What impact does the installation of solar panels have on the value of a home?

They increase the value of the home but have no effect on the taxable value of the home.

Most, of not all, areas in Houston won’t be affected, price wise, for solar panels, but it may increase marketability of a home. And, when a house sells more quickly, you save in carrying costs (your monthly cost of holding a property).

Sometime it can be a benefit and sometime it could be a problem. New buyers may not want it on their roof. My ask the seller to remove it before the sale.

Thanks
Anthony Taylor Realty

Hi Cathie,

Solar panels effect the monthly bill, if you pay $100 less in monthly for 30 years or you sell it to the electric network and made some money. It might add a value to the home over $30000 in time of loan. Or you can get a higher loan amount. On the other hand, this calculations may not be well received by the traditional appraisers.
Another approach might be the initial purchase and installation cost minus the deprecation of the equipment. Buyer's perception is also important, you might have a buyer who really cares about global warning and green energy and want to pay extra for a house with solar panels. Or do not give any importance or not care.
The location of the property is also important, if property is off-grid, it is essential and value is higher.
An objective and data proven option would be is to check in Matrix with the houses sold or selling with " Solar PV Electric Panels" in Energy Feature and see any difference in value. I made a quick search it is about only 120 properties in MLS with Active, Pending and Sold(Last 1 year)
Examining this data and comparing with the non-solar properties might give you better insights.

https://matrix.harmls.com/DE.asp?k=1800482XKH2K&p=DE-12689770-958

Thanks and Regards,

Cagdas Acar
acarster@gmail.com
832-283-1091
www.har.com/cagdasacar

Hi Cathy!

I'm glad you are thinking ahead about the return on your investment for improvements made to your property! When you begin thinking about any improvements to your property you'll want to consider, 1) is the sole purpose for your enjoyment or resale, 2) If for resale, will the improvements assist in the property selling quicker and for more money, 3) are the improvements something that increase the desirability of the home to today's buyers 4) What is your current cost basis in the home and will making the improvements put you over market for your neighborhood, etc, etc.

As the owner of a local, residential appraisal company, I can tell you that while there will be an adjustment given if favor of the subject property for the installation of solar panels as an upgrade, it will not necessarily equate to the amount of the expense you incurred to install them. The total amount of the adjustment is of course related to the entire property as a whole and the rest of the neighborhood / area. More information would be needed about the property, such as other upgrades, in order to accurately compare to the other comparables in the neighborhood. Only by looking at the entire picture, can you accurately assess whether the investment is worth your while. In other words, do other properties in the area of solar panels? Is the rest of the home compatible with the panels and energy efficient? Is your home upgraded with hard woods, updated baths and kitchen, good curb appeal, fresh paint and carpet, recent roof and mechaniclas, etc. If you were selling a non-(cosmetically) updated home with an older roof, windows and older mechanicals, then solar panels is not where I'd spend the money.

Hope this helps! Happy to discuss your specific situation further if you want to reach out. I can go into more detail than I can here.

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217

Hi Cathie,

Also offering a personal opinion-
Providing they are allowed by HOA, I would recommend that a homeowner check with his/her insurance company. Some companies will not insure a house with solar panels. They will also not insure a house with solar panels sitting on an older roof (another thing to consider when estimating the cost of the panels- is the existing roof good enough to support them or will a new roof be necessary).
In addition, it's worth mentioning that it takes approximately 20 years to recoup the initial investment and start seeing any substantial savings, so it may not be the best option for someone who does not plan on staying in the home long.

As far as adding value to the property- they will not add value dollar for dollar, but rather the estimated energy savings they will provide. I think each appraiser may also take the age of the solar panels into consideration, as well as age of the home.
Hope this helps.
Thank you,

Yvonne Chauvin

This is my personal opinion, as I have no first hand experience with a home selling with solar panels. I think solar panels are like some improvement projects like a pool - some buyers will love it, some won't want it (for solar panels because of the unknown maintenance), and some won't care either way. I'm sure this will change over time, as buyers see the value in energy saving things like solar panels. As far as what % you would receive in appraised value vs investment, it is best to view it as with most improvement projects, you will never fully redeem 100% of your investment back on the sale of your home from what you have put into it. Make improvements based on your needs, and what you would like, enjoy the benefits you will gain personally to the fullest. When it comes time to sell your home, have a Realtor who will help market the advantage of savings on electricity, dependence on the electric grid, and provide as much information as you can to dispel buyer's fears of maintenance etc. Again speaking personally, I think solar panels are great and look forward to more homeowners installing them!