Installing Solar Panel system can increase home or property value. A 2015 study (largest study ever) showed that homebuyers have been consistently willing to pay more for homes with photovoltaic solar energy systems. Therefore, for real estate investors, installation of solar energy means increase in property value by 3 to 4 percent.
Factors that Determine Increase of Home or Property Value
The Location of the Property
Location is definitely the most important factor that homebuyers consider while purchasing the property. A good location offers the occupants close proximity to essential amenities and is easily accessible. Is your property close to or in a sought-after waterfront location? How close is the property to public transport, shops, schools and other important amenities? Consider that a property that is close to the essential amenities has a high demand. In addition, if the demand exceeds the supply, the rule of the thumb is that prices will increase.
The size of solar Panel System Installed
The value of the property is also proportionate with the number of solar panels installed. As you scale up, the value of the property increases. Consider that a larger installation means a higher solar energy capacity. This has an equal effect on the utility bills. Research has shown that by installing a 5 kWh of solar panel can add up to an average of about $30k to the retail value of the property. As the cost of electricity increases, this amount goes up. Therefore, through installation of solar panels you can be able to attract buyers who are willing to pay more. Moreover, you have a better chance for selling the property faster.
The Value of the Home
Larger houses also receive a higher nominal boost when it comes to property value. Although this might have a lower impact on the value of the home, it is important that you put up a property that meets the requirements of modern-day homebuyers.
Additional Facilities that Increase the Value of a Property
The property value also increases if you have other facilities like concrete pavements, a nice landscape, as well as a properly done outdoor. For instance, a swimming pool and a well maintained lawn helps to increase the property value. Consider that a pool might cost a significant amount to install and takes time to setup. Not many homebuyers want to undergo the hustle of installing a pool. Thus, a ready swimming pool will increase the demand for the property and as illustrated, increases the value.
Solar energy is a key selling point for a home. This is because it comes with reduced power bills. In addition, it is an environment conscious investment valued by environmentalists. As illustrated, a property with a ready installed solar energy system attracts more value.