Solar systems have many benefits; however it's the fiscal ones that make solar a mainstream solution to solving our current energy crunch here in the US. One such important measure is the added market value to one's home.
With solar being a relatively new "home improvement" option has been the center of attention by real estate appraisers in recent years. In 1998 the Appraisal Journal (Cited by Wells Fargo) sited that for every $1,000 saved in annual utility expenditures a home's value increases by $20,000. The basic premise being that every dollar saved in utility costs is available to be spent on a higher mortgage payment without a net increase in living expenses.
For example if we take a utility bill averaging $190 per month, over the course of a year that's $2,280 in annual utility costs. The table below taken from an American Solar Energy Society study shows the approximate cost for a 100% energy consumption system in comparison to the increased appraisal value.
| Solar Panel System Size | Final Net Cost After 30% Solar Tax Credit * | Appraisal Equity Increase @ 20:1 | % Cost Recovered |
| 2.6 kW | $16,380 | $17,600 | 107% |
| 5.2 kW | $32,760 | $44,200 | 135% |
| 7.8 kW | $49,140 | $72,600 | 147% |
It's important to note that while in each scenario the homeowner recovers 100%+ in cost, the larger the system the larger the increase in appraisal is to be had. This is in large part due to the increased economic efficiencies by avoiding the higher tiered costs associated by using more energy.
Many utility companies operate on what's known as a tiered pricing structure. As you use more electricity each additional kWh used costs incrementally more. That's to say if your first 500 kWh's cost "x" your 501st kWh would cost "x+y" (if your utility company has tiered pricing after 500 kWh of usage).
The value of solar increases over time both in dollars saved as well as appraised value as electricity rates rise. On average since 2001 the burden of utility costs have risen an average of 3.75% each year, and as utility rates continue to rise your home value will climb proportionately.
Solar has now exploded onto the scene for home improvement as the knowledge that solar panel systems provide a great property value boost in addition to enjoyed energy savings. Find a local verified solar power installer from our extensive solar panel installers directory in order to get the most accurate and up to date information about your solar project.