What Will Happen to the Resale Value of My Home When I Go Solar?

Solar energy isn't just about going green; it's also about saving green. In New England, homeowners are discovering that solar panels can have a significant impact on their property's value. However, the decision to go solar involves careful consideration of various factors. Let's dive into how solar energy can be a smart investment for your home in the region, while addressing some common concerns.

Why Solar is Taking Off in New England

New Englanders are no strangers to high electricity bills, especially during those cold winters and humid, hot summers. The region has been grappling with frequent energy crises, characterized by skyrocketing electricity rates and supply issues. With energy costs rising at an alarming rate, many homeowners find themselves paying more each year just to keep the lights on and their homes comfortable.

Solar energy offers a solution to this problem. By installing solar panels, homeowners can reduce their reliance on the grid, leading to lower or eliminated electricity bills and protection against future rate hikes. 

How Solar Increases Home Value

1. Energy Savings: Solar panels can significantly reduce your electricity bills, making your home more attractive to buyers. Savings vary based on system size, efficiency, and local weather conditions.

2. Environmental Appeal: Many buyers, especially Gen X and millennials, prefer eco-friendly homes. Solar panels are a big green flag, but it's worth noting that not everyone may be willing to pay a premium for this feature which is why savings and protection against future rate increases is important. 

3. Energy Independence: Solar panels offer a buffer against high electricity costs and supply issues, providing a measure of energy independence. This insulation from the volatility of transmission and delivery charges can be appealing to potential buyers.

4. Local Incentives: Buyers love inheriting financial perks from existing solar incentives and rebates. However, these incentives can change, and it’s crucial to understand the local policies and how they impact your investment.

5. Net Metering Grandfather Utility Policy: Homes that have locked in a 1:1 or high net metering policy with their utility are selling at a premium. Looking at California, who have taken away full net metering for new homes that go solar, homes that are locked in NEM 1.0 or 1:1 Net Metering are selling at a premium for this locked-in policy in addition to the premium for the projected savings of the system.

Numbers Don't Lie

Research shows solar panels can boost your home's value:

Lawrence Berkeley National Laboratory (LBNL) study: Read the study conducted by LBNL, which found that homes with solar panels generally sell for a premium compared to homes without solar installations.

Zillow report: Read the Zillow report which highlights that homes with solar panels can sell for an average of 4.1% more than homes without solar energy systems.

Local Success Stories

Maine: A Portland home with a 10kw system sold for $25,000 more due to the $100k 25 year savings the system projected, along with the renewable energy credits the new home buyer inherited that will pay them a quarterly check for many years.

New Hampshire: A Nashua home with a 8kw system sold for $18,000 more due to having owned solar panels. The sellers passed on their loan payment to the buyers, along with the system’s renewable energy credit incentive payments. 

Massachusetts: A Framingham home with a 5 kW solar system saw a 3-4% bump in value compared to similar homes without solar. The sellers also took home the federal tax credit they qualified for, leaving them with an extra $10,000 in capital as a result of the credit.

Connecticut: A New Haven home got their roof replaced, main service panel upgrade and their solar system installed for no money down and then used the upgrades to sell their home faster and at a $30k premium without having to spend a dime out of pocket. The new home buyers took over the monthly payment for the panels, just like an electric bill but fixed, finite, and lower.

What Homeowners Should Consider 

Before you jump on the solar train, keep these tips in mind:

System Ownership: Owned solar systems typically add more home value than leased ones. However, leases can be a selling point as well. 

Maintenance and Warranties: A well-maintained system with a good warranty boosts buyer confidence.

Local Market Conditions: Home value impact can vary based on local market trends and buyer preferences. 

Choosing the Right Solar Installer: A poorly installed solar system can lead to numerous problems. Ensure you vet solar installers thoroughly, checking their reputation and make sure that you are dealing with professionals who keep their work in-house. 

What Does This Mean For You?

Going solar can be a win-win for New England homeowners. With robust state incentives, high electricity costs, the current net metering policies, and growing demand for eco-friendly homes, solar panels can significantly increase your home's value. However, it’s crucial to choose the right contractor and understand potential downsides. By carefully considering these factors, you can make an informed decision that could pay off big time.