When renovating your house, you might consider where you can get the best bang for your buck. Should you update your kitchen? What should you do to increase your home value?
Adding solar panels to your house will increase the value by an average of 4.1%. Houses with solar units attached sell 20% faster than similar homes.
“Not only can adding solar panels to a home save energy costs and help the environment, it also can potentially increase a home’s value. During the past year, homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274.”
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Here are the top 10 states with the highest solar premiums, according to Zillow’s findings:
- New Jersey: 9.9% or $32,281 for the median-valued home.
- Pennsylvania: 4.9% or $8,589 for the median-valued home.
- North Carolina: 4.8% or $8,996 for the median-valued home.
- Louisiana: 4.9% or $7,037 for the median-valued home.
- Washington: 4.1% or $15,916 for the median-valued home.
- Florida: 4% or $9,454 for the median-valued home.
- Hawaii: 4% or $24,526 for the median-valued home.
- Maryland: 3.8% or $10,976 for the median-valued home.
- New York: 3.6% or $10,981 for the median-valued home.
- South Carolina: 3.5% or $5,866 for the median-valued home.
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So, let us look at real life examples from each of the states mentioned above:
1. Examples in New Jersey
In New Jersey, homes with solar energy installed are valued at 9.9% more than comparable homes. That is an increase of $32,281 for the median-valued home.
The first home we will look at is located at 8 Arthur Ct in Jackson, New Jersey. This home has 2 bedrooms, 2 bathrooms, and sits on a 6,534 square foot lot. This charming home is currently on the market for $316,000 and includes many features, such as solar panels. This house was also on the market for $168k in 1997.
A similar home, located just 13 minutes away, at 19 Lace Bark Ln in Jackson, New Jersey also has 2 bedrooms and 2 bathrooms, just like the home on Arthur Ct. While this similar home also has many great features, it does not include solar panels. It is on the market for $96,350.
We can see that there is quite a big difference in the prices of these two homes, even though they are in the same city and have the same number of bedrooms and bathrooms. A major difference in these two homes is that one has solar panels installed, and the other does not.
2. Examples in Pennsylvania
In Pennsylvania, homes with solar energy installed are valued at 4.9% more than comparable homes. That is an increase of $8,589 for the median-valued home.
The second home example we will consider is located at 1140 Taxville Rd in York, Pennsylvania. This home has 3 bedrooms and 1 bathroom and is 965 square feet on a 0.31-acre lot. The ad claims that you will never need to worry about paying your electricity bill ever again due to the solar panels installed on the roof. This house sold for $95k in 2018, and it is currently on the market for $149,900. That is quite the jump for only a few years!
A similar home on the same street also has 3 bedrooms and 1 bathroom. This house is 734 square feet and sits on a 0.31-acre lot. It was sold for $100,000 in 2019 and is valued today at $128,400.
The house with solar panels on the roof increased in value by almost $55,000 in 3 years, while the similar home without solar panels only increased $28,400 in value over the past 2 years. Even though these houses are located on the same street and are roughly the same size, the solar panel house is valued much higher.
3. Examples in North Carolina
In North Carolina, homes with solar energy installed are valued at 4.8% more than comparable homes. That is an increase of $8,996 for the median-valued home.
The next home example we will look at is located at 1231 Redcoat Dr in Charlotte, North Carolina. This home has 3 bedrooms, 2 bathrooms, 1,971sqft, and sits on a 0.4-acre lot. It was sold for $185k in 2012 but is now on the market for $500,000. The addition of solar panels makes this house highly sought after.
A similar home just down the street at 1628 Redcoat Dr. is also on the market and its asking price is $360,000. This is significantly cheaper than the house with the solar panels, even though both houses have 3 bedrooms and 2 bathrooms and are similar in size. This cheaper home was sold for $138k in 2001.
These two homes were built only one year apart and on the same street, and yet one is worth $140,000 more than the other. The reason? Solar energy!
4. Examples in Louisiana
In Louisiana, homes with solar energy installed are valued at 4.9% more than comparable homes. That is an increase of $7,037 for the median-valued home.
The fourth home example we will examine is a condo located at 3414 St Claude Ave Unit 3414, in New Orleans, Louisiana. This cute, colorful condo has 2 bedrooms, 2 bathrooms, and is 922 square feet. This condo comes with solar panels and a new inverter and is on the market for $265,000.
A similar house located on the same street is another condo at 3412 St Claude Ave Unit 3412, and it also has 2 bedrooms and 2 bathrooms. This condo also is 922 square feet, however, it is on the market for $253,000.
The only difference between these two condos is that one has solar panels and the other does not. Just that small difference increased the value of the property.
5. Examples in Washington
In Washington, homes with solar energy installed are valued at 4.1% more than comparable homes. That is an increase of $15,916 for the median-valued home.
The fifth home example we will discuss is located at 702 S Columbia St, in Ritzville, Washington. This home has 3 bedrooms and 3 bathrooms, 2,654 square feet, and sits on a 0.33-acre lot. This house includes solar panels, and it is currently on the market for $448,000.
A similar house located a few streets away at 110 E 5th Ave is a slightly larger home with 4 bedrooms, 3 bathrooms, 3,304 square feet, and sits on about a 0.17-acre lot. While this house has an extra bedroom, it is on the market for $259,995.
Even though one house had an entire extra bedroom than the other one, and they are located in the same neighborhood, the house with the solar panels is worth $188k more. Solar panels can make such a difference on the value of a home.
6. Examples in Florida
In Florida, homes with solar energy installed are valued at 4% more than comparable homes. That is an increase of $9,454 for the median-valued home.
The next home example we will look at is located at 6039 Almanac St, in Englewood, Florida. This house has 3 bedrooms, 2 bathrooms, 1,272 square feet, and sits on a 0.23-acre lot. It was sold for $175k in 2006, but since then solar panels were installed in 2017 and again in 2019. This house is now on the market for $224,900.
A similar home located just 8 minutes away at 8409 Roosevelt St. is similar in size. This house has 3 bedrooms and 2 bathrooms as well. It is also 1,272 square feet and sits on a 0.39-acre lot. This property was sold in 2009 for $48,000 and has a current value of $137,900.
While these houses are incredibly similar, they are quite different in price range. The home with the solar panels installed is worth $87k more than the comparable home.
7. Examples in Hawaii
In Hawaii, homes with solar energy installed are valued at 4% more than comparable homes. That is an increase of $24,526 for the median-valued home.
The seventh home example we will look at is located at 13-3393 Moku St, in Pahoa, Hawaii. This gorgeous home has 3 bedrooms, 2 bathrooms, 1,720 square feet, and sits on a 1-acre lot. It was last sold in 2017 for $297k. It has a grid-tied solar system. This home is currently on the market for $315,000.
A similar house on the same street at 13-3348 Moku St also has 3 bedrooms and 2 bathrooms. It is 1,314 square feet and also sits on a 1-acre lot. This property was last sold quite a while back in 1993 for $31,000, but it is now valued at $192,100.
These hawaiian homes are extremely similar in size and location, but there is quite a large difference in the price! The first home with the grid-tied solar unit is worth almost $123,000 more than the similar house down the street.
8. Examples in Maryland
In Maryland, homes with solar energy installed are valued at 3.8% more than comparable homes. That is an increase of $10,976 for the median-valued home.
The eighth home example we will discuss is located at 26033 Cresent Ln, in Mechanicsville, Maryland. This house has 3 bedrooms, 2 bathrooms, 1,834 square feet, and sits on a 0.31-acre lot. This house was last sold in 2014 for $225k. In 2015 the homeowners installed a Telsa Solar Panel System and raised its value to the $299,900 that it is valued at currently.
A similar home on the same street at 26160 Cresent Ln was last sold in 2010 for $146,000. Its current value is estimated to be $259,200. This house also has 3 bedrooms, 2 bathrooms, 1,264 square feet, and sits on a 0.45-acre lot.
The house that installed a solar panel system increased their home value by almost $75k. While the other house on the same street also increased in value over time, the house with the solar panels is worth $40,700 more, even though they are in the same location and are very similar in size.
9. Examples in New York
In New York, homes with solar energy installed are valued at 3.6% more than comparable homes. That is an increase of $10,981 for the median-valued home.
The next home example we will look at is located at 1612 Helderberg Trl in Berne, New York. This home has 3 bedrooms, 2 bathrooms, 1,700 square feet, and sits on a 9.7-acre lot. This lovely New York house is currently on the market for $219,000 and has “ample power supplied from the solar panels and the back up 17000 kw Generac generator.” This home was on the market in 2009 and was sold for $162,000.
A similar home, located just 20 minutes away in Middleburgh, New York, also has 3 bedrooms, 2 bathrooms. The house is 1,223 square feet and it sits on a 7-acre lot. This Middleburgh house was sold for 135k in 2014 and is currently on the market for $195,000.
While these two houses are similar in many ways, a major difference is that the house in Berne includes solar panels, and the house in Middleburgh does not. While both houses have increased in value since last being sold, the Berne house with solar energy’s value almost doubled, while the Middleburgh house’s value only increased a little.
10. Examples in South Carolina
In South Carolina, homes with solar energy installed are valued at 3.5% more than comparable homes. That is an increase of $5,866 for the median-valued home.
The last home we will discuss in this article is located at 7 Calhoun Dr. in Sumter, South Carolina. This house has 4 bedrooms, 2 bathrooms, 2475 square feet, and sits on a 21780 square foot lot. It was last sold in 2018 for $161k. The sellers of this house are giving the new buyer an option to keep the solar panels and take over the contract, or they can remove the panels. I am not sure why anyone would want to remove the solar panels from their home. Not only do they cut down the cost of your electricity bills, but they increase the home’s value! It is currently on the market for $192,000.
A comparable home, located on the same street at 47 Calhoun Dr. in Sumter, South Carolina is similar in many ways. This house also has 4 bedrooms, 2 bathrooms, 2431 square feet, and is on a 20000 square foot lot. While this house is quite similar in size, the price difference is surprising; it was just recently sold for $162,500.
Even though these houses are on the same street, in the same city, and are almost the exact same size, they are not valued at nearly the same amount. The biggest difference? Solar panels! The 7 Calhoun Dr. house includes solar panels, and it is valued at almost $30k more than the house at 47 Calhoun Dr.
Bonus
“As a bonus incentive, some states don’t count PV systems toward the value of your home when calculating property taxes. Adding a $15,000 kitchen will raise your property taxes, but a $15,000 PV system might be exempt. This comes down to local regulations, though, and certainly isn’t true everywhere in the U.S.”
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