Study Finds Homes with Solar Panels Are Worth More

MILAN, N.Y. - Feb. 16, 2016 - PRLog -- The Lawrence Berkeley National Laboratory and the Appraisal Institute have released a report based on the findings of joint research showing that solar panels installed on a home can increase its resale value.  The research found that on average a 3.6 kW solar power system increase the home's resale value by $14,000.  Conducted over several years, the study looked at 43 pairs of comparable homes in six US states, to determine the influence the presence of a solar power system had on the price the home sold at.

The report, entitled Appraising into the Sun: Six-State Solar Home Paired-Sales Analysis, is a summary of the analysis of 43 pairs of comparable homes by seven appraisers.  Using comparison techniques commonly used in real estate appraisal, the study compared homes that have owned solar power systems with those without solar power systems.  The study uses both the paired-sales appraisal method and statistical models.

The study seeks to settle questions that have arisen as to whether or not solar power present on a home's roof and owned by the homeowner raises the home's resale value.  The report found there was a range of increases in value, from a low of $2.68 per watt installed up to $4.31 per watt installed.  In all cases, however, there was an increase in property value, which was realized when the home was sold.

There has been a dearth of reliable information on whether owned solar power systems add value or not, and as a result the presence of such systems has typically not been taken into account by appraisers and mortgage lenders.  The report will be appreciated by these players in the market as providing a realistic view of their influence.

There are already estimated to be over one million homes with solar power systems in the United States, so the effect a rooftop solar power system has on value is becoming significant.  This is only expected to increase in the coming years, with governments worldwide committed to reducing their carbon footprint.

The report recommends ways to improve the valuation of homes with solar power systems.  Five suggestions are:

Improving the availability of documentation on home solar power systems

Providing solar power system net cost data

Including solar power system details in searchable home realtor listings

Educating the real estate and solar industries

Enabling ready access to rates and data

The report is available through the Solar Buyers Guide’s website at http://www.solarbuyers.guide/solar-panels-on-your-home-give-higher-value/