BOOST HOME VALUE AND SELLING POTENTIAL WITH SOLAR ENERGY SYSTEMS IN MICHIGAN
For investments to be worthwhile, they must return more than they cost. A strong case for solar energy is that it ends up paying for itself. All upfront costs are eventually offset through lowered or eliminated energy bills. Over the life of the system, customers can make 2-3 times their initial investment.
That sounds smart, but many homeowners are still hesitant to move forward because they fear they won’t stay in the house long enough to realize the payoff. However, there is good news: installing a grid-tied solar energy system will boost your property value, increasing your selling potential. Even if you move before fully breaking even on your installation, the extra money from the sale can more than cover the initial cost.
Going by the Numbers: Increase of Up to 4%
According to Zillow, homes with a solar power system sell for up to 4.1% higher than comparable homes without a solar system. Another study analyzing over 22,000 home sales across six states found that photovoltaic (PV) homes sold for an average of more than $14,000, or 3.74% more than homes without PV systems.
Homeowners can reasonably expect to recoup their investment in the system installation when they are ready to sell, even if they move within a year or two. Additional benefits include tax incentives and reduced energy bills in the meantime.
Some states don’t factor a PV system into property value, meaning property taxes may not increase. Homeowners should check local regulations for specific rules in their area.
Two Considerations for Solar Power and Home Value
Installing a solar system increases your home’s value, but there are important considerations to keep in mind:
Keep Your System Small
While PV homes sell at a premium, the premium does not scale proportionally with system size or power output. More powerful systems do not drive prices up in line with installation costs. Homeowners should consider installing a moderate system that can feed excess energy back to the grid during high-usage periods, such as hot Michigan summer days when air conditioning is essential.
Newer Systems Get You More
As with most technology, newer solar systems add more value to your home. As a system ages, it depreciates and may require replacement parts, bringing its resale value down closer to the warranty cutoff. Investing in a newer system can maximize resale potential.
Michigan Solar Solutions: Trusted Solar Installer for Your Home
Michigan Solar Solutions has been serving the lower peninsula of Michigan since 2007 as a commercial and residential solar installer and licensed electrical contractor. With thousands of panels installed and a growing list of satisfied customers, our team helps Michigan homeowners increase property value, save on energy costs, and transition to clean, renewable power. Learn more about our services and read customer reviews on Guild Quality.