Home improvement can be a great financial investment, but it also carries a huge risk. Many design aspects, like countertops or carpeting, come down to personal preference. Many remodels can be time intensive and drag on with unexpected problems. Some never end up paying for themselves as well.
Going solar is a secure way to get the best bang for your renovation’s buck. Solar panels give you immediate return on investment by cutting down your electric bills. Best of all, they help you sell your home quickly and for more money!
Solar Homes Sell Faster, and for More Money
Solar often offers a higher return on investment than any other home improvement project. Studies have consistently demonstrated that going solar increases home value beyond the system cost. In 2015, the Department of Energy’s Lawrence Berkeley Laboratory and Sandia National Laboratories released a study showing that California home buyers will pay as much as $4 per watt of PV installed, while homebuyers elsewhere will pay around $3 per watt (a premium of about $15,000 for a solar home). Studies have found that solar homes spend less time on the market and often sell for much more money than their equivalent non-solar counterparts.
A Solar Home Renovation Example
Consider “Ann”, a fictional homeowner who recently went solar and she paid an average price per watt of $3.38. Ann purchased a 5.5 kilowatt home solar system for a total of $18,540. Because she purchased her system with a loan, she could take advantage of the Federal Investment Tax Credit (ITC). The ITC is equal to 30% of the gross system cost, in Ann’s case this amounted to a tax credit of $5,562, bringing down her price per watt to $2.36 per watt. Considering that California home buyers will pay as much as $4 per watt, Ann’s solar system would add about $22,000 of value to her sale price. Ann’s net cost for the system was only $12,980 after rebates, meaning that she recouped nearly 200% of her project cost.
If she chooses to sell her home in the future, it will likely be purchased quicker and for more money than other homes on the market. Until she’s ready to sell, Ann will be taking advantage of immense savings on her electric bill. Given the trend of California utilities to increase their rates, Ann will only save more as time goes on. If you want to invest in your home’s value or stop paying high utility rates, give A.M. Sun Solar a call today at, (805) 772-6786 or click here to get started with a free solar proposal!
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