The facts are in, again. Rooftop solar panels continue to add value to homes across the United States including Florida. According to a recent study commissioned by Lawrence Berkeley Labs and documented in a new report entitled, “Appraising Into The Sun: Six-State Solar Home Paired-Sale Analysis”, rooftop solar adds value to homes.
As part of the research study, seven appraisers were selected to analyze data, in order to provide appraisers, mortgage underwriters and sellers with a value determination when homes are being sold with solar panels on them. They were to take into account the real estate multiple listing service, the market itself and PV sales. The rapid growth of home solar panels is resulting in more real estate transactions where homes with solar panels are being sold.
Florida solar homes showed a price premium of 6.36% of the sales price or $3.45/watt of the installed PV system. The price at the time of the purchase of the PV system would have been approximately $3.55/watt after incentives based on average installed costs at the time. The Florida systems analyzed were also relatively new.
“These results will benefit appraisers, real estate agents, and mortgage lenders who increasingly encounter PV homes and need to understand the factors that contribute to, and detract from, market value,” says study co-author Ben Hoen, a researcher in the Energy Technologies Area of Berkeley Lab.
The end result in all of the markets was conclusive that solar homes with PV were consistently sold at a premium to those in the same market, with similar real estate profiles, that did not have solar. This provides conclusive evidence that the real estate market is responding to the value which home solar brings to the overall financial and environmental profile of home ownership. You can access the full report and presentation slides here.