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.

Ningaloo Reef near Exmouth on April 2, 2012 in Western Australia. James D. Morgan / Getty Images News

By Dana M Bergstrom, Euan Ritchie, Lesley Hughes and Michael Depledge

In 1992, 1,700 scientists warned that human beings and the natural world were "on a collision course." Seventeen years later, scientists described planetary boundaries within which humans and other life could have a "safe space to operate." These are environmental thresholds, such as the amount of carbon dioxide in the atmosphere and changes in land use.

Read More Show Less

EcoWatch Daily Newsletter

A 3-hour special film by EarthxTV calls for protection of the Amazon and its indigenous populations. EarthxTV.org

To save the planet, we must save the Amazon rainforest. To save the rainforest, we must save its indigenous peoples. And to do that, we must demarcate their land.

Read More Show Less

Trending

UN Secretary General Antonio Guterres delivers a video speech at the high-level meeting of the 46th session of the United Nations Human Rights Council UNHRC in Geneva, Switzerland on Feb. 22, 2021. Xinhua / Zhang Cheng via Getty Images

By Anke Rasper

"Today's interim report from the UNFCCC is a red alert for our planet," said UN Secretary General Antonio Guterres.

The report, released Friday, looks at the national climate efforts of 75 states that have already submitted their updated "nationally determined contributions," or NDCs. The countries included in the report are responsible for about 30% of the world's global greenhouse gas emissions.

Read More Show Less
New Delhi's smog is particularly thick, increasing the risk of vehicle accidents. SAJJAD HUSSAIN / AFP via Getty Images

India's New Delhi has been called the "world air pollution capital" for its high concentrations of particulate matter that make it harder for its residents to breathe and see. But one thing has puzzled scientists, according to The Guardian. Why does New Delhi see more blinding smogs than other polluted Asian cities, such as Beijing?

Read More Show Less
A bridge over the Delaware river connects New Hope, Pennsylvania with Lambertville, New Jersey. Richard T. Nowitz / Getty Images

In a historic move, the Delaware River Basin Commission (DRBC) voted Thursday to ban hydraulic fracking in the region. The ban was supported by all four basin states — New Jersey, Delaware, Pennsylvania and New York — putting a permanent end to hydraulic fracking for natural gas along the 13,539-square-mile basin, The Philadelphia Inquirer reported.

Read More Show Less