Boost Your Property Value: How Solar Panels Can Lead to a Lucrative Home Sale?
In today’s world, there is a growing focus on embracing sustainable practices to reduce environmental impact. And in this quest, solar panels are one of the best options for renewable energy sources, which in turn could slash your monthly electric expenses.
However, the initial installation costs of solar panels are significantly high, discouraging many people from opting for them at their new homes in Kelowna. Along with it, the most crucial question that lingers is whether or not solar panels can increase a property’s overall valuation.
In this blog, we have discussed some common FAQs that will steer clear of homeowner’s queries about solar panels.
Common FAQs About Solar Panels
Can Solar Panels Increase Your Property’s Valuation?
Research and studies indicate that installing new and modernized solar panels can add up to 3- 4% to the overall valuation of your property. For instance, if your property is valued at, say $200,000, installing solar panels can easily increase the valuation by $6,000 to $8,000.
Also, along with an increase in property valuation, solar panel-installed homes tend to sell out quicker when compared to others.
What’s The Reason Behind Solar Panels Affecting A Property’s Valuation?
The world is growing to be more environment conscious with each passing day. This has resulted in people switching to greener alternatives to reduce their carbon footprint. Solar energy, being a natural and renewable energy source, is therefore a much-coveted thing for homeowners nowadays. And this substantial increase in demand for solar panels stands as a major reason behind affecting a property’s overall valuation.
What Factors Affect The Valuation Of Solar-Panelled Properties
The presence of solar panels in Kelowna new homes for sale isn’t the only deciding factor behind the property’s valuation. Several other factors influence the value of a property in Kelowna which include the following-
- Location of the property
The location of your property is by far one of the most important factors that causes the rate charts of a property to fluctuate heavily. A property located in a posh area will demand higher prices than the ones located in the suburbs,
- Average electricity rates
The average electricity rate is another decisive factor behind the valuation of solar panel-installed properties. Installing solar panels can cut down your electricity bill costs, thereby making it a convenient option for potential buyers. This translates to an increase in the market appeal of the property, thereby fetching a higher valuation for the property.
- Whether the homeowner owns the solar panels or has leased them
If the previous homeowner has bought the solar panels, a buyer can easily transfer it to their name. But, if the previous owner has leased the panels, you may need to discuss it with the solar company, and go through the necessary paperwork to establish your ownership. Staying aware of the ownership rights is recommended to steer clear of confusion or any further legal issues.
- The overall condition of the installed solar panel system
The overall condition of the solar panel system is an impactful element that affects the total valuation of a property. Remember that older solar panels are somewhat vulnerable to depreciation. Also, before buying solar-panelled properties from Kelowna luxury home builders, ensure that the entire system is working effectively and optimally. That’s because not only does it affect the total valuation of the property, but it also impacts the overall efficiency, lifespan, and functionality of the system.
Do Solar Panels Impact Property Taxes?
Yes, they do indeed! Since elements like solar panels are useful additions and meant to enhance the property’s functionality as well as the valuation, they might also be responsible behind the increased taxation amount. However, state-wise regulations vary largely, and homeowners might receive exemptions or incentives in order to negate the potential tax increase. Therefore, before buying a property with solar panels, stay informed about the local tax laws to determine the potential increase in taxes.
Does Bigger Solar Panels Increase Your Home Value?
Many people might think that the bigger the size of the solar panels, the higher will be the property costs. But, that’s far from the truth! In reality, there are no proven statistics that can correlate the size of solar panels to an increased property value. So, discuss with your Kelowna contractor and opt for the right panel sizes that can generate just the right amount of energy that is required for your home.
To Conclude
If you consider the opinion of professional Kelowna home builders like Bellamy Homes, solar panels can have a major impact on the overall valuation of your property. With the increase in demand for greener and more sustainable alternatives, solar panels happen to be the new renewable energy superheroes, which is helping to promote sustainable practices for a better and greener future.