A new report published by Zillow found that homes with residential solar systems sell for 4.1% more than their non-solar counterparts.
A common if disingenuous argument against the adoption of residential solar is that not only can systems be expensive, but that expense is a lost cause because solar systems devalue homes and the homes around them. Directly contradicting this, Zillow has released a report stating that homes with solar panels sell for 4.1% more than their generation-naked counterparts.
The premium was calculated by comparing sale prices and listings from March 1, 2018 to February 28, 2019, controlling for bedrooms, bathrooms, square footage and location.
This 4.1% average equates to $9,274 on average nationally, though the monetary mark is much more regionally dependent. For example, Riverside, California’s price premium average is 2.7%, almost 1/3 lower than the national average, however that 2.7% represents $9,926, obviously higher than the average and reflective of higher property costs in California.
The mark that really stands out both as a percentage and a numerical value is New York City. Solar homes in the Big Apple represent a bigger differential national average at 5.4%, which, and it’s well known how expensive property is in the city, translates into $23,989 numerically.
The Zillow report outlines the reasoning for this sale premium is a mixture of investment and taste. On the investment front, some homeowners are willing to pay more for a house with a system, rather than buying a different house and then working out the logistics of installing a system and paying for the materials and installation, which in some places could be more than the pre-installed premium. In other cases, solar systems aren’t the only features that contribute to this premium, as other luxuries like heated floors factor in.
With these variables considered, some buyers just want the system purely to see relief on their electrical bills if they know that they’re high energy users or because they are environmentally conscious.