One of the most common questions we receive at Inter Faith Electric & Solar is “will solar panels increase the value of my home? While there are variables for every home, here in sunny Southern California, the answer is always a resounding YES! There is simply too much sun to make the economics of solar panels not work.
Read this blog post to learn how solar panels increase the value of your home and how to save the most possible money with solar panels.
How do solar panels actually make home values go up?
They reduce energy costs
Simply put, you (or whoever owns your home in the future) will no longer have to pay for electricity. The loss of this expense means the money saved on power is now essentially added to the value of your home.
We don’t have to tell you — this is big! Electricity prices are rising more and more, particularly here in Southern California. This rise in electricity prices will eventually have to be made up in other parts of your budget all to get the same amount of electricity you’ve always gotten. We don’t think this is right!
Getting out from the yearly rise of electricity and investing in solar panels will prevent you and your family from having to make cut backs in other parts of your budget.
You are investing in a renewable resource
Unlike other sources of electricity and power, solar power is run completely through a renewable energy source. You’ll never have to worry about a resource scarcity causing the price of your electricity to go up.
While this may seem unrealistic, the country (and world) have gone through several periods in our history where resource prices went up overnight. This happens all the time with gasoline. The price will go up due to a supply issue, war, or tariff imposed by a president or other country’s leader.
Relying on the sun eliminates these potential hiccups from the situation. No one owns the sun — you’ll have free access as long as it’s shining here in Southern California!
There are economic incentives
California and the federal government realize the economic and environmental benefits of solar panels and are willing to chip in to make it even more affordable for you. They do this through tax credits and rebates, including:
- Federal Investment Tax Credit: Allows you to claim 30% of system cost as a tax credit
- New Solar Homes Partnership: Can allow for a 50% rebate on new systems
- Local incentives: Cities from Los Angeles to Glendale offer local credits that can save significant amounts on your costs
The only way to actually take advantage of these benefits is to buy (and definitely not lease) your solar panels! (More on this soon!)
They will make your home more “eco-friendly”
Homebuyers now value sustainability when making home buying decisions. Having sustainable features in your home make it more attractive, and therefore valuable.
There is simply no better way to make your home sustainable than to equip it with solar panels. This allows your home to be “off the grid” and not be contributing to BIG ENERGY’s dominance over how you power your home.
It’s both good for the environment and good for your independence.
They modernize your home
Nothing degrades the value of a home more than a home being “outdated.”
Starting in 2020, all new homes built will be required to include solar panels. The reasons for doing this include:
- Lower costs for homeowners
- A reduced reliance on fossil fuels
- Higher home values
Once solar panels are standard on new homes, any home that does not have them will be put at a disadvantage when it’s on the real estate market.
It will appeal to a younger generation
Expand potential buyers of your home to a younger, tastemaking generation of homebuyers!
A recent study has shown that younger generations, such as millenials, care more about buying a home than getting married, paying off debt, and traveling. Opening up your potential homebuying base to this larger group of homebuyers at its core makes your home more valuable.
In addition to the trendy kitchens, open floor plans, and outdoor living spaces that young people crave, they also value alternative energy sources and living independently. Solar panels appeals to this want and will increase the amount home buyers (particularly young ones) are willing to spend.
How to get the most out of your solar panels
Deciding to use solar panels on your own home is the first step in adding value to your home. Still, there are a couple IMPORTANT things to keep in mind to make sure you’re getting the most value possible out of your investment.
Buy and don’t lease
In order to fully experience the cost-saving features of solar panels, they need to be owned by you! Otherwise, the financial benefit of owning solar panels is just transferred to whoever does own them (Hint: the solar panel leasing company!).
It’s imperative that you BUY and not LEASE solar panels. Just look at the difference:
When You Lease
- The panel leasing company gets all tax credits and rebates
- A lien is placed on your home
- Monthly payments are not guaranteed, potentially leading to ever-increasing costs
- Total electric reach $.18/kwh or more
When You Buy
- You receive all state AND federal tax credits
- Your home value will increase
- You’ll have flat monthly payments
- Your total electric costs will be as low as $.06/kwh
While you may be thinking “how can I afford to buy solar panels?” — it’s actually quite easy!
You can finance solar panels for as low as $0 down with interest rates starting at just 2.99%, which is slightly less than the current rate of inflation. You’ll know the exact amount you’ll pay years into the future for your energy.
If you have bad credit, that’s no problem, either! Flexible financing plans are available for credit histories across the credit spectrum.
Have them installed by Inter Faith Solar and Electric
At Inter Faith Solar and Electric, we’ve been installing solar panels to increase home values in Southern California for years. We take pride in working with some of the best houses in the area and know how to compliment a modern home.
Contact us today to learn how you can increase the value of your home and establish energy independence today.