Installing solar panels can increase your home value by over 4%.
The average home saves $10,000–$30,000 in energy cost from installing solar panels.
It can take several years for your home’s value to accrue due to solar panels.
Most solar customers get credits that cancel out their energy bills.
Understanding your warranty is important to get the most value from solar panels.
Many homeowners save thousands in utility costs over the course of their solar panels’ lifespan. Add to that a 4% average increase in home value, and it’s no wonder why you may be interested in adding solar panels to your home. Here’s what you should know about solar panels’ potential savings and how they add value to your home.
How Much Value Will Solar Panels Add to My House?
Solar panels will generally increase your home's value by 4%. Keep in mind that the full increase to get to that figure is calculated over 20 years. With the typical lifespan of a solar panel ranging from 25 to 30 years, you could expect to gain $20,000 to $50,000 in value in total. That amount is net savings after the cost to install solar panels, and includes benefits from the federal tax credit on solar panels, according to EnergySage.
Buyers are increasingly looking for ways to save on utilities when browsing listings. If you live in an area where being environmentally responsible is highly valued, your home may gain even more value than the average home after your solar panels are installed.
How Much Money Will I Save in Energy Costs After Installing Solar Panels?
The average homeowner saves between $10,000 and $30,000 in energy costs in the first 20 years after installing solar panels.
The specific amount that you're able to save in energy costs after having your solar panels installed can vary based on your local climate, your energy usage, the size of your home, and other property-specific details.
Many people wonder if they will still have to deal with monthly electricity bills after having solar panels installed. You will still receive electric bills from your utility provider if you go with a grid-tied vs. stand-alone solar system. However, you may not necessarily always be paying an electricity bill every month if your state allows for metering.
In most states, residents with solar panels are able to receive credits for their electric bills for any energy that they feed into the grid. You'll break even as long as you're contributing as much power into the grid as you're drawing out. However, you will be charged for any energy that you draw that isn't offset by your contributions.
How Solar Panels Help to Protect You Against Electricity Cost Inflation
Electricity costs generally increase between 1.3% and 1.8% annually. That means that the average homeowner's electricity bill is on a constant upward trajectory. When installing solar panels, you incur a one-time cost that locks in the cost of installing solar panels today. Locking in that cost now means that you're no longer concerned with variable utility rates that increase each year.
Ways to Get the Most Value From Your Solar Panels
Here are some tips to get the most out of your solar panels.
Compare solar quotes by getting bids from multiple local solar panel installers.
Choose the right types of solar panels for your property.
Evaluate all solar panel warranties before signing on the dotted line. This includes coverage for workmanship, installation, damage to roof, and damage-related roof leaks.
Ask your installation contractor to obtain a building permit that ensures that the work is in compliance with Federal Housing Administration (FHA) guidelines.
Ensure that the company providing your homeowners insurance policy recognizes the solar system being installed.
Discover if you can bank solar credits in your state.