Solar Payback

Home Value Increases

Lock in Your Own Electricity Rates for the Future

Solar panels are one of the few home improvements guaranteed to increase the value of your home. Most home renovation choices are subjective — you may love upgrading to granite countertops this year, but when you try to sell your home, you find the buyer wants stainless steel. In contrast, the value of solar panels is objective: they decrease your electric bills, providing value to you and anyone else who owns your home.

See Your Home Value Increase Over Time

According to a study published in The Appraisal Journal, a home’s value is increased by $20 for every $1 reduction in annual energy savings. So if you saved $1,000, you’d increase your home value by $20,000. And the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy says that a home with solar will sell twice as fast as a home without solar. A recent Business Week article reported that homes with solar panels sell faster than non-solar homes and at a higher price.

And unlike most home improvements, which depreciate in value with age, solar panels will increase in value over time as electricity prices rise. What will electricity prices be in the future when you sell your home? The higher they are, the more people are willing to pay for an efficient home, so solar panels are like a hedge against increasing electricity rates. So even if you don’t plan to stay in your home for a long period of time, your solar panels are still a good investment — better even than a kitchen or bath remodel.