what is the average amount of equity that my home can potentially gain if I install solar panels on it.?
I'm thinking about installing solar panels on my home but I'm curious to know what would be a ball park amount of equity my home could gain.
I am in Ontario, and I asked a real estate agent about that as I was seriously looking into adding this to my new home. Right now in my area, solar panels will not increase the value of the home. People are just not ready to pay extra for a house for this yet here, so if you are doing solar for resale, you will be loosing a good $20,000. Look into wind turbines…much more efficient, but a bet more expensive here.
as with all upgrades you do them for your benefit and they very seldom increase the value of a property with one exception in the uk the installation of a swimming pool actually decreases the value
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Comment by carol p — May 9, 2009 @ 12:35 pm
Depends on how many panels and how well the job is done.
Take a look at your monthly bills, If you pay $50.00 a month in delivery charges, and $20.00 month for hydro, solar will not help you unless you go 100% solar. and that is costly.
get written estimates. And crunch the numbers.
We are planing to build a new house 100% solar,(it's almost a mile off the road and running in hydro will be almost 100 K,) I've been looking into what your asking. every house is different
How much will your house raise in value???? depends on these and many other factors.
figure out how much you want to do, then the costs, then the saveings. Then mabe we can help get you an answer.
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Comment by dave.greg — May 9, 2009 @ 1:24 pm
The rule of thumb for adding value to your home is to take 20 years of the cost savings and them tack that on to the value of the house.
For example, if the Solar panels save you 300 / month, that would be 3600 a year. Times that by 20 years and you have 72K.
Plus, Right now there is a 30% Federal Tax credit (bottom line). Also, in many areas, the power utilities pay you rebates for installing them. In Calif. the rebate is currently $1.55 /watt. That plus the Federal Tax credit will account for roughly 40% of the cost. ROI usually now runs (depending on your usage) from 8 to 12 years.
You very rarely want to go with a 100% system, especially if your rates are tiered. With tiered power, the lower rates are actually cheaper than solar power ( factoring in the costs of the panels). We usually recommend a 50% system which actually saves them about 75% on their power bills. Phew got all that?
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I am a Solar and HVAC contractor
Comment by Keith — May 9, 2009 @ 1:53 pm
Yes, some would say take the annual savings and multiply it by 20. I agree with that assessment as "potential".
But as you know, the price that someone will actually pay for a home depends on a lot of things, and buyers are not always rational. A super-efficient home may have very low costs, but a buyer might still pay more for the energy-waster next door because it's cute. In some areas, solar panels are considered ugly, although it escapes me as to why.
Because of the irrational factors involved in assessing the value of solar, it probably will not allow you to take out a larger home equity loan, at least in today's market. If electricity goes up to $1 / kWh though, you bet your home will be worth more.
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Comment by roderick_young — May 9, 2009 @ 2:16 pm
I am in Ontario, and I asked a real estate agent about that as I was seriously looking into adding this to my new home. Right now in my area, solar panels will not increase the value of the home. People are just not ready to pay extra for a house for this yet here, so if you are doing solar for resale, you will be loosing a good $20,000. Look into wind turbines…much more efficient, but a bet more expensive here.
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Comment by pissy_old_lady — May 9, 2009 @ 2:43 pm