Research Shows Solar Energy Systems Increase Property Values
According to recent research by Zillow, adding a solar energy system to a home can increase the property value by as much as nearly 10% in addition to lowering electricity bills.
Zillow’s research found that more than 80% of home buyers cite energy-efficient features as being important.
The sale premium varies by market. For example, in the greater New York City metro area, solar-powered homes have a premium (5.4%) that is double that of Riverside, California (2.7%).
Zillow notes that the Top 10 states where solar energy most increases property values are:
- New Jersey (9.9%)
- Pennsylvania (4.9%)
- North Carolina (4.8%)
- Louisiana (4.9%)
- Washington (4.1%)
- Florida (4.0%)
- Hawaii (4.0%)
- Maryland (3.8%)
- New York (3.6%)
- South Carolina (3.5%)
Zillow cites future energy cost savings as a major reason why homes with solar energy systems can command higher prices. The research also points out that homes with these systems may be more likely to have other features—such as heated floors—that are desirable.
California has passed legislation that requires solar panels on all new homes beginning in 2020. It is the first state in the country to do so.
Zillow calculated the solar premium by comparing homes with and without solar-energy systems that were listed for sale and sold from March 1, 2018 to February 28, 2019. The study controlled for observable attributes of the homes, including bedrooms, bathrooms, square footage, age of the home and location.
