There are plenty of reasons to switch to solar: solar saves you money by generating the energy you consume right from your rooftop. Solar helps keep the environment clean by reducing your dependence on fossil fuels. Solar helps you adhere to changing regulations. However, one people don’t often consider is that solar is also a great investment in your home—it directly increases your home’s value and makes it more appealing to buyers!
However, homebuyers in different areas across the country all have different priorities, and different factors make different states better than others when it comes to the value that solar adds to your home. A recent survey by real estate giant Zillow sought to figure out what states’ homeowners saw the largest increase in home value from installing solar. Let’s take a look at the top ten.
1. New Jersey – 9.9%
When it comes to the winner, there really was no contest; New Jersey left the competition in the dust! With an aggressive renewable energy portfolio and numerous incentives, an eco-conscious populous, expensive energy prices, and high property values, it’s easy to see how this investment could see such a tremendous return. Median home value increases reflect that both in percentage and in total dollar value—the average solar premium increase is an incredible $32,281!
2. Pennsylvania – 4.9%
Much like their North Carolina counterparts to the south (who we will see later on this list), Pennsylvania also sees pretty good percentage increases compared to the other 50 states in the nation—better than all but one! With an average increase of 4.9%, the median home sees saw a value increase of just over $8,500 when solar was added.
3. North Carolina – 4.8%
The biggest influence over North Carolina’s solar market is perhaps one of, if not the single best utility rebate available anywhere in the country: 60 cents per watt. At that rate, the average homeowner could save thousands on the cost of switching to solar, and that’s fueled numerous homeowners to make the investment. The increase in home value helps too: the median home saw an increase of just under $9,000.
4. Louisiana – 4.9%
Solar Power Rocks ranked Louisiana 49th out of 50 states when it came to great places to switch to solar—not exactly great. However, they still make this list due to their generally sunny climate and fairly low home values. They also have a little secret going their way: a solar rebate of 60 cents per watt for solar installations. That alone sees homeowners save thousands on their investment, plus enjoy a median solar premium increase of just over $7,000.
5. Washington – 4.1%
Washington doesn’t enjoy particularly high energy prices, and most people would imagine the somewhat wet climate wouldn’t exactly be conducive to solar being a great investment. However, strong benefits like net metering and sales tax exemption have boosted their solar market. Plus, the average state resident is passionate about environmental causes, which is quickly making solar popular with home buyers. In fact, the median home saw a solar premium increase of over $15,900.
6. Florida – 4.0%
Florida doesn’t really have many government-provided incentives compared to several others on this list, but strong net metering laws are beneficial, and really help accentuate the benefit that is the state’s climate. There’s a reason they call it the Sunshine State: well over 300 days of bright sunlight per year Plus the premium value increase of just under $9,500 is appealing as well.
7. Hawaii – 4.0%
Hawaii not only boasts some of the most expensive land values in the entire United States but also has the highest energy prices you’ll find anywhere, including across the entire mainland: 30 cents per kilowatt-hour! Those factors combined to not only provide a good percentage value increase, but a good one in pure dollars as well: the median property saw a premium increase of over $24,000!
8. Maryland – 3.8%
Maryland also has some pretty aggressive renewable energy laws and available incentives, which is great for homeowners looking to make the switch. Plus the proximity to Washington D.C. pushes land values up. All of this means the median-valued home saw an increase of just under $11,000 from installing solar!
9. New York – 3.6%
New York’s aggressive renewable energy portfolio and plentiful incentives make solar a great investment for just about anyone. Plus with the nation’s 7th highest energy prices making solar an even more attractive option, the median home saw an average solar premium increase of just under $11,000!
10. South Carolina – 3.5%
South Carolina is slowly starting to emerge as a great solar market, largely due to the fact that the state’s residents pay some of the highest energy premiums in the country. That makes solar a hot commodity for buyers, and as a result, the median home saw a premium increase of just under $5,900.
Premium Fluctuations Within State Lines
However, there’s something else that needs to be taken into consideration, and that’s that statewide averages may not tell the whole story for your particular area. In fact, states themselves can fluctuate wildly from region to region. For example, in Florida, the median increase was around 4 percent when adding solar, but in the city of Orlando, that number rose to 4.6%. In California, the average increase was 3 percent, but in San Francisco, a very green-oriented city, solar is seen as an extremely desirable addition and adds 4.4% to the median home value.
New York has a similar but also sort-of opposite effect. The statewide median solar premium increase is 3.6%, but in New York City that value falls to just 1.8%. However, because land values are so high, that small increase still translates to just under $24,000, and that’s no small amount!
Find out how much you could save by switching to solar! Contact the experts from SunPower by Sea Bright Solar by calling (732) 253-4052 today!