Everyone’s anxious about the economy; the housing market looks particularly bleak. And even after the immediate troubles are gone, it’ll take awhile for everything to get back on track.
But if you know you’re going to move before the housing market rebounds fully, this could be a great time to put solar on your house.
Check out our report on Solar Home Value to learn more.
According to the U.S. DOE’s office of Energy Efficiency & Renewable Energy, a home with solar will sell twice as fast as a home without solar – even in depressed markets1.
This is because of the marketing value home solar has. Because the demand for solar homes is higher than the supply, you’ll sell your home faster. Doesn’t that sound nice?
Lennar Homes and their partner SunPower saw this happen in early 2007:
“For eight [non-solar] communities in the Whitney Ranch residential development in Rocklin, CA, an average of 1.9 homes has sold each month since 2006. A ninth [solar] community, Grupe Homes’ Carsten Crossings, stands out with…an average of 4.6 homes sold per month over the same time period.” 2
A solar home’s value goes up faster too. According to Shea Homes, the value of California homes with solar went up 55% while non-solar homes went up 45% in value during the same time period3.
All 257 homes in one Clarum Homes development sold within a year of being put on the market – 2 years faster than planned. Plus, homes originally priced at $379,000-$499,000 were selling for as much as $600,000.
Get an extra $100,000-$200,000 for your home? Sounds pretty good to me.
In other words, the increase in your home’s resale value can mean that you immediately recoup you’re the cost of going solar!
Both the faster increase in a solar home’s value and the increase in its resale price are a result of the value the solar electricity will bring to the homeowner in the future. In other words, minus any maintenance and repair costs, solar adds value to a home because it means the homeowner will save more and more over time on electricity.
There’s a commonly quoted study by ICF Consulting that puts some numbers to this. The study explains that saving $1 a year on energy costs adds $20 to your home’s value4. In other words, saving $1,000 per year increases your home’s value by $20,000.
Even if you’re not moving, solar is one of the smartest things you can do with your money in the current economy. Stay tuned and we’ll tell you more…
1. http://www1.eere.energy.gov/solar/pdfs/43076.pdf
2. http://investors.sunpowercorp.com/releasedetail.cfm?ReleaseID=246299
3. http://www1.eere.energy.gov/solar/pdfs/43076.pdf
4. http://www.ongrid.net/AppraisalJournalPVValue10.98.pdf
Are you in California and interested in solar for your home? Call us at 1-855-4SUNRUN or visit our website to learn more.
{ 8 comments… read them below or add one }
it’s ano brainer really. if you have 2 identical houses but one has the ability to produce free hot water or electricity for you, I think you’d choose that one
An excellent, succinct way of putting it, Total Solar Energy! Thanks for stopping by.
Great work! I also have my own blog I just find it hard to write quality content like this.
I guess I really don’t have the time.
This is a neat blog. Keep up the great work. Anyone ever done House Flipping?
I found your blog via Google while searching for policies france of water pollution, thank you for posting nd Home Value | Sweet Solar Home!
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It is definitely no surprise that Solar Power for Homes is a great was to increase the value of your property. While many people desire to be more environmentally friendly they are apprehensive to take the plunge but are far more receptive to purchasing a home that has already been outfitted with solar panels especially in light of the current economy, as you mentioned. I work with Sharp and they offer free consultations and help people through the process of switching to solar energy.