Solar panel installation has become increasingly popular over the years. With some states and localities even mandating these projects on new homes, solar panels are going to become a reality for homeowners all over the country. Though they may not be on the forefront of your mind, it is a very important decision to make. The possibilities of lower electrical bills, a smaller carbon footprint, and an increase in home value are exciting prospects. Our focus here tends to be on the financials, so here we will break down the affect of solar panel installation on the value of your home. This is dependent on a few factors, so let’s go ahead and discuss those now.
Market
The affect of panels, just like anything else, is largely dependent on your market. In rural markets with fairly low demand for solar, the resale value of your home will not change too much after installation. In metropolitan regions like Southern California with large rates of participation, your home value can actually improve quite a bit. Simple economic standards are at work here; the more awareness and desire that exists in your area, the higher the value.
Quantity/Quality
Quality and quantity are very important factors when deciding the value of any addition to a home. The more panels you have, the more power they will provide. In the same manner, having more advanced panels can make them more efficient, reliable, and attractive. Everything here contributes to the monetary advantage that comes with solar panel installation. This is vital when coming to a decision in this regard, and it should help you decide whether you install sooner and go cheap, or wait until you have more funds at your disposal to perform a larger build.
Weather
This ties into the market conversation, but is important to point out. If you are in a cloudy, often rainy climate, then your solar panel installation won’t be as wise a choice. Even if your area is metropolitan and highly aware of solar energy tech, having them sit up there barely harnessing any energy isn’t going to boost your numbers much. In much the same way, being in a less demanding rural area can be overcome by high-performing panels in an extremely sunny climate. Not only does this matter for the value of your home, but if you don’t plan to sell your home, it’s the primary advantage to having them in first place. At the end of the day, the electric bill is what we are trying to fix here. The more sun you have around, the more power you will get from solar.
Trey LaRocca is a freelance writer, financial sales worker, and tech guy. When he isn’t out and about or at work, he’s usually at home enjoying some video games and a beer. Currently residing in Newport Beach, this California Kid can be found at the beach on any given weekend. Trey has years of experience in day/swing trading, financial analytics, and sales.