Solar Increases Home Property Values

Research suggests that homeowners with solar PV will recoup the cost of their solar investment upon sale of the home. Homes with PV systems sell for a premium over comparable homes without PV systems, according to a study of home sales in California from 2000-2009 by the Lawrence Berkeley National Laboratory.

Comparing 2,000 solar homes with 70,000 non-solar homes, LBNL found that solar increased the resale value of existing homes by about $6 – $7.7 per watt and new homes by about $2.3 – $2.6 per watt. On average, solar PV added about $5.50 per watt to the home’s resale value.

The study suggests that the premium is comparable to the average net installed cost of the PV system. So, in other words, the system cost will be recouped at sale. In addition, PV owners benefit from electricity cost savings up to the date of sale.

SunRun, a home solar service company based in California, created this infographic based on the study with a link to research on the impact of solar on home values. Long story short, solar creates value.

[PDF] Review the home sales analysis by Lawrence Berkeley.

Credit: SunRun.

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  • Justin

    I don’t believe these stats at all.  I currently have a home for sale with a 5.7 Kw system, and many people have looked at the home.  Most people think the panels are cool, but none actually care that the house has them.  I find the general public still does not care about green building if it’s going to cost more.  My house is currently listed at $2.55m no one is going to pay an extra $31k because it has solar.  Maybe this plays out different in different markets?

    • Preston

      When talking about the difference between $2.51m and $2.55m, I find it hard to believe the $31k solar is keeping buyers from buying your place. Without knowing more, it seems more likely that buyers don’t believe they’re getting $2.55m worth of home, green or not.

      • Justin

        It’s not keeping them. My point is I can’t charge any extra for them. $2.55m is the appropriate price for comparable houses. I cannot raise my price cause mine also includes solar which the others do not. The average buyer doesn’t care.

        • Skot Colacicco

          I think it also has to do with the attitude towards green in the location of the home. Also, if many homes in the area already have solar, and therefore it isn’t as much of a unique draw.

          Where I live, in the Bay Area, it varies from city to city whether the solar panels on a home command a higher price, or draw more interest, although over all it is almost considered a ‘standard’. Homes without solar will go slower than homes with solar included, unless there is some other feature that makes it unique.

          Either way, in this economy and current state of Real Estate, it’s useful to use every advantage you can.

  • Elvinawilliam

    nice article about home improvement

  • Doug

    I concur with Preston my wife’s a realtor and all homeowners want top dollar regardless what the homes around them are selling for, price it right and it will sell

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