Solar energy offers many benefits, from helping you save on your monthly utility bills to making your home more eco-friendly. Homeowners often ask if solar systems can increase their home’s value.
Types of Solar Systems
There are two types of solar systems that can be installed on your home: a grid-connected system and an off-grid system. Both systems utilize a power inverter installed between the house’s power mains and the grid. It converts direct current (DC) collected from the solar panels to alternating current (AC).
Grid-connected systems are the most common type of solar system. The AC that comes from the inverter becomes the house’s primary source of energy. The inverter automatically switches back to grid energy at night or when the weather doesn’t allow enough sunlight to reach the roof. If your energy provider has a net metering service, the company may buy the energy from you or issue credit on your next bill.
Off-grid systems are not connected to the grid at all. Instead, they have batteries that charge when sunlight is available and kicks in when it’s not. It also includes equipment, such as a charge controller, a power-conditioning system and meters for monitoring battery health.
Can Solar Systems Raise a Home’s Value?
The Office of Energy Efficiency and Renewable Energy (EERE) reports that having a solar energy system can increase the house’s value and that many home buyers are willing to pay a premium for a home with a solar array. However, it’s not as straightforward as other home improvements like roof repair or siding installation. Some solar system providers lease the equipment instead of selling them to the homeowner, which may create a lien on the house.
Some appraisers estimate a $20 increase in value for every dollar reduced in annual utility bills as in a $300 reduction in utility bills can equate to about $6,000 increase in home value. It’s worth noting that while a solar system can boost a home’s value, it may not necessarily make the home attractive for every home buyer.
Berry Roofing & Solar is your leading provider of roofing and solar system installation as well as other services, including installation of solar tubes. Give us a call at (951) 905-5117. You can also fill out our contact form to schedule an appointment.