do solar panels increase home value

Do Solar Panels Increase Home Value in Texas?

Many real estate experts and housing developers in Texas will agree that solar-powered homes often have an edge in the market.

Texans are increasingly drawn to energy-efficient properties, and they’re willing to invest in them for the promise of lower monthly utility bills. While scientists widely agree on the environmental benefits of solar power, many Texas homeowners are curious: Will installing solar panels benefit my finances and boost my home’s value?

The typical residential solar energy system in Texas can generate power for over 25 years, leading to substantial long-term savings. But how does this impact the value of your home? In this article, we’ll analyze verified data to explore the effects of installing solar panels on your home’s worth, as well as the various factors that influence this valuation.

How Much Do Solar Panels Increase my Home Value?

Several studies have investigated the boost in property value attributed to the installation of solar panels:

According to a 2019 Zillow study, homes equipped with solar panels fetched an average of 4.1% more in sales compared to similar homes lacking solar power. This uptick translates to a $9,274 rise in the sale price for the median-valued home in the United States.

  • According to a study by The Appraisal Journal, funded by the Department of Housing and Urban Development (HUD) and the US Environmental Protection Agency (EPA), and noted by the National Renewable Energy Laboratory (NREL), solar panels can increase home value by $10 to $25 for every $1 reduction in annual energy bills. This research dates back to 1999, showing that the trend of solar panels boosting home values is not a recent development.
  • According to data from Rocket Homes, homes with solar power spend 13.3% less time on the market and are 24.7% more likely to sell for more than the asking price compared to homes without solar. This study indicates that having solar panels is attractive to buyers and can make homes sell faster.
  • Many homeowners think that solar energy increases the value of their homes. About 40.7% believe it adds somewhat to the home’s value, while 17% think it adds substantially. Interestingly, this belief persists regardless of whether homeowners already have solar panels. While those with solar are more likely to think it boosts home value, a majority (54%) of homeowners without solar also share this belief. Furthermore, even among non-solar homeowners who aren’t considering getting it in the future, 33.9% still believe that solar increases a home’s value according to this study from Rocket Homes.

 

These studies all showcase that adding solar panels to your house not only increase property value on paper, but also makes your home more appealing to future homebuyers.

How do Solar Panels increase Home Value in Texas?

When you install solar panels here in Texas, you are locking in a cheaper electricity rate than what retail providers offer. Overtime, these savings from powering your home with solar panels compound and quickly put more money back in your pocket. The same goes for whomever is looking to purchase your home. In fact, the average solar panel system in Texas saves homeowners over $90,000 in 25 years. Other ways your solar panels can add value to your home are:

  • Reduced Energy Cost.
  • Increasing Energy Independence.
  • Off-Grid Power with Solar Batteries.
  • Fixed Energy Cost to avoid inflating retail energy rates.
  • Reducing Carbon Footprint.

 

How do solar panels add value to your home?

Let’s dig a little deeper on your question “Do solar panels add value to your home”, by taking a deeper dive into 4 Factors.

  • Energy Bill Savings Potential
  • Solar Panel Installation Cost
  • Environmental Impact
  • Battery Backup Power

 

Energy Bill Savings Potential:

Homeowners can tap into solar energy to cut down on their monthly electricity bills by using the power generated from their solar panels.

Generally, the more savings solar offers, the greater the value it adds to your home.

The average Defined Solar customer locks in energy rates from $0.09/kWh – $0.12/kWh, depending on factors such as sun exposure, panel placement, and energy output.

How much you save depends on whether you buy or lease solar panels, the electricity rates in your area, and how much energy your family uses versus what the solar panels produce.

Additionally, many homeowners can take advantage of financial incentives and programs that encourage renewable solar energy, such as:

do solar panels add value to your home

Solar Panel Installation Cost:

Many Texas homeowners consider installing a solar energy system on their homes, but they worry about the upfront costs, regulations, and time involved.

That’s why homes that already have a solar system installed might catch the eye of buyers who want solar but are hesitant about the installation expenses – even if these homes have a higher initial price tag.

It’s like a blend of location and potential savings. If you reside in a region where home prices are increasing, electricity prices are high, and the sun shines consistently, installing a solar panel array can cut down your monthly electricity bills and boost your home’s value when it’s time to sell.

Environmental Impact:

Numerous Texas homeowners favor solar-powered homes that align with their environmental principles, aiming to decrease carbon dioxide emissions and other harmful greenhouse gases.

Opting for renewable energy to fuel your home not only diminishes your carbon footprint but also contributes to combating climate change. For many, investing in a home that supports eco-friendly practices is worth the extra cost, as it allows them to make a positive impact on the planet and the environment.

Battery Backup Power:

In Texas, a house equipped with solar panels and battery backup storage holds greater value than one without for several reasons.

Firstly, the energy grid in Texas is prone to frequent failures, particularly during extreme weather events such as hurricanes and storms. These disruptions can lead to prolonged power outages, causing inconvenience and discomfort for homeowners. In such situations, homes with battery backup storage systems offer a reliable source of electricity, ensuring uninterrupted power supply and peace of mind for residents.

Additionally, Texas experiences abundant sunshine throughout the year, making solar energy a dependable alternative to traditional grid electricity.

By harnessing solar power, homeowners can reduce their dependence on the unreliable energy grid, lower their monthly utility bills, and enhance the resilience of their homes.

Moreover, with the growing emphasis on sustainability and environmental consciousness, properties with solar panels and battery backup storage are increasingly sought after in the Texas real estate market, commanding higher prices and offering long-term value to homeowners.

See How Defined Solar Can Help You Increase The Value of Your Home with Solar Panels.

While data demonstrates that solar panels can boost your home’s value, it’s crucial to collaborate with a reliable solar installation company that can detail your expenses and potential savings to ensure a favorable return on investment.

As a trusted leader in solar installation and maintenance, Defined Solar assists homeowners in maximizing their energy savings and control through comprehensive solutions that reduce reliance on the electrical grid. We believe clean energy should be accessible to all and work alongside local solar experts in every community we serve to make this a reality.

Our solar services encompass more than just design and installation; we also provide maintenance, repair, cleaning, inverter and optimizer replacement, and ongoing performance monitoring.

With a commitment to delivering top-notch solar products and exceptional customer service, we make it simple for you to enhance your long-term savings with confidence and peace of mind.

If you’re considering installing solar panels to enhance your home’s value, start today with our complimentary solar quote. Then, reach out to us for further information. Based on your home’s specifics and your future plans, we can help you assess whether solar is the right choice for you.


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