77 per watt. according to EnergySage data from January 2022. This means a 6-kW system would cost about 16,600, before any incentives, and about 12,300 after the federal solar tax credit discount.

    Even given that these and the incentives offered vary wildly, a nice shorthand is that a homeowner will likely recoup most of the cost of their solar installation when they sell their home. And again, that’s before factoring in any of the savings they’ll see on their energy bill.

    Educating your customers on the basics is a great way to close deals. Download our Solar Sales Follow-up Kit and let it answer the questions for you.

    Other considerations

    There are many factors that could influence how much (and whether) a PV system adds value to a home. Here are a few other considerations to make your customers aware of when considering the increased home value solar may provide.

    Regional markets and electricity costs? They matter

    One factor to keep in mind is that the largest increases to the value of a property may tend to come in regions with high electricity rates and strong solar incentive programs. High energy costs can make a home with a PV system more sellable. according to a 2015 New York Times article. For instance, Long Island’s high energy rates have been a boon for the solar market there; the area is home to about 40% of all solar systems in New York. Gerard O’Connor, a local appraiser, stated that buyers are “certainly willing to pay more” for a home where high electricity increase the savings from PV systems.

    The 2019 Zillow study shows that regional markets are still a critical factor today. For example, the premium in New Jersey is almost 10%, and big metro areas, such as San Francisco (4.4%), often check in above the national average.

    Higher energy costs can also mean higher value for homes with solar during the appraisal process. When appraisers consider the role of a PV system in the calculation of a home’s value, electricity produced by the system can be considered income, whether due to savings or utility production credits, as noted in appraisal guidelines for green and high-performance properties from the Appraisal Foundation (see p. 36-38).

    Ensuring PV is factored into home value

    Lenders, real estate agents, and appraisers should account for the value added by a solar system — and some may not know to do this (so your customer should point it out). The Federal Housing Authority (FHA) and Fannie Mae both have guidelines for valuing the system during appraisal. Sandia National Laboratories has a free tool designed to help real estate appraisers and others calculate the value of a new or existing PV system.

    Most data focuses on owned PV systems

    Much of the research to date, including the LBNL and Zillow studies discussed here, FOCUS on homes where the PV system is owned by the homeowners — not third-party owned systems financed with PPAs and leases. Also, leased systems or ones paid through a PPA will not be included in an FHA or Fannie Mae appraisal.

    Beyond the need for more data on how third-party-owned PV systems affect home resale value, these types of systems present their own unique complexities in the home sale, such as the need to transfer a PPA or lease to the buyer.

    System size and age

    PV system size can also affect a home’s resale value. While the Zillow study doesn’t break down its data by system size, other research by Berkeley Labs has shown that each additional watt of solar capacity can add 4 to a home’s value.

    Another influencing factor might be the age of the system when the home is sold. The LBNL study notes that the depreciation of aging solar systems may decrease the value added to the home during appraisal. However, as the study authors note, it’s unclear exactly how system age impacts the numbers because there has been little research about it given the immaturity of the American solar market.

    Going solar is a significant decision for any homeowner. It requires careful consideration about the pros and cons, and a good amount of trust in the contractor they work with.

    So build that trust! Be prepared to provide research-backed information about the benefits of solar, including the value it can add to their home in addition to the instant utility bill savings. This will help you build trust with prospects, and keep customers — past and present — happy that they chose to work with you.

    resources

    Looking for more ways to help educate potential customers?

    The Solar Sales Follow-up Kit explains all the basics, from how panels work to the solar incentives homeowners can take advantage of, in a handy, easy-to-read format that’s perfect to give to curious customers.

    FAQs

    Does a solar system increase the value of a home?

    Multiple studies indicate that a solar system can increase the value of your home. Research by Berkeley Labs has shown that each additional watt of solar capacity can add 4 to a home’s value .

    Does a solar system make it easier to sell a home?

    There is not clear evidence either way on this question. While research by Zillow shows that more than 80% of buyers say energy-efficient features are important in selecting their home, it also found that homes with solar panels sold very marginally slower (2 days on average) than houses without solar panels.

    Does the increase in home value vary by region?

    Yes. The national average, according to Zillow, is about a 4% increase in home value. But this varies widely depending on your state, energy rates, and other factors.

    Are there other solar benefits to consider?

    Yes! All this is independent of the energy bill savings, and cost certainty, that solar delivers to most customers.

    Going solar can lower your home’s carbon emissions and save you money on utility bills, but there are some things you’ll want to know before buying a home with solar panels.

    By Rachel Brougham | Updated Apr 27, 2022 5:24 PM

    We may earn revenue from the products available on this page and participate in affiliate programs.

    In 2021, solar energy accounted for 46 percent of all new electricity-generating capacity added in the United States. Additionally, residential solar installations set an annual record of 30 percent year-over-year growth, according to the recently released Solar Market Insight Report for 2021. Currently, solar power accounts for just 3.9 percent of total U.S. electricity generation, but that number is rapidly growing.

    So is buying a home with solar panels the right move for you? Well, that depends on some key factors.

    How much sun will your roof get?

    You’ll need plenty of sunlight for solar panel success. Check for trees both on your property and in neighbors’ yards. Have the trees grown and begun to cast too much shade since the solar panels were installed? If that’s the case, some tree trimming or transplanting (and neighborly negotiation) might be necessary.

    While solar panels work best on south-facing roofs, both east- and west-facing roofs can also gather plenty of energy if they get enough sunlight throughout the day.

    What about resale value?

    Solar panels are viewed similarly to upgraded kitchens or remodeled bathrooms—they increase a home’s value. In fact, homes with solar panels sell for 1.4 percent more than similar homes without them, according to Zillow.

    The photovoltaic value (PV) calculates energy production value for a solar panel system and is compliant with Uniform Standards of Professional Appraisal Practice. The PV value is a tool that both home sellers and home buyers can use to get the most accurate estimate of a home’s solar energy production.

    Will you lease or own the solar panels?

    If you’re considering buying a house with solar panels, you’ll want to ask if they are leased or owned. Owning the solar panels on your house is the best financial decision, according to Consumer Reports, since solar panel lessees save less than those who purchase them outright.

    You might save some money up front with a lease, but you may lose that advantage when buying a home with existing leased panels. When leasing solar panels, homeowners can lose control of just how many panels are placed on their roof and where, since the leasing company will be focused on maximizing its own bottom line.

    Furthermore, a lease term for solar panels is generally 20 years. That means if you’re buying a home that has years left on the solar lease, you, as the home buyer, become the lessee.

    How much maintenance are you in for?

    The good thing about solar panels is that they basically do their thing with little effort on your part. With that said, you’ll want to make sure to take care of your investment. With proper solar panel care, they can last you up to 30 years!

    You’ll primarily need to clean the panels to keep them maintained. That means removing dirt and debris a couple times per year (think spring and fall) and after any storms that might leave them covered in debris. Cleaning will ensure the panels get enough sunlight to work properly.

    You may also want to hire a professional annually for an inspection to make sure the panels are functioning as they should.

    Can you still get a mortgage for a house with solar panels?

    Buying a house with solar panels can affect the way you get a mortgage. In particular, matters like owning or leasing the panels and how the panels were financed might affect your mortgage.

    If the seller of your soon-to-be home outright owns the solar panels, that’s ideal; the panels will likely only affect the home’s price. If you buy a home with leased solar panels, though, you’ll want to discuss any lease terms and monthly fees associated with the system.

    What’s the difference between solar loans and financing?

    If the seller of the home owns the solar panels and is still making payments through a loan or through financing, you’ll want to know the details as the buyer.

    If the panels were financed through a solar loan, the loan will remain the seller’s responsibility, even if the property is sold. That means the buyer is off the hook for making payments on that loan.

    However, if the solar panels were purchased through Property Assessed Clean Energy (PACE) financing, the financing remains attached to the property, since payments are made via property taxes. Those payments would thus be transferred to the home buyer.

    What if the roof needs to be replaced?

    Roofs with solar panels should be in good shape, but there may come a time when the roof needs replacing.

    If a roof with solar panels needs to be replaced, both the panels and the mounting hardware must be uninstalled and reinstalled. This work is often done by the solar panel installer, but sometimes the roofing company can take care of it. The re-installation can cost anywhere from 1,500 to 6,000, on top of the roofing costs.

    Will you really save money with solar panels?

    If you own your new home’s solar panels outright, then yes, you will save money on energy costs. How much you save will depend on the amount of solar power you generate, local utility rates, and how much energy the utility pays you for when you return it to the power grid. If your solar panels are leased, how much you save will be dependent on the lease terms.

    The National Utility Rate Database allows you to look up current electricity rates in areas around the country and can provide a rough idea of how much you could save on monthly utility bills when buying a house with solar panels.

    Do Homes With Solar Sell Faster? (What The Research Says)

    If you’re still considering whether or not to install solar panels, you may be wondering whether they’ll help you to sell your home faster if and when you decide to sell.

    While there is strong evidence that homes with solar sell for a premium, there isn’t much research on whether solar helps homes to sell faster. The little research that has been done focuses on California, the U.S. state that has led the solar revolution for more than 17 years.

    things, know, buying, house, solar, panels

    On average, houses with solar PV systems sell between 20% faster and twice as fast as houses without solar panels. Buyers see solar panels as a significant selling point and are more likely to snap up homes that have them more quickly than those that don’t. They will often pay more for solar, too.

    Having completed my first net-zero solar home renovation in 2021, I know how important it is for homeowners who invest in solar to know everything possible about its financial implications. The answer to this particular question isn’t written in stone, but I am convinced that properly installed, quality solar panels and systems do make homes sell faster.

    SunPower Research Shows Solar Systems Are a Bright Spot

    Research by the Silicon Valley-based SunPower company backs up my belief that homes with solar do sell faster.

    A Californian solar company that has operated in the U.S. since 1985, SunPower designs all-in-one residential solutions that incorporate high-efficiency solar panels.

    As long ago as 2008, they did a market research survey that showed new homes with SunPower solar electric power systems were selling more than twice as quickly as other new homes without solar.

    Titled New Homes With SunPower Solar Systems are Bright Spot in Market, it found that 92% of homeowners would recommend a solar home. It also found that new homes with solar installed were selling twice as fast as homes without solar.

    The company based its data on sales of homes in three regions. The figures show the average rate per month that solar homes were selling between 2006 and March 2008 versus the rate homes without solar were selling:

    • Sacramento region – 3.24 vs 1.9 homes per month
    • San Francisco Bay area – 3.24 vs 1.33 homes per month
    • Central Valley region – 4.72 vs 2.37 homes per month

    The survey report quoted a study by The Ryness Company, an award-winning Californian real estate specialist that helps builders and developers get optimum returns on development investment. They found that in 13 communities, new homes with SunPower solar systems were sold at an average rate of 3.46 per month versus comparable homes with solar that were selling at a rate of 1.71 per month.

    They also quoted a developer saying that families living in efficient solar communities were reducing utility costs by as much as 60%.

    Definitive NREL Research Identifies House Sales

    The U.S. Department of Energy Office of Energy Efficiency Renewable Energy’s National Renewable Energy Laboratory (NREL) continually does a lot of comprehensive solar energy research. This includes a big data project that aims to understand why some people go solar, and many more don’t.

    It is intended to provide installers with helpful insight. It is a valuable document that can help home sellers and those in the real estate industry identify why some buyers won’t be drawn to a home with solar. In other words, it can potentially help make homes with solar sell faster.

    But first, let’s look at the definitive, much-quoted research published by the NREL in 2006.

    Solar Homes Sell 20% Faster Than Equivalent Non-Solar Homes.

    NREL – U.S. National Renewable Energy Laboratory

    Presented as a technical report, A New Market Paradigm for Zero-Energy Homes: The Comparative San Diego Case Study, centered on a bold initiative by Shea Homes in San Diego, California, aimed to set a new industry standard for energy efficiency. Launched in 2001, it took the form of “the ultra-efficient, new Shea High-Performance Home.”

    The motivation behind the project was seated in an industry besieged by rising natural gas and unprecedented upheaval in the electric market. Homeowners in San Diego were paying ten times more for electricity and more than double for natural gas than they had done a year before.

    The innovative pilot study wasn’t an economic or engineering analysis but instead based on observation and qualitative interviews with homeowners who bought homes from the company. It focused on performance, added value, and relative costs and was described as a natural field experiment.

    The researchers also started from the premise that high-performance homes, while competitive on the market, were selling for 9.2% less than comparative homes.

    It’s a lengthy study that you are welcome to read. But what’s important here is the impact of solar on house sales.

    One of the issues the report tackled was a preconception that PV solar systems might negatively affect the resale value of homes. At the time, solar systems cost a lot more than they do now, and that was a very real concern.

    There was considerable resistance, and yet the homes they offered with solar PV and solar thermal systems sold 20% faster than those that didn’t incorporate solar.

    Researchers also found that the mean gain for homes was 6.4% more than for homes that didn’t have PV systems when it came to resale.

    How to Make Solar Homes Sell Faster

    What motivates people to buy solar PV panels for their homes? This was one of the questions behind the NREL three-year, big-data project funded by the U.S. Department of Energy’s SunShot Initiative.

    Researchers worked with several PV installers to get an idea of how they pitch and sell solar to potential customers. They identified seven common mistakes that installers make, some of which can impact the resale of solar homes.

    When it comes to resale, rather than solar installer salespeople, it’s the real estate agents who need to close potential customers and make sure that solar homes sell more quickly.

    Relevant findings include:

    • Not following up on leads quickly enough
    • Not addressing the buyer’s interest in solar and using this to make the sale
    • Giving up on leads because the agent thinks they’ve already lost the sale

    The fact is that a good real estate agent will make a solar home sell faster. I have no doubt about that.

    Conclusion

    While there’s not much evidence that proves homes with solar sell faster than those that don’t incorporate solar systems, the little research that has been done shows that they do.

    At the end of the day, if you’re going solar there are enormous benefits, and your house selling faster is probably one of the lesser ones. But rest assured, it will.

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    Do Solar Panels Increase Home Value? (2023 Guide)

    Learn how investing in solar panels can increase your home value and make your home more appealing to buyers.

    Tamara Jude is a writer specializing in solar energy and home improvement content. She has a background in journalism and an enthusiasm for research, with more than six years of experience producing and writing content. In her spare time, she enjoys traveling, attending concerts and playing video games.

    Angela Bunt is an accomplished editor with more than a decade of experience writing, producing and editing content. She has a breadth of knowledge spanning the home, travel, music and health industries, and she is a proud New Hampshire homeowner. In her spare time, Angela enjoys live music, watching the Real Housewives and hanging out with her dog, Jim.

    Installing a solar panel system has numerous benefits. It reduces your carbon footprint, lowers your monthly energy costs, and even increases your home value. We at the Guides Home Team have extensively researched the best solar panels and the solar industry at large. We used that knowledge to compile this guide answering key questions about how to boost your home value by going solar.

    • How Much Do Solar Panels Increase Home Value?
    • Factors That Influence the Added Value
    • Solar Property Tax Exemptions
    • How To Save
    • The Bottom Line

    Offers a range of financing options 24/7 customer service line Panel insurance protects against theft and damage

    Packages include 24/7 system monitoring 25-year warranty guarantees power production, product performance and workmanship Installation process is handled 100% in-house

    How Much Do Solar Panels Increase Home Value?

    Installing solar panels helps homeowners reduce their carbon footprint and energy costs. Those long-term savings translate into added value for your home. According to the Appraisal Journal, your home value increases 20 for every 1 reduction in your yearly energy bills. This means that if your solar system helps you save 400 in a year, your home value increases by 8,000. According to Zillow, this will result in a higher asking price when you sell your home. In the 2021 Zillow Group Consumer Housing Trends Report, 67% of potential home buyers ranked energy efficiency as a “very to extremely important” feature for a home. These buyers were willing to pay an average of 4.1% — or 9,274 — more for homes with solar panels than for comparable homes. Averages were higher in some markets, such as New York, where solar-powered homes sold for 5.4% more, adding an extra 23,989 to the sale price. In the largest solar home study to date, the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) found that buyers were willing to pay 15,000 or more for solar-powered homes.

    Calculate The Added Value of Your Home With Solar

    The results presented in the calculator above are generated using estimates provided by Blue Raven, and the Appraisal Journal. The output value is an estimate and should not be used as a legitimate appraisal.

    Factors That Influence the Added Value of Solar Homes

    Your total home value increase depends on additional variables, including your local housing market, solar system condition and location. We’ll explore these factors in detail.

    Electricity Rates in Your Area

    Solar-powered homes help homeowners reduce their energy usage and save on energy bills. These savings are bigger in areas with higher average utility costs. According to the U.S. Energy Information Administration (EIA), the average household utility bill is 117.46 per month. However, some states exceed that monthly average, making them better housing markets for solar systems. The following states have some of the highest average monthly electricity bills in the United States:

    State Average Monthly Utility Bill

    Data from the U.S. Energy Information Administration (EIA). Energy-efficient homes in places such as Orlando or San Francisco hold more value since the average monthly electricity costs are higher. Homebuyers benefit from long-term savings and sellers profit from the higher market value of their solar-powered homes.

    Local Solar Market

    • California
    • Texas
    • Florida
    • North Carolina
    • Arizona
    • Nevada
    • Georgia
    • New Jersey
    • Virginia
    • New York

    Owned vs. Leased Solar System

    Homeowners must ensure they can legally transfer their solar system to the new owners when selling their home. Most solar companies have several payment options. Two options — full payment and solar leasing — give homeowners the greatest flexibility when selling a solar-powered home.

    Full payment is the best way to guarantee a smooth transition for the new buyer. This requires a large up-front investment from the original owner to own their system, but makes it easy to include the system with the home sale.

    With solar leases, the solar company retains ownership of the system. Solar leasing transfers require either a lease buyout or a transfer. With a buyout, the owner pays off the remaining balance for the system to close the lease. This allows the home buyer to start a new lease with the solar company. Depending on the time remaining on the lease, this could result in a large lump sum payment.

    With a lease transfer, the current lease moves from the buyer to the new owner. The new owner takes over the lease and any remaining time on the contract. Most companies require a credit check to ensure the new owner can take over the lease. This could delay your home sale if potential buyers don’t meet the company’s requirements.

    Solar System Condition

    Your home value will increase considerably if your system is up-to-date and in excellent condition. Outdated systems in poor condition won’t attract buyers and could deter them. If you’re interested in selling your home with a solar system, ensure it’s in peak condition by performing regular maintenance and upkeep.

    Age is another variable that could lower your home’s resale value. Most solar systems last 25 to 40 years with excellent maintenance and care. If your system is already 10 or more years old, the new owners might have 15 years of use after their purchase. Any homes with a solar system older than 10 to 15 years won’t benefit a buyer.

    If you’re considering purchasing a home with a solar system, ask the sellers for full documentation on the system. They should provide details from the original sale, warranty coverage. technical issues and service repairs. You should receive a complete solar system history from installation to the present.

    Will Solar Panels Increase My Property Tax?

    Major home improvements, including energy efficiency upgrades, add property value to your home. In turn, your property tax increases. Several states have laws in place to protect homeowners from additional property tax for solar systems.

    things, know, buying, house, solar, panels

    According to the SEIA, 36 states have property tax exemption laws that allow residents to install solar energy systems without the added property tax. These tax exemption percentages vary from state to state. For example, Colorado and New York residents qualify for a 100% exception, but North Carolina homeowners get 80%. Check your state’s policies for property tax exemptions available in your area.

    How To Save on a Solar Power System

    Investing in a solar system requires a large up-front cost. Although this prospect can be overwhelming, the system will eventually pay for itself from your long-term energy savings. There are also several rebates and incentives available to help offset the initial cost.

    things, know, buying, house, solar, panels

    Solar Tax Credits and Incentives

    Homeowners who own their solar system qualify for the federal government’s Solar Incentive Tax Credit (ITC). also known as the federal tax credit. This provides a tax credit equal to 30% of your solar panel installation costs and can be claimed during tax time. The rate will reduce to 26% in 2033 and 22% in 2034. It will end in 2035 unless extended.

    Some states offer additional solar savings with state tax credits and exemptions. Similar to the federal tax credit, the state credit applies to your state tax liability. Other programs include sales tax exemptions that allow you to purchase your solar system without sales or local sales tax. These programs vary in availability and savings.

    things, know, buying, house, solar, panels

    Solar Incentives by State

    Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming

    Net-Metering

    Net-metering programs allow customers to sell their excess solar energy back to the grid for credits. These credits are applied to their future utility bills or paid out at the end of a calendar year. Some states have net-metering laws, while other programs are available through certain utility companies.

    Solar Batteries

    Solar customers can install solar batteries to store their excess electricity for later use. Stored energy can offset high electricity rates and keep your energy costs low. Solar batteries also provide power during cloudy days, blackouts or any time your solar panels are unavailable. Adding a solar battery to your system also increases your cost savings, making your solar system more valuable.

    We recommend using the Database of State Incentives for Renewables and Efficiency (DSIRE) to check for available solar incentives, credits and net-metering programs in your area.

    The Bottom Line: Do Solar Panels Increase Home Value?

    Solar panels raise home value thanks to their long-term energy savings, generating increased interest from home buyers. Real estate agents are more likely to mark up the price of a solar-powered home versus a comparable home.

    Before purchasing a solar-powered home, it’s important to get the full details of the solar system to check its condition and history. If you’re a homeowner considering moving to solar power, we recommend getting quotes from at least three top solar companies to find the best rates. You can use the tool below to begin your search.

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