Does solar Increase the value of your home?
That’s a tricky question because not a lot of research has been done on the matter, especially about solar panels Canada. In a recent study in the US conducted by Zillow it found solar panels could potentially increase the value of a home by up to 4.1% from comparable homes in the same area with no solar panels. This did vary by state and I would think the same would hold true for different parts of Canada’s solar market.
But now let’s look at the reasons why it logically would increase the value of the home…
Easier to mortgage
Electricity prices continue to rise year after year. If you’re paying $100/month now in electrical bills you might be paying $104 next year and $108 the year after that. And that is without increasing consumption. Lenders factor in debt service ratios and lending thresholds to determine if you can get a mortgage. Having an existing solar system on your house reduces the monthly electric bill down to just a fraction of that $100/month.
Less Monthly costs = Higher available mortgage!
As I said before, the price of electricity continues to rise! Solar panels will exist on your roof for at least 20 years. If electricity prices rise 2% every year for those 20 years and you have solar you will have avoided $48 on every $100 you spend now on electricity in that 20th year.
It is pretty attractive to a buyer to know that their electric bill will be very low for the next 25-40 years!
Accessing Solar Rebates
Many governments provide programs for clean energy initiatives like solar panels. Efficiency PEI and Efficiency NS are the main channels to apply for government specific energy efficiency rebate programs in PEI and Nova Scotia, respectively. By using the rebates your home can still get the full value of the solar panels but you could save tons of money in the process.
Walking into a home with less bills!
Wouldn’t you like to walk into your new place and not have to worry about how much energy you use. As a new home owner it is great to know that one of the bills that is going to come in each month will be incredibly low. Solar panels producing electricity to power your baseboard heaters, lights, heat pumps, air conditioning and electric vehicles is a great addition. It is one less thing a homeowner has to worry about and that is very attractive.
Real Estate agents are now more educated in the value of Solar Panels
Agents know that solar panels are a great addition to a house. They add value by reducing the monthly costs of the home. To walk into a home that already has them on the roof means there is no extra work to be done either. The buyer simply just walks in and starts saving money!
So does getting solar panels improve the value of your home?
Absolutely. While there it is still a new concept to people and not everyone will want solar on their roof there is definitely a growing number of factors and people that desire solar on their home and will pay for it.
Images Source: https://sunly.ca/