Are you looking for a home improvement project that paybacks at any cost? Then, you might first opt for solar panels installment at your home. It guarantees the payback for your dollars and efforts. Not only does it increase the home value while selling your house, but it is also valuable during its lifetime.
What is the cost of solar panels installment? And how it can increase your home value? Don’t worry, in this guide, we have covered you in every aspect. Continue reading to get the best home improvement panels for you.
What is the Average Cost of Solar Panels Installation?
To plan a perfect budget, you need to consider various factors. Depending on the model, type, and company of solar panels, the cost varies. Also, your energy budget impacts the solar panels cost.
By Forbes, the average cost for the solar panel installation varies from $9620 to $16,000 for a smaller 4kw project. But for larger energy expenditures like 10kw, the cost varies from $22,000 to $35,000. But for the exact cost calculation, you need to weigh these factors:
- Roof space availability
- Utility electric bills
- Solar Incentives
Best Solar Panels Companies
If you are planning for solar panel installation, we recommend these top-notch companies.
- Shuttlesworth Solar Phoenix Inc.
- Sun Power Maxeon M-series
- Jinko Solar Tiger Neo
- Pansicinc EverVolt
- FuturaSun FU M Zebra
How Do Solar Panels Increase your Home Value?
The full life span of solar panels is about 25 to 35 years. It means they can payback 300% to 400% of your installation costs. Solar company phoenix is the best and most renowned company with maximum efficiency, average 25 years of savings up to $31,550, and a payback period of 8 years.
Here is the list of various factors that increase your home value with solar panel installation.
Lessen or Reduce the Energy Bills
Installing a solar panel for your house gives you freedom from the $200 monthly power bills. The buyer will find lavish savings of $24,00 a year with your house. Logically, he will not turn to the house with no panels on the rooftop.
On sunny and spring days, most homeowners get solar energy than they needed. The surplus is stored in the batteries to run their electricity system in the absence of sunlight. But here another question might stick to you. How much does the home value cost increase with these panels?
Increase in Home Value
The Appraisal Journal research states that home value increases to about $20 for every one dollar saved in terms of energy cost. Let’s clear it with an example. If your annual power cost is $24,00, you would expect an increase of home value to about $48,000 ($2400×20=$48,000).
National Bureau of Economic Research states another study and calculation for enhancement in home value. The home buyers gave an additional 4% premium to the houses with solar panel installation.
So, you can clearly negotiate with the buyer that my home value is worth more by the National Bureau of Economic Research by 4%.
Another research states, that solar panels increase the home resale value by $5911 per installed kilowatt. If you have a solar panel of a 3.1kw system, the home resale value will be increased by $18,000.
By all the facts and research, solar panels increase home value anywhere from $22,000 to $35,000.
Also, in some states, the property value is free from extra property taxes.
Qualify for Earning Taxes and Rebates
The average cost of bathroom remodeling resonates around $10,788 on average. Sound pretty close to the solar panel installation? It is, but the fact is that the kitchen or bathroom expenses did not payback for the taxes or other incentives while selling the home.
On the other hand, these panels qualify for tax credits for residential and commercial buildings. The running panels pay you a 26% tax credit for 2022 and 22% for the 2023 solar panels installation. This means you can simply save $7500 on the solar panels cost $25,000.
Net Metering Program Means a Lot
The net Metering program is vital for winters if you meet the criteria. In the net metering process, the excess electricity that our solar panel generates is sent to the grid in return for credits. The credits are used in the winter season when the panel doesn’t produce the needed supply of electricity. The credits pay for the utility and electricity bills.
Solar panels also increase rooftop lifespan by protecting it from dust, rain, or snow. Another important factor to consider is the cooling effect by solar panels. The sunlight is not directly absorbed into the roof but gets into the roof panel. By research, solar panels reduce the temperature by 5 degrees Fahrenheit.
Factors affecting the Home Value with Solar Panels
The following factors affect the home value and resale price, including the age of panels and electricity costs.
Age of PV or Solar Panel System
The solar panel installed in the late 1900 did not affect the home resale value than the PV installations of 2022. The newer the solar panels are, the greater they have the efficiency for generating electricity from sunlight.
In some states like New Jersey and Massachusetts, solar panels are more valuable than others. They have performance-based solar incentives and pay you for the electricity your solar panel produces.
Solar panels are economically profitable in various ways. You can save the power cost and initiate long-term savings. The solar panels increase the home resale value by up to $35,000. Make cost and electricity evaluation and install the required kW solar panel system from companies like solar company phoenix.