Solar installations can indeed have a significant impact on property values, and this effect varies by state and region. Here’s a breakdown of specific states and regions where solar installations have a notable effect on property values:
States with High Solar Premiums
- California: Leads the U.S. in terms of the percentage increase in property values due to solar installations, with an average boost of 4.1%. This is driven by high electricity rates and an abundance of sunshine.
- New Jersey, Pennsylvania, and North Carolina: These states are noted by Zillow for offering among the highest solar premiums in the country.
- New York and Massachusetts: These Northeast states show increases of 3.5% to 4% due to strong solar incentives and high energy costs.
Regional Variations
- Northeast: This region experiences strong solar value increases due to incentives and high energy costs.
- Southwest (Arizona and Nevada): Despite good solar conditions, these states see more modest value increases (3% to 3.5%) because of lower baseline electricity costs.
- Midwest: Historically, the Midwest has seen more modest gains, but this is changing as technology improves.
Factors Influencing Solar’s Impact
- Local Energy Costs: Higher electricity rates in states like California and Massachusetts lead to greater property value increases from solar installations.
- Environmental Awareness: Regions with high environmental consciousness, such as coastal areas, tend to appreciate solar installations more.
- System Quality and Age: Newer, high-quality solar installations add more value to properties than older systems or leased solar panels.
Overall, while solar installations generally boost property values, the impact varies significantly across states and regions based on factors like energy costs, environmental awareness, and the characteristics of the solar installation itself.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-specific-states-where-solar-installations-have-a-greater-impact-on-property-values/
