Solar panels are a great renewable energy source and a good option to reduce your monthly power costs. Though they require an initial investment, if you’re considering buying a solar panel, you could be asking do solar panels make my home more valuable. However, solar panels can boost your home’s value in the long run. This is how.
Cost of Solar Panels
About a million houses in Northern Ireland now have solar panels installed, which is a rising trend. However, the price of solar panels is lowering. According to official data from 2021, solar panels for the typical Northern Ireland household are priced a little under £6,000 (£5,940).
A 3.8kW solar PV system which can help a family of about three persons cost, on average, £7,900 in 2014. Since the cost of solar energy has decreased by 25%. If getting a home addition costs roughly the same as installing solar panels, you may get your cash back and more from solar.
Choosing what solar PV system will best meet your needs in terms of power output and property. Make an appointment for a free survey with a qualified PV installer to learn the price of your solar panel installation. They will be able to securely inspect your property with a trained person on their staff.
How Do Solar Panels Make My Home More Valuable?
The key reason solar panels can raise the value of your house is usually similar to why you had them placed in the first place, so this may surprise you. Lesser cost energy. Anyone wants to cut their energy costs. Energy efficiency has been a major factor for many people due to the necessity that properties offered for sale have an Energy Performance Certificate (EPC).
Solar panels boost the value of your home. You’ll get a higher EPC grade and raise the value of your property by installing solar panels. Also, they won’t have to pay for or deal with installation costs, so they can finally enjoy the perks immediately. This makes it seem like a no-brainer. True, but it isn’t really that straightforward.
What Factors Influence the Value Added Of Solar Panels?
While you can get a general idea from these easy calculations, a range of variables impacts the added value of solar panels. Among the most significant are the following:
- Costs Of Installing Solar
Locating a new system is another regional factor. Your home will be worth higher if a buyer can save cash by buying a house with a system fully installed. - System Age
Depreciation must be considered if your solar system is older. If you sell your property, older systems won’t add extra worth since there’s a higher probability that the buyer will have to repair things or change parts sooner. - System Repair Cost
Similar to system age, the price or ease of changing different pieces of your system has an effect on the overall extra value of the system. - Location
Electrical costs vary by area, and solar panels are more useful in areas with higher energy costs. Geographical factors can also affect how much sun you get and how solar power installations help society. - System Output
Bigger systems having higher power generation will give better- added value.
Can Solar Panels Lower Your Home’s Value?
Solar panels will likely reduce your property’s selling value despite the large expense you are making. How solar panels might devalue your property:
- Management
Some people don’t want the trouble of expected cleaning or maintenance tasks. - Additional Difficulties
The panels can make it more challenging and pricier for the potential owner to add an extra or retile the roof. - Unattractive
Solar panels don’t suit everybody. - Rental Homes
Solar panels could be a hassle for a buyer who won’t be residing. - Feed-in Tariffs
The new owner could have trouble obtaining a mortgage if this cannot be passed to them.
The age of your panels and the options you took while installing them will be key factors. A new owner needs to consider the price of changing or removing your panels if they’re getting close to their 20–25-year lifespan. It is crucial to who gets the Feed Tariff. Owners of solar panels are given this option to literally “sell” their unused solar energy to the grid.
Some homeowners consented to let installers keep this money to cut installation prices. They are leasing space on their roof to a solar energy installer in return for lower power bills. The amount the homeowner may save is also cut. This could make it harder to get a mortgage for real estate.
How Will Solar Panels Impact Your Property Taxes?
Your home’s property taxes will rise since adding a solar panel system boosts the value of your house. Some laws have been enacted to avoid charging homeowners for their purchase of solar panels.
Residential solar owners can avoid paying property and sales taxes in different regions. Owners can seek an exemption for the increased property value without losing it due to these solar property tax exemption rules. It’s crucial to remember that the exemption rate differs widely by region.
For instance, whilst some regions give a total exemption, others can only give it for a certain number of years. To enhance your higher property value, fully grasp your local policy.
How To Raise Your Home’s Value Using Solar
While solar panels still begin to lower your costs straight away, extra investments can aid you in boosting the value of your house’s power system. You can cut your reliance on the power grid much more, even entirely installing a solar battery, for instance.
An energy-conscious buyer who values freedom and savings on energy can place a higher price on your house if it has a solar panel system with a storage battery. Another trend becoming more popular with individuals who want to save their costs and carbon impact is using electric vehicles.
Smart EV charging stations which use solar energy to charge cars help homeowners make the most of their electric vehicles and solar panels. A smart solar-powered charging station is a big selling point for new home purchasers with electric vehicles.
Conclusion
Residential solar panel installation is a good investment. Do solar panels make my home more valuable? Your home’s worth would rise whether you upgrade it in anticipation of a future sale or decide to stay in it permanently. Payback periods are less of a problem due to this extra value. In a subsequent sale, you can repay your investment plus profit.
