Solar Panels: Your Next Home Improvement Project

Solar panels can make living in your home a lot more convenient. If you are considering this as your next home improvement project then kindly refer to the information below:

Solar Power as a Home Improvement Strategy

When you make improvements to your home, it’s smart to take into consideration how they will impact your home’s value. The conventional wisdom from HGTV and home improvement magazines is that updating your kitchen, renovating your bathroom, or building an addition are the smartest ways to increase the value of your property. But there’s another home improvement that you may not realize adds to your property’s value: installing solar panels on your roof.

Multiple studies by Lawrence Berkeley National Laboratory (LBNL), a research laboratory funded by the U.S. Department of Energy, have shown that solar can improve the value of your home. LBNL’s 2015 Selling Into the Sun report analyzed sales of solar photovoltaic (PV) homes in eight different states over 11 years, with the goal of determining just how much value solar can add to your home. The finding: on average, homebuyers are “consistently willing to pay PV home premiums” of approximately $4 per watt of installed solar capacity. For a standard 6-kilowatt (kW) solar PV system, that means solar can add $24,000 to home resale value.

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Comparing a non-solar powered home with a solar powered one, given that everything is almost the same including the size of the house, the lawn, etc., the scale is always tilted to the latter when comparing real estate value. The main reason for this is that the tax credit for solar panel installation is at 30% in the United States while the resale value of a home with a solar panel system installed will necessarily be at its full price. Because of this, homeowners are considering these solar panel systems as a huge improvement project for every household.

The Value of Solar vs. Other Home Renovations

According to EnergySage data, the average cost of a solar panel installation in 2015 was $3.70/watt, which means an average 6-kilowatt (kW) system has a $22,200 price tag. Tax breaks and other incentives drastically reduce that cost – once you subtract the value of the 30 percent solar tax credit, your total solar installation costs are a little less than $15,600. The takeaway? When you sell your solar home, you’re recovering your costs and then some.

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By comparing the initial 22,000 dollars price tag of a 6-kilowatt solar panel system with its discounted price of 15,600 dollars due to the 30% tax credit, it can easily be inferred that a solar panel system can significantly increase the market value of a solar powered home. This is an undeniable fact. Not only will your cost of living be reduced when it comes to electricity, but also the savings that come with the use of solar power outweigh the costs. Compared with other home renovations like artistic gardens and fences, these solar panel systems can increase the value of the property by 7,000 to 10,000 dollars.

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