In a city like Las Vegas, no one enjoys receiving the summer and winter electricity bills. The bills for these months tend to be considerably higher than spring and fall because you’re likely running your home’s air conditioner and heater a lot more. If you’re interested in reducing your electric bills more substantially over time, installing solar on your home might make sense. However, in addition to reducing your monthly power bills, can solar panels increase the value of your home?
Do Solar Panels Help or Hurt Home Resale Value?
Many people who are thinking about installing solar panels will want to know if they will improve their home’s resale value. The answer depends on when are you selling and how much do you expect to gain in reduced energy costs versus how much you spent on the system.
The increase in property value very much depends on where you are located and how big your installation is. Studies by experts including the US Department of Energy estimate a home’s resale value may increase by up to $4 per solar watt you install on your home. By doing the math you can see that a 3,000-watt installation could increase your home’s value by $12,000 and on up from there.
For a larger home with a larger installation, your home value could increase by more than $20,000. If you live in an active solar region, and if you lived in the home for five or 10 years before selling, your installation cost would be easily covered, leaving you with nothing but profit on the increased resale value.
Even saving $30 on your power bill each month not only puts that money back into your pocket, but may also increase your home resale value by thousands of dollars. Studies also show that solar installations have a higher return on investment than other home remodeling projects, such as redoing your bathroom or kitchen, for the reasons noted here. Studies also show that solar panels can help you sell your home up to 50% faster.
Does Solar Increase Home Value in Nevada?
Let’s say you live in Nevada, where the sun shines brightly more than 300 days per year. If you installed solar today and lived in your home for the estimated 25-year lifespan of your PV system, while also taking into account constantly increasing utility rates, you will continue to accrue savings over those years (which of course begin on the first day of use). Over time the savings will not only cover your installation cost, but also continue putting more money back into your pocket once that cost is covered.
In terms of resale value, with an installation that takes full advantage of the sun’s power, your investment could pay more than a 200% return on investment. Try getting that from a remodeled bathroom!
But Will It Be Enough to Cover Installation Cost?
If you’re purchasing homes to flip them, you won’t be able to realize the long-term benefits of solar. However, this could be offset by the faster sale time of the home you’re trying to flip, which could still make it a worthwhile investment,
Solar panels can pay for themselves over time, but it will take many years for homeowners to realize a full monetary return on their investment. However, even if homeowners don’t intend to stay in their home for more than several years, solar panels could still be a good investment given how easy they make it to sell a home. Before you make a decision on whether or not to install solar panels, carefully weigh your options to decide if it’s the right move for you. Be sure to work with licensed professionals who have years of experience installing solar panels should you decide to buy some for your home.