Does Solar Photovoltaic Increase Property Value?
Introduction
When considering installing solar photovoltaic (PV) panels on a property, one of the common questions that arises is whether it will increase the property value. Solar PV systems are becoming more popular as people seek sustainable and renewable energy sources, and as a result, it is important to understand the impact they have on property values.
Factors Affecting Property Value
1. Energy Savings
One of the key factors that can increase property value with the installation of a solar PV system is the potential for energy savings. These systems can significantly reduce electricity bills, making the property more attractive to potential buyers.2. Environmental Benefits
With the growing concern for environmental sustainability, homes with solar PV systems are seen as more environmentally friendly and can fetch a higher price in the real estate market.3. Government Incentives
Government incentives and rebates for installing solar PV panels can also increase the value of a property. Buyers are likely to pay more for a property that already has these incentives in place.
Evidence of Increased Property Value
Several studies have been conducted to assess the impact of solar PV systems on property values. A study by the Lawrence Berkeley National Laboratory found that homes with solar panels sold for a premium compared to those without, with an average increase of around $15,000.Another study by the University of California, Berkeley, found that for every kilowatt of solar installed, the resale value of a home increased by nearly $5,900.
