Inspired by the possibility to save money on energy costs, to live in a green home, or even to generate extra money by selling energy back to the utilities companies each month, many homeowners have at least pondered the possibility of installing solar panels on their home at some point. Solar panels are designed to collect and convert energy from the sun’s rays into usable energy for your home. It can power your HVAC system, electronics, lights, appliances, and more. Depending on the type and number of solar panels you install, you may be able to partially or fully source all of your energy needs from the sun most days of the year through a solar powered home, especially if you live in sunnier cities like Long Beach, California.
However, the financial aspects of a solar powered home must be considered. After all, the cost of installing solar panels can be substantial, and you may need to know if you will be able to recoup the cost of this investment through your use of the panels or by selling your home. Factors related to how long you plan to stay in the home and how much energy you use are just a few factors that will determine if you will recoup the cost through energy savings. A closer look at how a solar-paneled home will affect your resale value may also be a concern.
The Impact of Solar Power on Home Value
As a homeowner, you understandably see the value that solar panels can provide to you on a regular basis. This is because the solar panels will produce energy that directly offsets your own energy bills for financial savings. When new home buyers tour your home, they will likely see this as a financial benefit as well. After all, if they choose to purchase your home, they will also benefit from having reduced or no energy bills as a result of the energy panels throughout their entire time in the home. This can add up to a tremendous amount of money over time. With this in mind, solar panel installation can have a direct and positive impact on property value.
The Appeal of a Solar Powered Home to Future Home Buyers
When you make upgrades to your home, you may be focused on making upgrades that will have broad appeal to many buyers and that will have a positive impact on property value. Solar powered homes can appeal to anyone rather than only to environmentally-conscious individuals. After all, everyone will have energy bills to pay and would like to save money on energy costs. Some buyers may also specifically be looking for an energy-efficient or green home, and your property may be a top option for these buyers. Keep in mind that other improvements, such as renovating the kitchen, may need to appeal to a buyer from a stylistic standpoint. It can be hard to appeal to every buyer’s sense of style. Therefore, this type of home improvement has limited appeal in comparison to what a solar powered home brings to the table.
The Importance of the Home’s Location
When a potential buyer is interested in your home, there is a good chance that he or she would like to learn more about the energy production capabilities of your solar powered home. For example, the buyer may ask to see your utility statements for the last year to see the savings for himself or herself. Your home’s location will play an important role in how effective solar panels are to produce enough energy for the home. For example, homeowners in Long Beach as well as in Arizona, Texas or Florida where sunshine is ample throughout most of the year may benefit from solar panels. If you live in a very cloudy area, your energy production capabilities may be reduced. You may still recoup some value for the solar panels when you sell your home, but the appeal may be reduced in comparison to the appeal a buyer in a very sunny state may have.
The Overall Cost of Solar Panel Installation on Residential Buildings
You may be wondering how much it costs to benefit from having a solar powered home. Installing solar panels to your home varies based on your location, the types of solar panels you want to install, how many panels you want to install, and more. The average homeowner will spend approximately $36,000 for solar panel installation. This may sound like a lot, but keep in mind that government credits are available to bring this cost down closer to $21,000 in out-of-pocket expenses. Having a solar powered home can seem expensive, but keep in mind that you may use various methods to fund the purchase of solar panels, such as by applying for a home equity loan. You can then enjoy the energy savings in your budget to offset the higher mortgage loan payment.
How Much Money Can You Recoup?
You may think that you would pretty much break even financially by having a solar powered home. This is because your loan payment to pay for the installation of the panels may be offset by the energy savings you enjoy each month. However, you should not overlook the important factor of the increase in property value that you can enjoy by having a solar powered home as well. Keep in mind that the average net cost of solar panel installation is approximately $21,000. You may expect to recoup between 95 and 102 percent of this amount when you sell the home at a later date. Therefore, when all factors are considered, you can see that installing solar panels actually makes great financial sense.
You may be interested to learn more precisely what the installation of solar panels will do to your home value. Perhaps you want to sell a home that has solar panels on it, or you may be in the market to purchase a solar powered home. Regardless of your plans, Evergreen Properties and Investments can help you to achieve your real estate goals in Long Beach.
From the Author: My name is Dan Barcelon and I believe that Real Estate can be one of the most valuable assets you’ll ever own. I’m dedicated to educating and guiding my clients on how to manage and leverage their homes to create an Evergreen legacy for themselves and their family. I primarily consult both home buyers and home sellers on reaching their personal and financial goals through Real Estate in the following cities of Southern California: Long Beach, Carson, Cerritos, Signal Hill, Torrance, Lakewood, Cypress, Downey, Bellflower, Norwalk, Wilmington, La Palma, and Artesia.
If you’d like to discuss if buying, selling, or investing in real estate is right for you at this time, feel free to reach out. You can call/text me at 562-270-5812, or you can e-mail me at danb@EPIrealestate.biz.