Adding solar panels to a homes can not only save energy costs and the environment, but it can also potentially add value to a home. Last year, houses with solar systems sold an average of 4.1% more than comparable houses without solar energy. For the mid-value home, that translates to an additional $ 9,274. The sales premium varies considerably depending on the market. For example, in Riverside, California, homes with solar panels sold 2.7% more than comparable homes without solar power – a $ 9,926 markup for the mid-range home on the subway. In metropolitan New York City, solar-powered homes have a premium that’s twice that of Riverside. At 5.4%, that’s an additional $ 23,989 worth of a typical New York home. In three other subway areas on the coast – Los Angeles, San Francisco, and Orlando, Florida – homes using solar energy can earn around 4% premium.
One reason solar houses sell more than houses without solar is because they can provide significant energy cost savings in the future. For homeowners who know they are using a lot of electricity, these future savings are well worth spending a little extra cash upfront. It is also possible that houses with solar energy systems are more likely to have other features that are difficult to measure yet valuable, such as underfloor heating, which could add to the solar energy premium. Personal preferences also play a role: More According to the Zillow Group’s Consumer Housing Trends Report, more than 80% of home buyers say energy-efficient features are important.
methodology
We calculated the solar premium by comparing homes with and without solar panels that were offered for sale and sold from March 1, 2018 to February 28, 2019. We checked the observable properties of the houses such as bedrooms, bathrooms, square footage and age of the house and its location.
