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How does having solar affect the selling price of my house?

Nationally and locally, homebuyers are paying a premium for solar. “Research from the real estate site Zillow shows that putting solar on your roof can boost the value of your home—sometimes significantly. In a comparative study, Zillow found that homes with solar energy systems sold for 4.1 percent more on average in 2019 than comparable homes without them. This means that the median-valued home in the country ($226,300) was worth an additional $9,274 just because of those magical panels.”

Buyers are willing to pay that premium in return for reducing or eliminating their electric bills, along with any future rate increases, for as long as they own the house. There are two associated financial benefits to consider. First is a cash flow issue. By not having to factor the utility bill into fixed monthly costs, the buyer looks better to the mortgage company and can afford a bigger mortgage.

Second is a tax issue. Energy Sage explains: “For any new solar PV system installed in Indiana, the assessed value of the system is exempt from your property taxes. That means that, even though your solar installation adds value to your property, the added value can’t be counted when property is being assessed for taxes.” You establish the assessed value of the system by presenting the county assessor with a copy of the contract showing the price you paid the installer.

Last but not least, more people every year want clean energy. A national survey by the Pew Research Center in June 2020 found that 79% of Americans think that the US should prioritize developing renewable energy sources. What do you think that means when it comes to buying a home? Solar homes sell faster because there are fewer on the market but more motivated buyers are looking for them.

Category: Financial Issues

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