Does Solar Increase the Value of Your Home?

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As a homeowner, it makes sense that you might be wondering about how solar power impacts the value of your property. If you are going to invest money into home renovations, then you need to be sure that you will get the best return on your investment. Is solar power one of the things that you should be spending your money on?

The Value of Solar Power on a Home

The value of a property with solar power depends on several factors. In many situations, the solar system is financed, which means that the appraiser is not going to be able to give you any value for that system. Since the money is still owed, it could potentially be a problem for the buyer.

If the solar power system is paid in full, then it can have a positive impact on the value of the property. But, you need to think of it similar to a pool: you can spend a lot of money on a custom pool, but you will only receive a portion of the investment back when you sell the property in the future. For example, a $25,000 solar power system might boost your home value by $10,000 or $15,000.

Paying Off the System in Escrow

One other option to consider is to pay off the financed system in escrow so that you can get the most value out of the home. To use this strategy, a payoff would need to be ordered from the company who holds the financing. That company would be paid in full out of the proceeds of the sale, making the system free and clear when the transaction occurs.

Do you have other questions about selling a home with a solar power system? You are always welcome to contact me for professional advice from an experienced real estate agent. I can help you find the best ways to maximize your equity and improve the outcome when you are buying or selling a home.

Call, text, or email me to learn more. I am always here to help with your real estate transactions: (951) 473-0390 or [email protected]