In 2011, the National Bureau of Economic Research (NBER) concluded a study of the impact of solar energy systems on homes in and around San Diego and Sacramento. The research team found that an average residential solar energy system added three to four percent – or around $22,500 – to the average home’s value. They also found that the cost of installing the system was less than the appreciation in the home’s price due to the presence of solar panels.
Another study released in 2011 by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (LBNL) looked at California homes from 2000 to 2009, and found that “California homes with PV systems have sold for a premium over comparable homes without PV systems.” According to the researchers, most homes increased by an average of $5.50 per installed watt of solar capacity. And like the NBER’s study, the value added by the solar system exceeded the costs of installing it.
A follow-up study conducted by LBNL and Sandia National Laboratories confirmed the results of the prior studies. Published in 2015, the team’s report drew on data from 22,000 home sales in eight states from 1999 to 2013. The researchers found that “home buyers are consistently willing to pay PV home premiums across various states, housing and PV markets.” According to the research team, home prices increased by around $4 per installed watt or a premium of $15,000 for a 3.6-kilowatt solar system.
In other words, installing solar on your home is, financially speaking, a good move – but only if you own the system. If you’re leasing it, on the other hand, you may run into a few hurdles. Homeowners who have leased their solar system have to find a buyer willing to take on the lease. And, the company that leased and installed the equipment has to renegotiate and approve the new homebuyer.
