Quantcast
Environmental News for a Healthier Planet and Life

How Solar Panels Can Boost Your Home's Value by Nearly $6,000

Business
How Solar Panels Can Boost Your Home's Value by Nearly $6,000

Plenty of additions can add to a home's market value, and a roof with solar panels is no exception.

The Lawrence Berkeley National Laboratory's (LBNL) Electricity Markets and Policy Group released a report with the numbers to prove it, too. According to LBNL, home values can increase by $5,911 for each kilowatt (kW) of solar energy generated by a rooftop system.

Most California homes can produce 2 to 5 KW, so, clearly, bigger is better when it comes to home premiums and energy production. The study also indicates that buyers are gravitating to solar homes with newer systems.

"The take-away here is the market is showing that [photovoltaic] PV is valued by home buyers," LBNL staff research associate Ben Hoen told the San Francisco Chronicle. "There could be a green cachet for the PV system that would be over and above the expected price."

Graphic credit: Lawrence Berkeley National Laboratory

The study looked at 1,894 California homes with solar roofs, compared with more than 70,000 non-solar homes sold in the state from 2000 to 2009.

The report found that the added value slides with each passing year. Premiums decrease by about 9 percent per year, while electricity generation drops by about 1 percent per year.

"They might be perceived as older technology, even if they're still producing electricity at the expected rate," Hoen said. "An individual home is going to have its own, individual premium for PV."

Still, adding a solar panel pays for itself in the way of energy savings and can be a nice complement to renovations and other factors to add to a home's value. That will become even more evident as more real estate appraisers figure out the best ways to assign value to solar systems.

"Valuing homes with green technologies of various kinds is becoming more common," he said. "It's not a process that happens overnight, but it is happening."

LBNL plans on updating the study soon and looking at other states, too. Prices have dropped dramatically since the final year of the data used for the study. In California alone, prices dropped from $10.60 per watt in 2009 to $5.67 per watt this year, according to the state's Go Solar website.

Nationwide, the average cost is $4.99 per watt and expected to decrease each year.

Visit EcoWatch’s RENEWABLES page for more related news on this topic.

Hopi blue corn is being affected by climate change. Abrahami / Wikimedia Commons / CC by 3.0

Climate change is making ancient Hopi farming nearly impossible, threatening not just the Tribe's staple food source, but a pillar of its culture and religion, the Arizona Republic reports.

Read More Show Less

EcoWatch Daily Newsletter

Pollution on the Ganges River. Kaushik Ghosh / Moment Open / Getty Images

The most polluted river in the world continues to be exploited through fishing practices that threaten endangered wildlife, new research shows.

Read More Show Less

Trending

Oil spills, such as the one in Mauritius in August 2020, could soon be among the ecological crimes considered ecocide. - / AFP / Getty Images

By Kenny Stancil

An expert panel of top international and environmental lawyers have begun working this month on a legal definition of "ecocide" with the goal of making mass ecological damage an enforceable international crime on par with war crimes, crimes against humanity, and genocide.

Read More Show Less
Polar bears are seen in the Arctic National Wildlife Refuge in Alaska. Alan D. Wilson / Wikimedia Commons / CC by 3.0

After ongoing pressure from environmental groups and Indigenous communities, Bank of America has said it will not finance any oil and gas exploration in the Arctic, making it the last major U.S. financial institution to do so.

Read More Show Less
Map shows tracks and strength of Atlantic tropical cyclones in 2020. Blues are tropical depressions and tropical storms; yellow through red show hurricanes, darker shades meaning stronger ones. Master0Garfield / Wikimedia Commons

By Astrid Caldas

As we reach the official end of hurricane season, 2020 will be one for the record books. Looking back at these long, surprising, sometimes downright crazy past six months (seven if you count when the first named storms actually started forming), there are many noteworthy statistics and patterns that drive home the significance of this hurricane season, and the ways climate change may have contributed to it.

Read More Show Less