Can heavy rain damage solar panels?
Solar companies in Arizona know solar panels and batteries can improve a property's value. One study found that solar panels can increase a home’s resale values by as much as $5,911 per kilowatt. Another study estimated an increase in value of 4.1%.
These figures are derived from where exactly? Consider a Zillow study that shows homes with solar panels fetch 4.1% more than those without. This is just an average. Some areas have a higher, and others show lower
These amounts are approximately in line with the total price of a solar panel system. This may be the incentive you need to leap solar power.
Factors that Influence the Value of Solar Panels
These simple calculations may give an idea of the potential value of solar panels, but many factors can affect it. The most important are:
- Geographical location: Different communities have different electrical costs. Higher electrical costs will result in higher solar panel value. Geography can also influence how much sun you receive and the social benefits associated with solar power.
- Prices for local solar installations: Another factor that affects your location is the cost of installing a new system. A home with an already installed system will be more attractive to buyers.
- System output As shown in the chart, a more extensive system that generates more energy will bring more value.
- System age You will need to account for depreciation if you have an older solar panel. Because older systems are more likely to need repairs or replacements, they won't be worth as much when you sell your house.
- System replacement value The same as system age, the cost of replacing parts in your system can impact the overall system's value.
How do solar panels affect property taxes?
Your property taxes will usually go up if your property values rise. There are exemptions in many states, so your property taxes will not increase if you have a solar system. Here is a list of exemptions for property taxes by state.
Are Solar Panels a Good Idea for Your Home?
It makes sense to weigh the benefits and cons of solar power. Also, consider the impact on property values. Other factors to consider include:
- The amount you pay for utility bills each month. A high-average electricity rate area will give you a higher return on your investment in solar energy.
- The amount of sunlight your home receives throughout the year. Some homes are better suited for solar panel installation than other homes. It makes more sense for your home to be solar if it is at the best angle for harnessing sunlight's energy.