Long-term Effects of Solar Installations on Property Values
The impact of solar installations on property values over time varies depending on the type of solar installation (residential versus utility-scale) and location. Here are the main points to consider:
Residential Solar Installations
- Initial Increase in Value: Studies have shown that residential solar installations typically increase a home’s value by 4% to 5% on average compared to similar non-solar properties. For example, in New York City, homes with solar panels sell for about 5.4% more on average.
- Long-term Retention: Solar installations tend to maintain and potentially increase their positive impact on property values over time. Factors contributing to this include ongoing energy savings, increased demand for sustainable features, and advancements in solar technology.
- Energy Savings and Sustainability: The financial benefits of reduced electricity bills and the appeal of sustainability features attract buyers, making homes with solar more attractive and valuable.
- Market Conditions and Location: The value added by solar panels can vary based on local demand, solar incentives, and specific market conditions. Regions with high energy costs or strong environmental preferences see greater value increases.
Utility-Scale Solar Installations
- Negative Impacts: Utility-scale solar installations can negatively impact surrounding property values, particularly when they are close to residential areas. Studies indicate property values may decline by amounts ranging from $5,741 to over $1.7 billion cumulatively for properties near solar arrays.
- Concerns and Location: Concerns arise when utility-scale installations are placed in proximity to homes, suggesting a need to locate these facilities away from residential areas to mitigate negative impacts.
- Varied Research Outcomes: There is some discrepancy between studies funded by solar developers (which often show no negative impact) and independent research, highlighting a need for careful planning in the siting of utility-scale solar facilities.
Key Takeaways
- Residential Solar: Generally increases property values due to energy savings and sustainability appeal.
- Utility-Scale Solar: Can decrease property values if not properly sited, emphasizing the importance of strategic planning.
- Location and Market Factors: Significant influences on the impact of solar installations on property values.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-long-term-effects-of-solar-installations-on-property-values-over-time/
