The average increase in home value due to solar panels varies between urban and rural areas, influenced by several factors such as location, system size, and local market conditions.
Average Increase in Home Value
- Urban Areas: In urban areas, homes with solar panels tend to sell for more than those without them. A Zillow study found that homes with solar installations sell for about 4.1% more on average, though this can vary significantly by location. For instance, in New York City, the increase is around 5.4%. In California, which includes many urban settings, homes with owned solar panels sold for 5-10% more than comparable homes without solar.
- Rural Areas: In rural areas, the impact of solar panels on home value can be different. Utility-scale solar arrays, which are more common in rural landscapes, can sometimes decrease property values due to visual impact or disturbance to the natural environment. For example, some studies found a reduction in property value ranging from 1.5% to 5.8% near large solar farms. However, data specifically on rooftop solar in rural areas is less consistent. While some studies suggest that solar panels can add value in any setting, the premiums may be lower in rural areas due to different market dynamics and perceptions.
Key Factors
- Location: The increase in home value due to solar panels varies significantly by location. Regions with strong solar incentives and high electricity costs tend to see greater value increases.
- System Ownership: Owned solar systems tend to increase property value more than leased systems, as homeowners benefit from the long-term savings and asset increase.
- System Size and Age: Bigger systems and newer technology can add more value, as they provide greater energy savings and efficiency.
In summary, while urban areas generally see a noticeable increase in home value due to solar panels (often around 4-10%), the impact in rural areas can be mixed, especially with utility-scale projects potentially reducing values. However, rooftop solar in any setting still tends to add value due to energy savings and market appreciation for sustainable homes.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-is-the-average-increase-in-home-value-due-to-solar-panels-in-urban-versus-rural-areas/
