Are solar systems good for the value of your home?
Solar panels are good for the environment, but are solar systems good for the value of your home? Before we answer that question, let us discuss a scenario regarding your home.
Let us say you have a nice home, and you’re planning to sell it close to the same price when you bought it. I bet that there will be a heartbreak when the buyer will not take your offer. Because there are things that contribute in lowering the price of your property; inflation, repairs, not to mention that the new owner will pay tax for his property.
Home improvements increase property tax
Since we are looking forward to add value of our homes, we tend to make improvements like constructing patio, master suite addition, carport, bathroom remodel, etc. These things will add value to your home, but will also increase your property tax.
Considering the potential property tax increase, what is the best home improvement to consider? According to Solar Energy Property Tax Incentive*:
Certain types of construction activity, however, are excluded from assessment as new construction. These exclusions are authorized by constitutional amendment. Consequently, while these types of improvements may increase the value of the property, because of an exclusion, the additional value of these improvements is not assessable.
And construction of the solar system is excluded from property tax assessment. Correct! Solar will make your home value increase, but not the property tax.
In addition to considering solar, a study took place in 8 states from 1999-2013. It shows that homeowners are willing to pay $15,000 more for house with solar, that is 4.1% premium for a home worth $366,000. However, the premium percentage depends on the location. For example, there is a 5.4% increased value for homes with solar in New York, and 4.4% in San Francisco. There is also a term from that study that we call Green Cache. That is, homebuyers pay for more for larger solar systems.
What does it mean to you?
Solar system really does add a significant value to your home, on top of the money you’re saving from using solar! Since Credence is available in these Tax-exempt states, we can help you increase your property, and switch to Solar!
Credence is your trusted installation contractor for all energy needs in California, Florida, and Missouri. We can install your Solar for as little as zero down. Contact us today via phone or email, and start saving from electric bills, and saving the planet.
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** Solar power is 100% free from the property tax only in California, Missouri, Florida, and Colorado.