New Study Shows Home Values Increase With Solar
You may have already known that having solar on your home can increase your property value. A 2019 report from Zillow uncovered data showing that homes in the U.S. with solar energy systems sold for 4.1% more on average than their non-solar counterparts. While that’s an already exciting statistic, the landscape looks even more promising just five years later in 2024.
SolarReviews.com, a leading platform for solar installer reviews and consumer insights, recently conducted a study using Zillow home sales data over the past three years that compared hundreds of homes with and without solar. They found that homes with solar energy systems now sell for 6.8% more on average than comparable homes without solar. According to the study by SolarReviews, based on the U.S. median home value, having solar would translate to an average of $25,381 in additional property value. Considering that the average cost to install a residential solar system is around $19,000, this results in a net gain of over $6,000.
The housing market has experienced its share of fluctuations since 2020. From fluctuating interest rates to varying demand in different markets, it’s been a rollercoaster. However, one constant has been the added value of solar panels to home prices. Regardless of the housing market, homes with solar energy systems consistently command higher sale prices nationwide.
About the SolarReviews Study
SolarReviews took great care and effort in replicating the 2019 Zillow study to ensure their metrics would be as accurate and unbiased as possible. Through Zillow’s public records, the SolarReviews team was able to find over 400 homes (with and without solar) that they analyzed. SolarReviews’ Marketing & Communications Manager, Ana Almerini, described the criteria of the study in their recent publication:
“For every solar home, we found a non-solar home that was located in a similar area, had similar square footage, and was sold around the same time, and we compared sale prices. We also considered the age of each home. On average, the solar homes in our data set were built 1.8 years after their non-solar counterparts.”
The criteria used for the study to ensure similar homes were being compared for accurate analysis is listed in the SolarReviews article.
Results of the Study
Based on the findings, across the US homes with solar sell for 6.8% more on average than homes without solar. According to the study, the mid-Atlantic region showed notable above-average increases in home values. For example, Maryland’s solar home market is performing well above the national average, selling at 7.7% more than their non-solar comparables. In Baltimore, homes with solar energy are valued even higher at 7.9% more than homes without solar panels. While falling slightly below the new national average home value increase of 6.8% percent, prices of homes with solar in Pennsylvania have grown substantially to 6.3% higher than homes without panels.
In the nation’s capital as well, the study reveals an increase of home values above the original national average home value bump of 4.1% reported by Zillow in 2019, to 4.6% based on home sales from the last 3 years (2020-2023). Overall, the mid-Atlantic region displays a strong increase in home values looking at this new data.
These findings confirm what we have always believed: solar energy is a valuable investment for homeowners. By choosing Lumina, you are not only reducing your carbon footprint and saving on energy costs, but also significantly increasing your property’s market value.
Join the Solar Revolution with Lumina
As sustainable options become a priority for home buyers, adding solar panels can significantly enhance the value and marketability of your home. At Lumina, we’re here to help you navigate the transition to solar energy with ease and confidence.
Contact Lumina Solar today to learn more about our services and schedule a free consultation.
Sources
Solar Reviews 2024 Study
https://www.solarreviews.com/blog/solar-home-value-report
Zillow 2019 Study
https://www.zillow.com/research/solar-panels-house-sell-more-23798
