Do Solar Panels Increase Home Values?

More and more homeowners are installing solar panels on their homes. In fact, according to The United States Department of Energy, "Since 2008, hundreds of thousands of solar panels have popped up across the country as an increasing number of Americans choose to power their daily lives with the sun's energy." Solar energy systems save money on electric bills and improve home values.

Cost of Installing Solar Panels

The installation of a solar energy system can be quite costly. The Department of Energy says, "Thanks in part to Solar Energy Technologies Office (SETO) investments, the cost of going solar goes down every year. An article on forbes.com written by Rebecca Brill on March 16, 2023, states, "Solar panels cost, on average, about $16,000, or between $3,500 to $35,000 depending on the type and model. The cost depends on many factors including the size of your home and much more. You should consult with your local solar energy system expert for an exact quote.

Does Going Solar Save You Money?

There are several considerations that must be taken into account before you go solar for the sole reason of saving yourself money. First of all, you must consider the direction your roof faces and the amount of sunlight that hits it. It also depends on how much money you currently spend on energy costs and how much less you will spend after installing solar panels. The amount you save depends on the electricity rates your electric company charges you and how much your electric company will compensate you for the excess solar energy you send back to the grid.

There are different sizes of solar energy systems that can be installed, so you need to determine which size will start saving you money. You also have the option to purchase or lease your system. The Department of Energy says, "In some cities across the country, solar is already cost competitive with the electricity sold by your local utility company." The prices of panels are dropping. Installation fees are coming down. Getting permits and inspections is also getting easier and less expensive for consumers. It is best to consult with a local solar energy system company for better statistics in your area.

Another Value Going Solar Adds

Besides saving money, solar energy systems offer energy-efficiency and help save the earth. An article of energy.gov, How Does Solar Energy Interact with Wildlife and the Environment states, "As a renewable source of power, solar energy has an important role in reducing greenhouse gas emissions and mitigating climate change, which is critical to protecting humans, wildlife, and ecosystems. Solar energy can also improve air quality and reduce water use from energy production." You will reduce your carbon footprint by installing a solar energy system in your home.

Government Subsidies

There are government subsidies to offset the cost of going solar. According to an article on forbes.com, homeowners will receive a tax credit of 30% for systems installed in the years 2022 and 2023. This includes the cost of the solar panels, the cost of other solar equipment involved, the cost of power storage such as batteries, labor and sales tax. Many states also have solar incentives that you can take advantage of as well.

With the costs of solar systems going down there is more of a chance having them will save you money over time and increase your home value. A study by Berkeley Lab researchers and home appraisers found that solar panels are an upgrade to a home.