If you’re thinking about ways to add value to your home, consider this: solar panels can add as much value—if not more—to your home as a brand new kitchen does.
There are two kinds of value that a solar system can add to your home: investment value and consumption value.
Investment value is the actual monetary value it adds, increasing the sale price of your home. Studies have shown that for each 1kW of solar installed, your home’s value could increase up to $6000.
Solar panels can add up to 3-4% to the value of your home. For example, if your property is worth $300,000, that means an increase of anywhere between $9,000 to $12,000. On top of the extra monetary value that comes with solar panels, homes with solar panels also tend to sell faster than those without.
Consumption value refers to the environmental benefits of having an environmentally friendly energy source.
The amount of value that a solar panel system can add to your home depends on a number of factors. These include:
1. Location of your home – Installations in more active solar markets can get you a higher return on your investment than the same installation in a less developed market.
2. Size of the installation – Your property value’s increase is directly related to the number and quality of solar panels you have installed. The more you have, and the better quality they are, the more your home’s value will increase.
3. Value of your home – Larger, more expensive homes equal higher boosts in property value when a solar panel system is installed.
We understand that life changes and unexpected events can occur. So what happens if you’ve invested in a solar system, but you need to sell your home before your contract with your local hydro company is finished, in case you have a FIT contract? If you’ve had your system long enough for it to be paid off and you’ve started receiving cheques from the hydro company, you’re selling an extra source of income on top of your property. This will be very attractive to potential home-buyers as a source of income for them as well.
The fact is, traditional electricity prices are going up. As these prices increase, the advantages that come with having a solar system in your home rise with it. And unlike other additions to your home, solar panels add value to your home from day one.