How a Solar Installation Affects. Property Value. Find out how much will your home s value increase by going solar?

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1 How a Solar Installation Affects Property Value Find out how much will your home s value increase by going solar? Simply Solar 2017

2 Overview According to Lawrence Berkeley Laboratory (LBL) and The National Renewable Energy Laboratory (NREl), installing solar panels will significantly increase a property s value and decrease the length of time it is on the market. Rule of Thumb Going solar will increase your property value, but by how much? The variability of property value increase is dependent on a number of factors, including: Home location Installations in active solar markets will, on average, yield a higher return than solar investments in less developed markets. Installation size & quality The amount increase of a property s value is directly proportional to both the size and quality of installation. Current home value Homes with a higher than average property value before going solar will, on average, produce a higher boost in property value after going solar.

3 Property Value Increase Various studies found that a solar installation will increase a properties value. But how much will your property value really increase? Do solar panels (really) add value to your property? Yes, installing a solar array will (really) add value to your property. The LBL reports that a purchased solar system will increase a property s value equal to or greater than the system s purchased price. In fact, LBL states that solar homes benefit from a solar premium when sold. This is because today s prospective home buyers are looking for homes with solar and are also willing to pay more for a solar home. How much value is added? The LBL states that homes located in California will recoup $4/watt of installed PV solar, whereas homes located elsewhere in the U.S. will recoup $3/watt of installed PV solar. Thus, a home with a 5kW PV solar installation will sell for around $20,000 more than it would have without solar.

4 Property Value Increase Cont. When going solar it is important to choose a payment option that best suits your needs. The various payment options will have variable impacts on property value increase. Get the most bang for your buck! Payment Options: 1. Cash or Finance 1. These options will give you the freedom to either stay in your home and reap the savings benefits or sell at a higher value than previously assessed. 2. Lease or PPA 1. These options do not increase property value, because the solar company is the owner of the solar array, not the homeowner. Property Value Change vs. System Cost The LBL found that the average solar premium was larger than the average solar system net cost. Across six different states, California was found to have one of the highest PV home premiums (View Figure 1). In fact, the average solar premium for all homes in the study exceeded the Net System Cost.

5 Solar Home Premium Solar Homes vs. Non-Solar Homes on the Market NREL found that solar homes not only sell more quickly than non-solar homes, but they also sell for a higher price. Research showed that solar homes sold 17% more quickly and appreciated more than non-solar homes. How the Value of Home Solar is Assessed The Federal Housing Administration (FHA) requires that all homes with solar be assessed and have the solar array s value added to the total appraisal value of the home. This assessment is most often conducted when the home is being prepped for sale. To ensure your solar investment is included in the total home appraisal it is essential to find an appraiser who is up to date on the value of solar. Conclusion Whether you intend to sell your home in the next few years or remain living there you will quickly recoup your solar investment. Key Takeaways Solar will increase a properties value roughly $4/watt of PV solar installed, in California. To have the value of solar added to the homes total appraisal value the owner of the solar array must also be the owner of the home (must be an outright purchase or financing option). Properties with solar will sell for 20% more and 17% faster than nonsolar properties.