No Trick of the Light: Solar Energy Has Entered Real Estate

When preparing to put a home on the market, real estate agents carefully account for upgraded spaces and custom features to establish the best list price possible. Common home renovations like new kitchens and finished basements can boost a home’s valuation and list price — but can you accurately quantify the resale value of green technologies, such as solar energy?

Recent research from Lawrence Berkeley National Laboratory, which was funded by the U.S. Department of Energy SunShot Initiative, reveals that customer-owned solar photovoltaic (PV) systems can provide similar benefits when homeowners decide to sell. But just as a bathroom update, kitchen renovation or even an in-ground pool installation doesn’t guarantee a dollar-for-dollar return when the home is sold, neither does a home’s green technology.

While buyers appreciate energy efficiency, it’s often farther down their wish list, coming after location, floor plan and amenities. The value is more apparent when a buyer is choosing between similar homes — and only one has solar panels. Green technology can then become the deciding factor. Many home shoppers will likely consider the PV feature to be important and even appealing, but not a deal-maker (or breaker).

The number of households with solar energy systems in the U.S. is expected to surpass 1 million this year. With a growing market for solar installations, you can reasonably expect to sell more solar homes in the coming years. As solar panels become more common on rooftops, real estate agents should learn how to appropriately value solar systems and the effect they’ll have on home values.

The Solar Training and Education for Professionals (STEP) funding program provides professionals in fields related to solar energy with the basic solar training they need to do their jobs. One project aims to educate residential real estate agents, appraisers and appraiser regulatory officials across the U.S. about solar energy systems through web-based continuing education classes. These new projects will help ensure that consumers encounter a confident and knowledgeable solar-trained workforce when they buy, sell or refinance their solar-powered home.