Going Solar in These Top 10 States Will Increase Your Home Property Value
According to a recent report by Solar Energy Industries Association (SEIA), the U.S. installed 2.1 GW of solar capacity in Q2. The solar industry reached new heights after hitting a 2 million milestone of total solar PV installations. As the industry continues to adopt solar technology, these numbers are expected to double in a matter of four years. We know solar PV helps homeowners save money on their electric bills with cleaner energy, but does it boost their home property values? And by how much?
A recent Zillow research reports that some states are proving that solar power does in fact increase a home’s value. The report also shows that homeowners are evaluating their return on investment with solar energy and how this investment lumps into the same category as similar home improvement projects like kitchen renovations.
Rooftop Solar Can Increase the Value of a Home by Up to 4.1%
Zillow conducted research on solar and the research shows solar PV can actually increase the value of a home by up to 4.1% versus homes with no solar panels. This figure translates to an additional $9,274 for the median-valued home in the U.S. The report proves there are more benefits than just reducing monthly utility bills and sourcing cleaner energy. As more and more states require solar panels on new homes (and buildings) and with the continued growth in solar installation, homeowners will find additional value to solar installation.
In addition to saving money on monthly utility bills, homeowners find value in homes that allow them to live more eco-friendly. Climate change has greatly impacted severe natural disasters and the appeal of living more conscious-minded is becoming a trend–even within home buyers.
Zillow Senior Economist, Sarah Mikhitarian, states, “There is increased demand for green living. More than 80% of buyers now say energy-efficient features are important in selecting their home.”
Let’s take a look into the report that compares the sale price of homes with and without solar between March 2018-February 2019. Zillow analyzed various details for this report such as: location, market value at the time the property was listed for sale, as well as the time of the year the home was sold.
Top 10 States With the Highest Solar Premiums
- New Jersey: 9.9% or $32, 281 for the median-valued home.
- Pennsylvania: 4.9% or $8,589 for the median-valued home.
- North Carolina: 4.8% or $8,996 for the median-valued home.
- Louisiana: 4.9% or $7,037 for the median-valued home.
- Washington: 4.1% or $15,916 for the median-valued home.
- Florida: 4% or $9,454 for the median-valued home.
- Hawaii: 4% or $24,526 for the median-valued home.
- Maryland: 3.8% or $10,976 for the median-valued home.
- New York: 3.6% or $10,981 for the median-valued home.
- South Carolina: 3.5% or $5,866 for the median-valued home.
It is important to note that no solar premium is the same throughout the entire state, it actually depends on the city itself. For example, homes in New York City are 1.8% higher than it is statewide.
Does your home state fall under this list? What do you know about solar in your home state? Join the millions of homeowners who are making the switch each and every day towards a cleaner future with great energy savings that will pay off in the future. Get started today with a trusted Energy Advisor to learn about the best solar options for your home.
Report by: Zillow