Zillow Advice: Home Improvement - How much would solar panels increase a home's property value? http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ Zillow Advice | Zillow Real Estate UH, GUYS?The question is&nbsp;not ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ <p>UH, GUYS?<br/><br/>The question is&nbsp;not the cost of solar panels, the question is How much wil the&nbsp;home value increase by installing solar panels. Does anybody know??<br/></p> Sat, 28 Sep 2013 22:13:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2013-09-28T22:13:00Z After installing the Solar ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ After installing the Solar Panels, make sure you update your insurance policy, look for the section on Coverage A, Dwelling and Personal Property.&nbsp;<br/> Sun, 08 Jul 2012 23:50:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2012-07-08T23:50:00Z At today's panel costs, installation ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ At today's panel costs, installation is more than half the cost of a typical residential site. And, you'd have to pay for the removal and transport of the panels and racks, seal the prior roof openings,&nbsp;and replace the roofing or solar equipment damaged in the process. You would likely save some money, but the difference, given the reduced or no warranty on the equipment and its age and older technology, may not be worth the trouble.<br/><br/>At the end of June (2012) my wife's cousin signed a contract for a solar installation with premium panels from SunPower. The marginal price for each additional panel was $250 going from a 28 to a 32 panel system--or what should amount to $8000 for just the panels on an entire system cost of about $35,000. Sun, 08 Jul 2012 23:30:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2012-07-08T23:30:00Z Thank you! http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ Thank you! Sun, 08 Jul 2012 22:48:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2012-07-08T22:48:00Z I cannot tell you exactly ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ I cannot tell you exactly how much it would cost you, since i live in Romania :). But you could ask a local installer what would be the cost to uninstall the equipment and reinstall it at another location. Sun, 08 Jul 2012 21:37:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2012-07-08T21:37:00Z My husband asked me that ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ My husband asked me that the other day. Can we have our panels removed and have them installed on another property we purchase? If so, what would be the approximate cost for this?<br/><br/>Thanks Sun, 08 Jul 2012 21:18:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2012-07-08T21:18:00Z You could always take away ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ You could always take away the solar system from that house if the buyer would not agree on paying something more than the value of the house. Why give it for free when you can take it with you?<br/><em>[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]</em> Sun, 08 Jul 2012 20:06:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2012-07-08T20:06:00Z I like the idea of being ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ I like the idea of being able to say to the purchaser of my home that they will not pay more than $12 per month (vs. previous $500-$600 pm) before solar. Sat, 01 Oct 2011 00:04:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2011-10-01T00:04:00Z This is a great topic. &nbsp;Thank ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ This is a great topic. &nbsp;Thank you, everyone, for your comments as it makes for a great learning opportunity.<br/><br/>I live in New Jersey and work for a Solar PV company. &nbsp;We are hearing this question frequently, and it will be great to have some hard numbers available as more homes with Solar are sold.<br/><br/>As for the Math behind Solar in NJ, the State Rebate (for Sept 1, 2010) was very recently announced. &nbsp;It is now $.75 / watt up to 7.5 kW for a maximum rebate of $5,625. &nbsp;The rebate is typically assigned to the installer. &nbsp;Then there is the Federal 30% tax credit available.<br/><br/>Once the system is installed and is energized then it begins producing SRECs (Solar Renewable Energy Certificates). &nbsp;For each 1,000 kWh the system generates, the system owner is given 1 SREC. &nbsp;These are for sale in a SREC marketplace. &nbsp;Ultimately, utility companies will purchase these SRECs and retire them to show the Board of Public Utilities that they are achieving their Renewable Portfolio Standard (RPS).<br/><br/>The current cost of the SRECs is available here: &nbsp;<u><a href="http://markets.flettexchange.com/njsrec/" rel="nofollow">http://markets.flettexchange.com/njsrec/</a></u><br/><br/>By applying both the electricity savings and the SREC income toward the system cost, the ROI is typically between 4.5 - 6 years. &nbsp;The SREC income will continue until year 15. &nbsp;And, the panels have an output warranty of 25 years.<br/><br/>At this point, I think, the amount of &nbsp;increase in a home's value is not fully documented based on these newer incentives. &nbsp;Because of NJ's high electricity costs ($.19 / kWh), larger home sizes and a desire to offset as much of the electrical usage as possible, many of our installs are 10 kW, which is where the Residential Rebate had maxed.&nbsp;<br/><br/>A 10 kW system will offset about $1,900 - $ 2,800 of electricity costs in a year (based on shading, slope and azimuth). &nbsp;Using the "each $1 saved in electricity costs increases a homes value by $20" guideline, then we could be looking at a home's value increase of $40,000+.<br/><br/>A home buyer who knows that his / her monthly electricity costs will average in the low double digits will likely be willing to pay more for a home with Solar. &nbsp;And, the panels will also produce SREC income for the system owner. &nbsp;I think the SREC program can allow for some creative selling opportunities as there will be income available to be assigned to the seller if the buyer does not want to pay for an increase in home value. &nbsp;In NJ, the panel installation is supposed to be exempt of property tax increase.<br/><br/>Along with the SREC programs some states are using, I think we'll also be seeing more Feed In Tariffs (FIT) which may show similar or different valuations added to a home's value. Mon, 28 Jun 2010 10:52:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2010-06-28T10:52:00Z I agree with SDhomeownr that ... http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ I agree with SDhomeownr that one certainly wants to conserve energy first. However, even after saving energy, many homes use enough electricity to make a solar-energy system cost effective.<br/><br/>SDhomeownr's payback math is incomplete. The electricity cost&nbsp;from the solar-energy system is fixed by the purchase price and never goes up&nbsp;in price, while the avoided cost of electricity not purchased from the utility does go up, at about&nbsp;5-7% a year on average (for PG&amp;E). At 5% avoided energy-cost increases, the "payback" period for a cash purchase is about 11 years since the return each year is increasing. But this is&nbsp;not&nbsp;a useful&nbsp;evaluation since a solar-energy system is an income-producing&nbsp;asset (investment)&nbsp;and not an expense.<br/><br/>SDhomeownr also seems to assume that the solar-energy system adds no value to the home, which is incorrect. At current pricing (in California), solar-energy systems add at least their cost to the value of the home (see prior links). The service life on panels is 30-50 years and the service life on microinverters is greater than 20 years. When the average person sells their home in well less than that time, they will recoup their entire $11,000 investment&nbsp;and have had the benefit of a 10%&nbsp;before tax initial&nbsp;risk free return that grew at 5% a year (to use the example below). But this is still lacking, because this is a&nbsp;RISK-FREE return. One would need to select a much riskier investment&nbsp;for a risk-adjusted comparison and still not get assurance of a rate of return.<br/><br/>SDhomeownr's financing math is also not appropriate. He chooses to finance and pay off the&nbsp;system over 10 years, yet the&nbsp;service life of the system is several decades. A more appropriate time is 30 years (if a HE <a href="http://www.zillow.com/mortgage/">loan</a>, roll it forward at the end&nbsp;of 10 or 15 years&nbsp;into another loan). At 30 years with a 7.5% loan, using the example, the average net cash per month the first year is $52.95, a few dollars less than the initial year's energy savings of $60 a month. HELOC rates are now&nbsp;around 5.5%, which makes for a net cash of $44.92/month, or over&nbsp;a $15 cash savings per month. HELOC&nbsp; rates&nbsp;will assuredly rise sometime, but may be less than 7.5% for a few&nbsp;years.<br/><br/>Note that these numbers are for an already "Green" house, so our energy usage is very low. Many people simply can't change their habits to be Green, and since their cost for each additional KWh is higher, their savings are greater with the same sized system. Mon, 01 Mar 2010 07:42:00 GMT http://www.zillow.com/advice-thread/How-much-would-solar-panels-increase-a-home%27s-property-value/244259/ 2010-03-01T07:42:00Z