Adding a photovoltaic system to one’s home not only cuts down energy use, but also increases the resale value. According to Robert Madden of Green Leaf Realty, solar powered homes have a price premium of 30% over non-solar homes. The same research indicates to potential buyers that should they want to invest in real estate, the more secure and profitable option long term is one that is already using renewable energy or at the very least has the capability to do so in future.
According to resale solar home figures in Phoenix, the median price for properties with renewable energy is $250,000 compared to $192,000 for non-solar homes, a significant difference. The number of solar powered properties sold in November, when the figures were taken, reflected the market and did not lead to additional closings.
Photovoltaic system capabilities improve re-sale profit by 30%
Mick Dalrymple, one of the leading sustainability researchers in the Walton Sustainability Solutions Initiative at theArizona State University School of Sustainability, says this clearly shows that solar energy homes have greater value. While it’s necessary to get additional data to obtain specific numbers, the fact cannot be denied.
Not all homeowners with a photovoltaic system should expect the same premium price though, as other factors may come into play. While there’s no question that a photovoltaic system adds value, the location of the property must also be considered. Apart from location, the time when the properties are sold will affect a buyer’s decision.
The report also revealed that the majority of solar properties are in the higher end neighborhoods. However this is hardly a surprise because the cost of installing a photovoltaic system is still expensive and has specific credit requirements. Even so industry observers say the cost of maintaining and running solar energy has gone down in the past few years and will continue to do so.
Popularity of homes with a photovoltaic system also seen in other parts of USA
Furthermore, the findings concerning Arizona solar energy homes reflects a trend seen in other states where solar properties also command premium prices. In fact there was a study done in California which indicate that the amount paid for homes with solar power was higher than the cost of installing the system.
Madden based his findings on information obtained from the Arizona Regional Multiple Listing Service. What Madden learned was that November sales included 81 solar homes, with 48 owned systems and 33 with photovoltaic systems installed.
Madden said the slowdown in total sales is typical because of the holidays, although it had no effect on the price of homes with a photovoltaic system. Also, the median price for these homes rose by 8.4% from the same period in 2013. Most interestingly, Madden says the values of these homes did not change regardless of the location or age.
Research shows solar homes to be a more secure investment for property owners
Researchers like Madden and others have noted that solar powered homes used to take 95 days to sell in October, but in November it took just 85 days. Either way, they sell at a rate that’s 4.5% faster than homes with no photovoltaic system.
