Most people already know that solar energy is good for the environment and can help home and business owners save on their electricity bill. New research from Lawrence Berkeley Laboratory recently confirmed yet another benefit of solar – It raises the real estate value of the property that it’s on.
The fact that solar installations raise property values is something that has been noted in the housing market in the last several years. This new research confirms that the added-value aspect of solar is a continuing trend. Simply put, a home or property with a solar installation is extremely likely to be appraised at a higher value than those without solar. Interestingly, the increased appraisal value was true for homes with both customer-owned and leased solar systems. Regardless of the financing, solar is seen as perk, or even a selling point for a home.
The study was done based on comparisons between property appraisals of homes with and without solar in Oregon, California, North Carolina, Florida, Pennsylvania and Maryland. The results indicated that the appraised value of homes with solar was generally three to six percent higher than the appraisal of non-solar homes, which translated into a price boost of $10,000-$22,000, dependent upon the region.
It was noted that this research was a bit limited – only 43 pairs of homes had enough shared variables to qualify for valid comparison in the study – however, the fact that this new data continues to support previous findings is encouraging. There are always many variables that can affect property appraisal values in various markets, but solar installations are certainly proving to have a positive effect across the board.
Raising property values is yet another way that solar is good for our communities. Over the past several years, much has been said about solar’s ability to create local jobs and spark local economic development, in addition to providing emission- free, clean and affordable energy. As the cost of solar continues to drop, and with the solar investment tax credits officially extended for several years, we are optimistic that this ever-growing laundry list of solar benefits will continue to encourage people across the Southeast region to go solar.