The benefits of installing a solar array include energy cost savings, a positive environmental impact, and renewable energy tax incentives and rebates. But did you know solar can also have a huge impact on your home value? In today's highly competitive and expensive housing market, solar energy can add value and increase the sale price of a home. Buyers are more focused on sustainability and are increasingly prioritizing energy efficiency when evaluating a home purchase. Most buyers view solar as a major home improvement.
Houses with solar – either rooftop or ground mounted – have a significant market premium. According to a study done by Zillow in 2019, houses with solar installations sell for an average of 4.1% more than those without solar. These findings were confirmed in a 2022 study published in the Journal of Management in Engineering.
These benefits can increase depending on your location. A study done by national home appraising experts in Washington D.C. found that solar-powered houses in the D.C. area sold for 7.7% more than those without. Another recent study published in the Journal of European Real Estate Research further supports the added home value benefits, stating “valuation experts further validate the positive influence that on-site energy production has on property valuation.”
These diverse studies collectively paint a powerful picture of the economic advantages associated with solar installations. Let's dig deeper into the reasons behind these price premiums.
Energy savings can be used in marketing your home to potential buyers. A study done by The American Council for an Energy-Efficient Economy found that on average, houses that disclose their energy costs sell faster, and sell at a higher percentage than their original listing price.
Many homes with solar have little to no electricity costs, so the added benefit of disclosing a very low utility cost can absolutely help sell your house. This is particularly true in states like Massachusetts, where residents pay 25% more in electricity than the national average. Massachusetts also boasts some of the best incentive programs in the nation, like the SMART Program, and various other tax credits for residential solar adopters, making solar more appealing for potential home buyers.
Ever wonder why other forms of renewable energy infrastructure don’t enjoy these same advantages? After all, wind turbines, high-efficiency HVAC systems, and other green home additions seem like viable options.
The answer is simple: none of these systems have been proven to consistently increase home value like solar installations. According to a meta-analysis study published in Energy Research & Social Science, solar installations are “the only energy infrastructure associated with consistently positive property value increases.” Solar power is a smart investment that pays off not only in energy savings but also increases your home’s worth.
In addition to reducing your carbon footprint, harnessing energy from the sun is a powerful investment for immediate utility bill savings and for your future home sale.
