The real estate market in the USA is constantly under the influence of various factors. In recent decades, solar technologies have been added to this list. After all, every year Americans install more and more systems for generating electricity from sunlight. The gradual increase in their number has a significant impact on the market situation. The main consequence is an increase in the cost of housing that is equipped with solar systems.
The price increase is quite logical since the presence of structures provides additional benefits for residents. Among them is not only a depletion in the impact on the environment but also a financial benefit. Mainly, it presents itself in a significant reduction in the payment of communal services and the possibility of saving money. We offer to learn about the value of solar systems and the situation in the real estate market in more detail.
Source: Zillow
How Has Solar Power Affected the Real Estate Market?
Currently, this sector is seeing a trend of around a 4.1% increase in the value of homes with solar systems installed. Such data is confirmed in the Zillow study. Taking into account these indicators, we can conclude that the price of solar real estate will increase by an average of 9,000-9,200 dollars. Another study confirms the active increase in the price of objects.
According to data provided by the NREL (National Renewable Energy Laboratory), every dollar saved on energy bills increases the value of a home by an average of $20. Information about a significant increase in cost is also confirmed by state authorities.
Representatives of the Ministry of Energy, citing their surveys, indicate that buyers agree to pay higher amounts for real estate with solar systems. It is even about a significant increase in price (up to approximately 10-15 thousand dollars). In addition, a faster rate of sale of such houses was observed. That is, when choosing between an ordinary object and real estate with real solar energy, Americans more often choose the latter option.
An important factor that has a significant impact on this trend is the lifetime of solar systems. Many sources say that the cost will increase in any case. It doesn’t matter if the solar panels are used for just one year or 10 years. However, after analyzing the indicators in the market, it is possible to conclude about a reduced reward for houses with older systems.
This is not a problem. After all, the owners of such real estate receive a financial benefit during the entire period of operation of the systems. In addition, when contacting solar companies, you can count on certain benefits and financial incentives. This is another factor that makes investing in solar energy worthwhile. Overall, a home with solar panels is a very valuable piece of real estate. This is due to several factors:
- Increase in value during resale
- Increased interest from buyers
- Accelerated sales
All this is confirmation that it is profitable to invest in a green power home. This is especially true for the long term.
Should You Install Solar Systems if You Don’t Plan To Sell Soon?
Selling real estate is a critical decision that usually takes more than one day. That is why some owners doubt the expediency of early acquisition of solar systems. If we study this issue more carefully, it will become clear how profitable the designs are. Investments in solar systems pay for themselves relatively quickly, and during this period you will be able to save a tidy sum.
It is about saving on electricity bills. While you are dealing with solar-powered homes for sale, the installations will help to significantly reduce your electricity bills. A clean record can be an additional incentive. This is a special program that can be in use by owners whose systems generate a certain amount of excess electricity. Local electricity suppliers can buy this volume. Thus, it will be possible to get additional financial benefits.
What Future Awaits Sun Real Estate?
Solar systems are promising solutions that will bring benefits not only in the near future. This is because these technologies are based on the use of a renewable energy source. In the conditions of gradual depletion of fossil and other resources used for electricity production at conventional power plants, the use of alternative sources is very relevant.
This allows for reducing the load on traditional systems and reducing the negative impact on the environment. That is why the government is also involved in supporting the transition to solar systems. At the state level, several programs allow you to reduce installation costs, as well as a quick return on investment. The existence of such incentives, as well as a strong advantage when selling real estate, makes solar systems a profitable object for investment.
What Does the Increase in the Cost of a House With Solar Panels Depend On?
Any property that is equipped with solar systems has a high market value. According to some data, it even sells faster than other objects. However, many owners are interested in a more in-depth study of the issue. For example, what exactly affects the added value of houses with solar systems? Let’s consider the main factors.
Location of the House
This factor stems from the peculiarities of the operation of solar systems. Constructions are most effective in regions with a large number of sunny days. Under such conditions, they can reduce the payment for utility services as much as possible, so the added value of real estate increases. An additional factor that can increase the price of solar real estate is the emphasis on environmental friendliness.
In certain regions and cities, the local government is particularly active in calling for the transition to green technologies. Being in this area also increases the value of homes with solar systems. In addition, regardless of location, government incentives and financial support are taken into account. These factors increase the price of an object in any area.
Electricity Prices
Another factor affecting the value of solar energy real estate is the electricity tariff. Solar installations are most effective in cities and regions with high utility rates. Constructions contribute to a significant reduction in bills and cost savings. They will have particular value in several states: New York, Texas, and California. In these regions, the average cost of electricity bills is $100 or more per month.
Ownership of Solar Systems
Currently, buyers in the United States have several options for obtaining solar panels at their disposal. It can be not only a direct purchase but also the transfer of construction for rent. In the latter case, certain difficulties may arise with the determination of the ownership of structures during the sale.
That is why it is worth studying in advance all the conditions and procedures for carrying out the procedure, as well as coordinating this issue with the supplier company. If the solar systems are owned by the homeowner, they can be transferred without any problems when the property is sold.
Conclusions
Solar systems are always a profitable investment. One of the advantages is the possibility of increasing the value of a house equipped with such structures. Currently, several positive trends are observed in the real estate market. The first is that the price of houses is constantly increasing.
In addition, various studies have revealed increased interest in such objects and accelerated rates of their sale. This situation is not accidental. Solar systems provide owners with several benefits. Among them are reduced electricity bills, environmental friendliness, the possibility of receiving financial benefits, etc.