For years it’s been touted as common knowledge that energy efficiency and renewable energy raise the overall resale value of a home. Recently Lawrence Berkeley National Laboratory released a new study. This study reviewed resale value of homes with solar panels in California and found sufficient data to support the claims of increased resale value.
There are many types of solar panels available today. One of the most popular is photovoltaic (PV) panels. The study analyzes the comparison of homes sold with PV systems against those without any type of solar panels. The data consists of homes in California sold in the years 2000 - 2009. The overwhelming finding was that on average the sales price of a home with a relatively new, average sized PV system increased in value by almost $17,000.
Those in the renewable energy services industry are not surprised by these numbers. It is encouraging for prospective clients to realize that the resale value of their homes will increase. In many cases these home owners will recoup almost the entire cost of the solar install. However, the real benefit is realized immediately in the form of fixed energy costs that will be enjoyed for the next 25 years or more.
The study also found that “When expressed as a ratio of the sales price premium to estimated annual electricity cost savings associated with PV, an average ratio of 14:1 to 22:1 can be calculated; these results are consistent with those of the more-extensive existing literature on the impact of energy efficiency (and energy cost savings more generally) on home sales prices”. It is no surprise that savvy investors in the market would be willing to spend a little more on the initial price of a home to hedge the energy costs.
As the energy demands continue to rise, advancements in solar energy technology are needed more and more. Now with confirmation of solar investment, more and more people may be willing to make the upfront investment.
