Will installing solar panels increase my homes re-sale value in Denver Colorado? How will installing solar panels affect selling my home in Denver Colorado? I get these questions a lot and thought I would share what I have found from the real estate perspective. The largest challenge I see when trying to re-coupe the cost of solar comes from the fact that most solar systems are paid for over a long period of time (sometimes 30 years like a mortgage). Some are also leased. Either way, the money owed needs to be transferred to the buyer at closing (which buyers hardly ever agree to when negotiating an offer) or the seller needs to pay it off at settlement, thus coming out of their net proceeds.
Bottom line: Home buyers love the idea of solar: The potential cost savings, feeling of energy independence, and pride to be environmentally friendly. BUT…often times are not willing to pay a higher sales price to offset this expense so ultimately the seller eats the cost. The utility savings over time often isn’t often enough to persuade a buyer to increase the sales price. To determine if it makes sense for your situation ask yourself these questions:
1. Why do I want to install solar? (Save money, independent of the “grid” in a major catastrophe, help environment, etc)
2. How long do you plan to own your home?
3. Have you looked at a real cost savings comparison and when you will break even? (Calculate your Average Usage times the $$/watt for both scenarios. Then add in the cost of the solar and determine WHEN you will break even and start realizing a cost savings). See if it makes sense. If you will be selling/moving before your break even then you won’t save money. It still may be the right choice if you are doing it for other reasons that are important to you, but you in fact are NOT saving money.
Still not sure? Give me a shout and I’m happy to discuss your home and if it makes sense to add solar. – Mike