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
we are considering solar for our house and your article cleared up some thing’s for me. but also still has us wondering if its the right move. maybe you can answer a few questions for me if possible
HI Elax sorry for the delay in responding we had some glitches in our commenting program. It’s working now. Please message me at michael@taylorrealtygroup.net or call 303-669-2744 I’m happy to provide any assistance or guidance you need!
Hi Mike,
I live in the DTC area and have been considering getting solar panels. I have been talking Vivent Solar and have just started the process of getting a system installed. They quoted me for a 9kW system for my home at $38,000 and a 25 yr warranty and a 20 yr loan. A couple of my main concerns are:
1) How much will this increase the value of my home (I plan on moving sometime around 2020)
2) Will buyers be willing to pay more for the home or do a bill swap (You answered No above which is a big concern for me)
3) The seller said that Xcel will give me a 1 to 1 ratio of every kW hour i go over and will keep a reserve for me. This is great but what if I never end up needing it.
I like the idea of being off grid but after calculating everything I will be paying over $100 a month more in energy bills which does not make sense to me unless it increases my home value. So overall I just wanted to get your take on solar and see if anything you stated above has changed. I think after typing this out it doesn’t make since for me to install this system in a home I will most likely be selling in a few years.
Thank you for your time,
Jacob
HI Jacob my apologies for the delay in responding. We are updating our site now and found the commenting system was glitchy in the past. I will still reply here should you still be looking for guidance. Solar will not increase the value of your home from what I have seen. Buyers simply are not willing to pay MORE for a home with solar. If there are 2 identical homes and one has lower utility bills due to solar, a buyer may “prefer” that one over the other but won’t pay a premium for it. This is based on what I have seen working both on the buyer and listing side. Solar is a long term investment if being “off grid” is important to you, and it will provide savings in the long term once they system is paid off. Really read through the solar lease terms. Often on selling your home the new buyer has to “qualify” for the system, there are fees to pay upon transfer, and also if you ever need to replace your roof, there can be costly fees for removal/reinstall of the solar. Sometimes insurance pays this but I have seen them deny or renegotiate payment for this as well. However else I can help let me know.