What Home Appraisers Need To Understand About Solar
We all know that solar is an important investment in our planet. Solar is a clean, pure energy source that is harnessed from the sun and reduces our carbon footprint. While the most obvious benefit of a solar home is the impact on Mother Earth, did you know that there are other benefits when it comes to your wallet?
- Did you know that solar can save you money on your utility bill?
- How about the fact that solar can increase your home’s value?
- Did you know that installing solar will give you a significant tax credit?
Do we have your attention yet? 😏
What Do The Experts Say?
With the increase in solar panel installations across the country in the past five years, home appraisers and real estate agents have been asking the question, “How does Solar impact a home’s value?”
There currently is not a standard value that real estate agents can attach to the home’s value. Since there is no set standard at this time, experts have conducted various studies across the country to find out just how much value a solar panel system can add to a person’s home.
While we could give you all the statistical information and an academia style analysis, for time sake (and the fact that we want you to keep reading), we will summarize everything in nice easy bullet points.
- The National Renewable Energy Laboratory cites a study in the Appraisal Journal, which shows that a home’s value increases $20 for every $1 reduction in annual utility bills.
- In other words, a solar energy system that saves $400 per year would add a value of $8,000 to your home.
- A study conducted in California from Lawrence Berkeley National Laboratory found that each kilowatt of solar capacity could add about $6,000 in value to a home.
- According to a solar research study conducted by Zillow, solar can potentially increase the home’s value by up to 4.1% more than comparable homes with no solar panels.
- The study – “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes” – found that buyers were willing to pay an average of about $4 per watt of PV installed. This equates to a premium of about $15,000 for a typical 3.75 kW PV system.
Not sure about you, but those are some numbers that I could take straight to the bank!
What About That Tax Credit?
The Federal Solar Tax Credit has officially been extended through 2022. The government has done all of us a solid by ensuring that the solar tax credit will remain at 26% for another year.
Finding The Right Appraiser
The key to getting your home priced right is to find a home appraiser that understands Green homes. The Appraisal Institute has seen how important this is for home appraisers and they have offered several professional development courses for home appraisers.
To find a solar appraisal specialist, you can use the directory from the Appraisal Institute. This can help you locate an appraiser that knows how to properly value a home with a solar panel system.
For More Information
At NC SOLAR NOW, we are North Carolina’s Most Trusted solar panel installer and embrace the philosophy that solar is for everyone! We’ll be by your side from your first free virtual consult through our warranty period and beyond. Visit us online at NC SOLAR NOW, send us a message, or call us at 919-833-9096.