With growing concerns about climate change, more and more consumers are turning to renewable energy sources. Solar energy is one of the fastest-growing forms of renewables, primarily due to its long list of benefits and convenience for consumers. Solar roofing options are more accessible now than they’ve ever been. Since 2014, the average cost of solar energy systems has nearly halved, making them a feasible option for many people. Not only do solar energy systems allow you to save on energy costs and reduce your carbon footprint, but they can also add to the value of your home.
Solar Technology is Always Advancing
Some people think solar roofing is a passing trend and don’t see the real-world financial benefit it affords. But the reality is that solar roofing is far more prevalent than it was several years ago, and this adoption will only continue. More photovoltaic advancements and solar roofing options will emerge as time goes on.
With more solar technology will come more efficiency and convenience, leading to higher production of renewable energy. And as solar energy systems are refined and improved, there will be higher adoption rates.
In several years, solar shingles will become the new standard. Instead of using large solar panels, homeowners looking to go solar and install a new roof may be interested in solar roofing. These solar shingles look like conventional asphalt shingles but work like the original solar panels.
The future of solar roofing looks bright.
Solar Panels Can Increase Your Home’s Value
Solar panels are a great source of renewable energy and a fantastic way to save a chuck of change on your electrical bills. However, they have a substantial upfront cost, and if you’re considering investing in solar panels, you may wonder if they’re worth the cost.
To begin with, the long-term savings associated with solar roofing can help boost your home’s property value. The value of your home could increase by $20 for every $1 you save on utility bills, according to the National Renewable Energy Laboratory (NREL). If your solar panels, for example, save you $900 per year, your home’s value increases by $18,000.
Home appraisers and real estate agents have found this also increases your home’s market value when selling it. According to Zillow, 67% of homebuyers consider the inclusion of energy efficiency to be “very to extremely important” when shopping for a home. Buyers are willing to pay $15,000 or more for a home with a solar energy system.
According to Zillow, the average impact on the sales price of a solar-powered home is around 4.1%. The boosted resale values are higher in certain areas.
Factors That Impact the Value Add of Solar Roofing Systems
While these numbers can give you a ballpark, several factors affect the value added by solar panels. Some of the most common ones include:
Geographic Location: The market value of a solar-powered home varies depending on the home’s geographic location. States such as California, New York, Texas, Florida, and Connecticut have defined energy laws, incentives, and credits that make a solar investment profitable for homeowners.
Additionally, solar energy is impactful in areas with higher-than-average electricity rates, where generating your own electricity will significantly lower your monthly utility bills. If a buyer would save money by purchasing a home with a solar roofing system already installed, it will make your home much more valuable.
System Output: A more extensive system with higher energy generation will provide more added value. However, a solar system that sufficiently meets your home’s energy needs is enough for you to add a sizeable percentage to your home’s value.
System Condition: Homes with newer solar systems have a higher value than older ones. The expected lifespan of a solar system is between 25 and 35 years, so a system that is 15 years old can only provide another 10 to 20 years of service. The buyer will likely need to do repairs or replace parts sooner. Keep this in mind if your solar system is older than ten years.
System Replacement Value: How difficult or expensive parts of your solar system would be to replace also affects the value that a solar roofing system adds to your home.
California’s Solar Property Tax Exclusion
While installing a solar energy system increases your property value, it also increases your property taxes. However, California is one state that exempts homebuyers from paying increased property taxes.
The state has a goal of 100% clean energy by 2045 and gives homeowners relief from an additional tax burden when they install an active solar energy system on their homes. You may qualify for the solar property tax exclusion if the system meets on-site electricity, cooling, heating, or general energy needs.
Are you interested in learning more about solar roofing options? Our experienced solar roofing technicians at Straight Line Roofing & Construction are happy to answer your questions and help you decide if a solar energy system on your Sacramento-area home is worth it. Contact us today!