Homes with Solar Panels Sell Faster for More Money

Solar homes sell faster for more money

When you consider the cost of solar panels for your home, there are some values that don’t automatically come to mind.  Sure, you’ll save on your electricity bills and reduce your carbon footprint, but did you know that homes with solar panels sell faster and for more money?

That’s right.  In a 1998 study by ICF Consulting (“Evidence of Rational Market Valuations for Home Energy Efficiency,” www.icfi.com/Markets/Community_Development/doc_files/apj1098.pdf) it was determined that for every $1 you save on electricity by installing residential solar panels, your property value increases by nearly $21.  Score a $500 annual saving, and you can expect your home to be worth over $10,000 more.

In addition to increased value, a study by the National Renewable Energy Lab (NREL) also confirms that homes with solar power systems generally sell 20% faster and for 17% more, based on a comparison with equivalent non-solar homes across several California subdivisions.

Think that it sounds too good to be true?

The NREL study that determined homes with solar panels sell faster for more money analyzed information from a San Diego, California real estate developer.

In a new residential subdivision, half of the homes were built with PV solar panels and solar hot water systems, while the other half didn’t include the solar features.  The 257 homes with residential solar panels sold within a year of going on the market – about two years faster than expected.  Perhaps even more impressive is the fact that the solar homes sold for $100,000-$200,000 more than their listing price (as much a $600,000 for houses were priced in the $380,000 to $500,000 range).

Check out the NREL study (PDF) for more information.