It’s no secret that solar panels are a positive investment. Providing energy for the home without harming the environment is something that should appeal to all of us. But what about the financial side?
Recent studies in the US show that installing solar photovoltaic panels can actually increase home value, suggesting that homeowners can recoup the cost of the initial investment upon selling their home. The US Department of Energy compared the sale values of 2,000 solar homes and 70,000 non-solar homes in California from 2000 to 2009.
Their research revealed that existing homes with solar panels increased the resale value (expressed as $ per Watt of the installed system) by up to $7.7 per watt, whilst new homes increased by up to $2.6 per watt. Taking into account the size and age of homes as well as housing market fluctuations, their findings show that solar panels added $5.50 per watt to their resale value on average. The total premium is comparable to the solar panels’ installation cost, meaning it would be recouped upon the property’s sale.
It is suggested that solar panels not only act as a differentiation to set a house apart from others, but also help speed up the sales process.
The Feed-In tariff, intended to promote the use of solar PV technology, was introduced to California in February 2008 and has therefore been in place longer than in Australia. As the Australian solar markets grow and develop through time, they could very well follow the same trend with solar panels adding a similar value to homes.
In addition to adding to sale value, investing in solar power also provides homes with free and clean electricity from the date of installation to the final sale.
The UK’s Feed-In tariff currently guarantees 43.3 pence for each unit of electricity that the homeowner’s PV system generates, as well as an additional 3.1 pence for every unit exported back to the national grid. This in turn means a potential return on investment upon the sale of the property, as well as a guaranteed 25 year income for homeowners with a good rate of return.
The report mentioned in this article can be viewed at http://newscenter.lbl.gov/news-releases/2011/04/21/bright-spot-for-solar/