If you pay $20,0000 for a solar system, will your house price go up by $20,000 at the time of sale? Three separate studies say “yes.”
Many homeowners considering solar want to know how solar can change the price of their home at the time of a resale. Does the house price go up? Does it go up as much as the cost of the solar system? Three recent studies all come to the same conclusion: Yes. At the time of the sale, the value of the house is increased by the addition of the solar system.
The studies all focus on homes in California, where nearly half of the U.S.’s residential solar systems have been installed. They track data on thousands of home values with PV systems from 1997 to 2009. And while the data set may seem “ancient,” it includes a booming housing market and a bust (2007 – 2009). It also includes communities with surging house prices (San Diego) and those with real slumps (Sacramento.) So the conclusions are drawn from a very wide range of conditions.
And the data says that you can expect to get the cost of your system back when selling your home.
One more thing: As late as 2009, the decision to buy solar was often not based on economics. It was more often based on a desire for energy independence or lowered carbon emissions.
Fast forward to 2015, when most families sign-up for a long-term solar contract to save money. None of the studies examined homes that had locked-in energy savings for years to come.
It is logical, however, that this benefit will only serve to increase a home’s value — even when the system is leased or operated by a third-party.
To learn more, read this summary.