These days, it seems like you see more and more solar panels on houses everywhere you go. What started out as a power alternative that you’d see on a house or two in some neighborhoods has become a large movement of people making the large front-end investment to save money on energy over the years they own their home.
The real question, of course, is whether solar panels are worth the investment. According to EnergySage.com, in Chester County, PA, it costs between $12,000 and $17,000 to install solar panels in your home. The site also predicts that solar panels will offset your electricity bill by anywhere from 70 – 105% (That’s right, over 100% – after a certain point, electricity companies will actually buy your solar energy back from you!)
Their calculations predict that installing solar panels will net you anywhere from $37,000 to $50,000 over 20 years – the investment paying itself off after 8 – 11 years.
Of course, that means that any people may hesitate to invest in solar panels if they know they won’t be in the house long enough for them to pay themselves off. However, those people are failing to take into account the fact that installing solar panels increases your home’s value quite a bit.
It’s true that the amount of value the panels add are very area-specific, but that’s a plus for Pennsylvania residents too: According to CNBC, PA homes with solar panels sell for 4.9% more on average – the second highest solar panel premium in the country, next to New Jersey. For homes of median value, that means an extra $8,500.
UK Realtor Michael John has done research on this as well, and posted a really illuminating blog on the subject. He may not be from the US, but the facts and figures in his research are still very helpful in showing the worth of a solar panel installation.
Deciding whether to invest in solar panels on your home can be a difficult decision to make. While there may be many benefits to accessing solar power, the initial investment needed can be a barrier for some people that are worried if it’s going to be worthwhile.
If you’re thinking about selling your house in the near future, then you need to make sure that you’re thinking about that final valuation of the house, as well as your potential profit margin. So, do solar panels increase house value in the UK and if so, how much do solar panels raise home value by?
Knowing the answers to these questions could help you make a more well-informed decision, when it comes to the future of energy in your home.
Will Solar Panels Increase My Home’s Value?
You probably already know that adding photovoltaic solar panels will drastically reduce your carbon footprint and save you money on your electricity bill, but will they help when it comes to selling your home?
You’ll be pleased to know that there has been some research on the subject, which points to not only an increase in value, but also a greater level of interest and a faster sale for homes with panels than those without.
How Much Do Solar Panels Raise Home Value By?
In sunny California, you can add a staggering $6,000 for every kilowatt of solar energy installed, onto your property price. The UK doesn’t enjoy quite as much sunshine as California, of course, but all of the evidence shows that solar panels still increase the value of the home, often far beyond what they cost to install.
The Department of Energy and Climate conducted some research back in 2013 and found that energy saving home improvements, such as solar panels, added an average of £16,000 onto your home price, boosting house prices by up to 14%.
The average sized home in the UK may be expected to spend around £6,000 to £8,000 on a 4kW solar panel system. In which case, there is a lot to be gained financially from the installation of photovoltaic systems in the UK.
Benefits of Installing Solar Panels
Solar panels are viewed as home upgrades, much like a brand new kitchen or converted attic space, often adding value to the final property price that is beyond what was originally spent. Buyers are keen to invest in more energy efficient homes as they feel safe in the knowledge that these homes will be less expensive to run in an uncertain future. In many cases, a certain level of energy independence is also a very attractive option for buyers.
Summary of benefits:
- More energy efficient
- More energy independent
- Lower carbon footprint
- Increased appeal to buyers
- Increases value of home up to 14%
Now you know for sure that solar panels will add value to your home, what are you waiting for? Not only will the installation cost come back to you in the money you save over the years, but if you choose to sell your home instead, you’ll be able to make the money back on the asking price!