Written by Sarah Lozanova
There will be an estimated 3 million solar systems across the U.S. by 2022. As solar panel installations become more prevalent in Atlanta and throughout Georgia, more solar-powered houses will be listed in the real estate market. It is increasingly important to understand how to value the solar power upgrade.
Many solar shoppers want to understand the financial aspects of installing a solar energy system in Georgia. Although the Solar Plus team can estimate the electric bill savings with Georgia Power, how exactly your solar energy system impacts your home value is a bit more complicated. Let’s explore this interesting topic.
How much does installing solar panels boost my property’s resale value?
Numerous studies find that going solar boosts your home value compared to comparable homes without solar. Installing a solar energy system is a home improvement that increases your property value. Although the exact findings of various solar resale studies vary, they all come to the same conclusion. Adding solar to your home increases its resale price.
A 2019 Zillow study compared similar homes with and without solar systems that sold in 2018. Zillow estimates the median-priced home with solar panels sold for $9,274. It also discovered that solar homes sell for 4.1% more than comparable homes without solar panels.
Why do solar-powered homes sell for more?
Solar houses are far less expensive to power than non-solar homes. Installing a solar PV system will dramatically lower your Georgia Power bills. Many Solar Plus customers save more than $1,000 on their power bills each year! Under “monthly net energy metering,” Georgia Power credits solar system owners for the surplus electricity they feed to the power grid. Unfortunately, there are a limited amount of slots for this program, so we recommend acting quickly to qualify.
Another reason why many homebuyers are willing to pay more for solar-powered homes is the growing concern about our planet and the use of fossil fuels. Owning a solar-powered house is especially appealing for people wishing to reduce their reliance on fossil fuels and decrease their carbon footprint.
Solar homes with a battery backup system are highly appealing because they are more resilient during blackouts. Having electricity during a grid outage can sometimes prevent frozen pipes or flooded basements. For homeowners with a home office, solar batteries can avoid productivity losses. Besides, solar energy systems with batteries offer peace of mind during blackouts and allow Solar Plus customers to enjoy all the comforts of home.
How can I calculate the value of a solar energy system?
Not all solar systems are created equal. Thus, the Solar Energy Industries Association created a guide on how to value a solar energy system. They explain three different valuation methods.
Income approach
This method involves calculating the value of the solar system based on the income the solar system will generate for the new homeowner throughout the remaining life of the system. The income approach involves calculating the electricity cost savings that the new owner would have otherwise paid Georgia Power for their electricity.
It is crucial to include solar energy equipment degradation when using this approach because the equipment is less efficient at generating electricity as it ages. Then, subtract out the costs of owning the solar system.
Cost approach
This valuation methodology uses the cost of reproducing the solar PV system that is installed on the property. The downside of this method is that solar equipment does depreciate over time.
Comparable sales approach
This method is similar to the approach in the Zillow study. It involves examining similar properties, both with and without solar systems. This approach requires finding at least two sets of comparable homes, where one has a solar system, and the other home doesn’t. As more people install solar panels on their homes, this approach will be easier to complete because there will be more comparable homes with solar.
What should I do to prepare for selling my solar home?
Start by determining if your solar system is in good working order. If it needs any repairs, it’s helpful to complete them before listing the home for sale. If a home shopper detects an issue with the system, it might make the house less appealing.
It can help to provide a copy of your solar system proposal from Solar Plus to the realtor. The proposal includes the solar energy system cost and warranty information. If your system is still under warranty, this is appealing for potential homebuyers. Also, your solar monitoring system and utility bills help show how much energy you are generating and how much money you are saving.
If you have any questions regarding selling or buying a home with a solar energy system, contact Solar Plus at 470-378-1182. We’re happy to help!