How Much does Solar Power Add to your homes value?

Question

I asked this question but would to add the following details.

I am getting substantial subsidies. so the cost is very very low.

I am interested in the resale added value or how to research this information.

Answer 1

I would not buy a house with solar power if mains power was available. Solar energy is too expensive to implace and maintain and would not be sufficient to run most domestic applications for extended periods of time. You would also need a backup generator which is even more costly to run as well as having the cost of a remote building to house the batteries and generator. I have had experience in this in outback Australian cattle stations where there is no mains power available.

You may get a rebate when purchasing these items, but the long term maintenance costs are negated against your rebate.

The only thing solar I would consider a slight incentive would be solar hot water

Answer 2

Ask the real estate agents in your area. For some people, having solar electric panels already installed would be a plus. For others, however, especially if they know little to nothing about them, and are not willing to learn, then they would be a detraction for you. It will really depend on the buyer as to whether the panels are an asset, or a detraction. For myself, I would welcome them.

Answer 3

Have you heard of Andy Black?  He does some great financial number crunching for solar electric systems and specifically how much value you will add to your home.

www.ongrid.net

I would just add that it really depends on your location, real estate market, and amount of sun versus the cost of electricity.

Answer 4

It depends.  Outfitting a house for solar costs upwards $50,000 and the economics are so bad that people have to say it "increases your home value", and you need heavy subsidies so it doesn't look completely ridiculous.

Just how much it "increases your home value" suddenly gets nebulous as a web search quickly reveals.

Most people go solar on general principle, and a solar home might appeal to a buyer in the same frame of mind, but otherwise, don't expect it to be a good investment.

According to Money magazine, the best renovation projects are:

"... updating your kitchen, renovating your bathroom and making outdoor space more usable."

A home's value is based on location and then within the same sub-division, square footage.  Hence a home in Cary, North Carolina that runs $300,000 can cost $1.3 million in Calilfornia.

Someone buying a $1.3 million home in California might not worry about a $50,000 solar system thrown in, but in Cary, NC it would definitely turn away some buyers if it made a $200,000 home suddenly cost $250,000.

Quite frankly, I would avoid a solar home because of the maintenance and attention it would require.  When you buy utility power, anything bad that happens up to your meter, is the utility's problem.

With solar you need to wash the solar panels, take care of batteries that don't last forever, and generally have to pay a heck of a lot more attention to your home power supply than with utility power.

I would much rather waste time spewing on Yahoo than have to worry day to day about my home power supply.

Since I gather you have already installed solar, just take satisfaction in becoming energy efficient and don't expect it to have much effect on your home's value one way or the other.