Blog > Solar Panels & Market Value
In Austin the July sun is bright, direct, and relentless.
That seemingly nonstop Texas summer sun is why so many Austinites have turned to solar power. In fact, according to a May 2020 report, Austin was ranked as the top city in the U.S. for solar power.
We hear about the environmental benefits of solar power: limited use of fossil fuels, lessening our carbon footprint, combating global warming, healthier people, healthier plants and animals, water conservation, etc.
There are other benefits, however, to using solar panels, such as lower utility bills and a potential increase in property value.
A study by the U.S. Solar Energy Technologies Office shows that equipping a home with solar panels increases its value by an average of $14,329 and sells for 3.74% more on average than non-equipped homes.
We wanted to look further into the benefits and drawbacks of equipping your home with solar panels.
IS IT WORTH THE INVESTMENT?
As mentioned above, the value of a home increases, on average, by over $14,000 when they are equipped with solar panels.
It’s important to remember, however, to factor in the cost of the solar panels as well as your overall energy bill savings.
On average, the cost of installation and equipment ranges from $15,000- $25,000 at an average of $3-$5 per watt; however, Texas is on the low end of that equation. The average cost per watt in Texas is $2.91, which comes out to $11,575 for a 5kW system.
Based on these averages, there is a good chance solar panels will turn into a good investment for you.
That’s exactly what it is though: an investment.
Unless you plan on dropping $15,000 at onCE, you will likely pay the solar panels off over time, so consider your timeline and long-term goals, as well, when making this decision.
OTHER FACTORS THAT DETERMINE MARKET VALUE
It should go without saying that solar panels and other modern, top-notch features aren’t the only ways to increase value of your home. There are so many factors that determine how much your home is worth, such as location, year built, floor plan, condition, recency of upgrades, and amenities.
THE BEST WAY TO DETERMINE MARKET VALUE
The best way to determine the value of your home is to talk to a real estate agent. They are home experts who are equipped to assess your home from every angle and crunch the numbers. If you’d like to do some research on your own, start with an online home evaluation, like this one.
CONCLUSION ON SOLAR PANELS
Taking advantage of the Central Texas summer sun can be a great move for both the environment and your financial health. To know if it’s the right decision for you, ask your agent!