This is a great question and one asked often before making an investment in residential Solar system on the roof of a home.
In Ontario, we don’t quite have enough history yet to prove that adding Solar will in fact increase the value of your home. Having said that, in the U.S where Solar has been around longer than Ontario, the evidence suggests that having a Solar system could very well increase your property’s value.
A study conducted by the U.S. Department of Energy’s (DOE) Lawrence Berkeley National Laboratory ( http://newscenter.lbl.gov/news-releases/2011/04/21/bright-spot-for-solar/ ) in 2011 found that homes that have solar electric systems installed actually have a better market value and sell for better prices as compared to those houses that do not. The study brought to light the fact that homes that have PV solar panels installed sold for a premium that ranged from $3.90 – $6.40/watt of capacity, averaging to about$5/watt.
Another study conducted by NBER ( National Bureau of Economic Research) also found that solar panels did increase the value of a home at the point of sale by 3 – 4%. The two findings are complimentary to each other and point to one conclusion.
Why? Well, let’s play a simple scenario for you. Let’s say that you decide to move after 12 years of your 20 year contract with the Ontario Power Authority. By this point, your system should be completely paid off and you are now benefiting by receiving monthly cheques from your local Hydro Company. Now, not only are you selling your home, but you’re also selling a source of income associated with your Solar system! You should be able to easily show past years performance numbers of how much you made. That has value and is attractive to potential buyers because it is a potential lucrative income stream to them. Think about it, now they may be able to afford a bigger mortgage as a result of that additional income.
You could say that Solar is kind of like having a basement apartment with a renter except unlike a renter, Solar systems don’t make any noise, and Hydro companies have lots of money so they pay their monthly cheques on time!
So it’s a win -win situation whether you decide to sell your home or not. And all this while saving the environment! – Super! In case you are curious about how much it would cost to install solar here’s a post where you can find out : How much does a solar power system cost? And if you have any questions about solar before you take the plunge give us a shout at 1-866-976-3749 or simply drop us a message below with your questions.
Author: Derek Wilson