If you’re looking to sell your home, a good way to make money is to invest a little bit of it into adding solar panels. Many people look to greenhouses or swimming pools to make value go up, but they mostly add additional expenses that many new homeowners don’t want to deal with. Home solar panels, on the other hand, save homeowners money in the long term.
How Do Solar Panels Increase Home Value?
According to a 2008 report from the National Renewable Energy Laboratory (NREL), every dollar saved on energy costs through solar generation increases home value by $20. In other words, $100 in monthly energy savings can lead to a $2,000 appreciation in home value. On top of that, homes with solar panels sell for four percent more, on average, than homes without them.
Why Do Solar Panels Increase Home Values in Colorado?
First, there’s a very high demand for homes with energy-efficient upgrades. In Colorado, the desire to live a greener lifestyle is quite popular. Residential Solar panels not only fit this need, but they allow homeowners greater control over their energy costs. As of 2020, nearly 300,000 Colorado homes, or roughly 17% of all residential dwellings, have solar panels installed, and the number is constantly growing.
The precise value that solar panels add depends on where you are. Some less sunny areas in Northern Colorado may see smaller increases in adding value compared to sunnier communities. Wealthier or more urban communities also have higher solar demand. For example, the Denver metro area is one of the top ten in the United States for solar installations, and houses in the Front Range often won’t sell at all without panels installed.
Second, Colorado solar panel powered houses usually sell up to 20% faster than those without panels according to a 2007 NREL report. This means that you won’t have to worry so much about delisting or settling below your asking price. You’ll also save money on storage, transportation and mortgage payments.
Are There Any Other Benefits to Home Values?
If you’ve already installed other green additions, solar panels will further improve on energy savings and boost your homes value. For example, LED lights and ENERGY STAR-certified appliances see their energy efficiency increase dramatically. New homeowners will be thrilled when their heating and cooling costs are drastically reduced thanks to the combination of solar power and modern home insulation.
Are There Other Solar-based Ways to Improve Home Values?
Once solar panels are installed, you can consider installing a solar battery to store that excess energy. Another good option is to add an electric vehicle charging station that’s connected to the battery. As EVs become more popular, more homebuyers will be looking for these chargers. Both of these options will increase your resale value of your home even further and attract more environmentally conscious buyers.
Are There Any Disadvantages to Solar Installation in Colorado?
In short, no. Colorado has an average of 300 sunny days a year, and modern solar panels can stand up to the weather on the remaining days. A good suggestion is to install panels that have an “A” rating, which are better at enduring the winter. The sun also comes out often enough to melt any icy deposits before they can negatively affect energy production.
Additional Savings On Solar
Colorado Solar energy systems for homes and businesses are eligible for a state income tax credit in Colorado. Up to a $5,000 solar incentive credit for residential systems and $50,000 for commercial systems, the credit is equal to 25% of the system’s total installed cost. The Investment Tax Credit (ITC), a federal income tax credit, is another option for solar energy installations. Its current rate is 26% for both commercial and residential systems. This solar tax credit is scheduled to drop to 10% for residential systems in 2024 and to 22% for commercial systems in 2025. By reducing the cost of a solar energy system’s installation, these credits can make switching to renewable energy for homes and businesses more feasible.
How Do I Start the Process of Selling My Home?
First, make sure that you buy solar panels as opposed to leasing them. Homes with leased panels see no net increase in value since homeowners don’t want to be bound to previous contracts.
Second, ask for a qualified realtor who specializes in selling solar-powered homes. They’ll have taken special courses from the National Association of Realtors, so they’ll know the unique advantages and potential challenges of selling a solar house. They’re also more likely to connect you with a professional appraiser with expertise in valuing solar-powered houses. Most appraisers don’t take solar panels into account and offer lower values.
If you’re ready to buy solar panels, our local solar installation experts can provide you with a free home energy audit before installation. This will show you just where you might be wasting energy, and it will help us determine how many solar panels your home will need before it goes on the market.