Does Solar Add Value To Your Home?
Yes, No, Maybe
My favorite answer. Frustrating at times but it is true.
Let’s dig down…
Leasing Solar- No
If you are leasing a solar system you don’t own it so it is not adding value to the home. Even if the solar lease has been pre-paid. The savings you may see on utilities is a bonus to the resident. But the solar panels when leased do not add value.
Purchased Solar – Yes and Maybe
If you own the solar, it does add value to the home. You own it and it conveys with the property. YEAH!
If you purchase Solar and pay the solar off up front, most definitely the solar adds value to your home. If you paid $30,000 for your solar, don’t expect to get $30,000 back in value. Remember you also got about 10% back in tax credits, reducing what your out of pocket really was to around $20,000. Depending on the age of the system, and the KW production of the system the value added will be something around or more likely below the $20,000.
If you purchased Solar with a loan, and you are still paying on that loan, the value added is different. Like above, you still received your tax credits and may have used them to reduce the loan balance, also reducing your payment. That is delightful on your wallet, especially over time. Until you have paid down the loan, and have more equity in the system, the value it gives your home is significantly less. And as the system ages your equity increases… you are not likely to reach the same value given to the homeowner who pays for the system up front until the loan has been paid off.
See, Yes, No, Maybe
If you are considering Solar, give me a call I am happy to share my knowledge with you.