Homeowners are always looking for ways to improve their homes and add value. Real estate experts estimate a kitchen remodel could increase the value of a home by $40,000 dollars. A bathroom can add $20,000 in value and wood floors $12,000. But the real value of remodels depends on your location and many other factors.
Studies ranging from California to Connecticut, Florida, Massachusetts, North Carolina, and New York found that homes with solar panels sell faster and for more money. While these studies give a glimpse of solar’s potential and value, it doesn’t necessarily mean solar works everywhere and for everyone. Homeowners understand their own situation better than anyone and factoring their situation in with an understanding of how solar works will help homeowners know if solar is right for them.
Pay Upfront for Solar
Some homeowners can afford to pay for a solar PV system out of pocket. Paying for a system upfront will yield greater savings in the long term, and the panels will produce all the electricity the homeowner needs. When the panels aren’t producing power, homes use energy credits collected through net metering to borrow power from the grid. With no power bill, the homeowner’s savings on electricity will eventually recover all the money they spent on solar and installation. Any money saved after that is pure profit for the homeowner. If the homeowner decides to sell their home, then they are marketing a home with no power bill. The homeowner has added value to his/her home and it will sell for more money.
Get Solar on Your Home for $0 Down and Save Immediately
The same day my wife discovered she was pregnant with our first child our car with 200,000+ miles broke down. The repairs weren’t cheap, and we were poor college students. What should have been a happy moment was replaced with stress and lots and lots of tears. My wife and I decided that we should get a new car to invest in our future. After long hours of research and debate, we bought a Toyota Camry. We got the car for $0 down, and took out a loan and made set monthly payments until it was paid off.
Not all cars come with a $0 down offer, but homeowners with good credit will qualify to get solar for $0 down. Similar to car payments, homeowners will make set payments for solar. The panels will produce the power the home needs and eliminate the electricity bill. The monthly cost of the panels is a flat rate and won’t change over time. It will be lower than what the homeowner is paying the utility company at the time. Inflation and government regulations force power companies to raise rates anywhere from 4-7% each year. Despite increasing electricity bills, the homeowner’s flat rate won’t change and his/her savings will only increase with time. Homeowners also have the option to pay a higher rate to pay off the cost of the solar PV system faster.
So, how does this add value to your home?
The answer depends. Much like selling a car with an outstanding loan, if a homeowner with solar wants to sell their home but haven’t paid it off, the new homeowner would have to agree to have the remaining balance of the loan passed to them. It’s between the homeowner and the potential buyer to decide the worth of how much the homeowner has already paid off. You might be thinking, “solar might not be worth it if I’m moving in the next couple of years.” But don’t stop reading yet! Find out why it’s worth it.
Government Incentives Make Solar Worthwhile Even if You’re Going to Move in the Future
When people purchase their first home they usually refer to it as “our first home” because they play on moving in the future to live in a dream home or accommodate to a growing family. The Federal Government wants people to go solar because it has a positive impact on the environment. The government is offering a 30% tax credit. That means 30% of the cost of the panels will be recouped in the form of tax credits. If your system costs $25,000 then you’ll save $7,500 on taxes. If your taxes don’t amount to $7,500, then the remaining balance can be carried over from year to year.
(Learn more about the 30% tax credit–>here)
Let’s say you decide to sell your home. The new homeowner won’t see a dime of those tax credits. Even better, you can get solar for $0 down and receive the tax credits immediately. This 30% incentive will only last through 2019 and will begin declining each year, so the sooner you go solar the better.