In addition to eliminating their electric bills, many homeowners have opted for solar panel installation in San Diego in the hopes of increasing the value of their home. It has been debated whether or not solar panels actually increase the value of a home, and it is difficult to measure due to the many factors that may affect the value of a home, including neighborhood and demographics. However, recent studies have found evidence that solar panels can, in fact, boost the selling price of your home.
Evidence Linking Solar Panels to Increased Home Value
A recent study conducted by the Lawrence Berkeley National Laboratory analyzed “a data set of approximately 72,000 California homes, 2,000 of which had PV systems installed at the time of sale.” In a two-page summary of the report, findings indicated:
“The research finds strong evidence that homes with PV systems in California have sold for a premium over comparable homes without PV systems.”
The summary further stated:
“The average sales price premiums also appear to be comparable to the investment that homeowners have made to install PV systems in California (after applicable state and federal incentives), which from 2001-2009 averaged approximately $5/watt…and homeowners with PV also benefit from electricity cost savings after PV system installation and prior to home sale.”
Analysis of Solar Panel Installation and Home Value in San Diego
Another study, conducted by the UC Center for Energy and Environmental Economics, analyzed a large sample of homes specifically in San Diego, to take a detailed look at the resale value of homes with solar panels compared to those without.
The study found that “solar panels add 3.3% to the sales price of home after controlling for observable characteristics and flexible neighborhood price trends…This corresponds to a predicted $16,235 increase in price for the average sale with solar panels installed.”
The study also examined prices in repeat sales, again finding positive results.
“…our average capitalization estimate of 3.6% applied to the average price at the first sale in the repeat pair of $558,100 implies an average additional $20,194 in the subsequent sales price due to the installation of solar panels. This value suggests that households that install panels recuperate more than their costs in subsequent sales…”
From these studies, it is clear that a San Diego solar power system can prove to be a solid investment for your home, in addition to saving thousands on your electric bill and helping out the environment.