Discover the Benefits of Going Solar with Panels
Q: I am a homeowner in my early 70s, and we purchased our current home a little over a year ago in a rural area of Wisconsin. We are considering a switch to solar power to better control our electric bills. The tax and rebate incentives available make this upgrade seem financially attractive at the moment.
Do solar panel installations add value to homes? We’ve received a couple of quotes, and it seems like the payback period would be around 11 years. Are there any other factors we should consider?
A: Many homeowners are contemplating the switch to solar energy, especially with the potential for tax benefits. It’s great that you’re looking into this for your home. However, timing is a crucial factor to consider. You didn’t mention in your email whether you plan to stay in your current home for at least the next 11 years. Your calculations indicate that if you remain for 11 more years, you’ll break even, meaning the savings from the solar panel installation will offset the initial cost.
Let’s assume you decide to proceed with the solar panel installation. You might then list your home at a higher price to account for the investment in solar panels. However, if your home is the only one on the market with solar panels, and there are 20 other similar homes for sale without solar, potential buyers may not prioritize the presence of solar panels. Many buyers might prefer to pay less for a home and handle higher utility bills separately.
Conversely, if most homes in your area have solar panels, and you choose not to install them, it could negatively impact your ability to sell your home for a competitive price.
Your local real estate agents can provide valuable insights. Consult with several agents in your area and inquire about the influence of solar panels on home values. If they inform you that buyers actively seek homes with solar panels and are willing to pay a premium for them, you may be able to recover your investment more fully. Armed with information from these real estate professionals, you can make a well-informed decision.
Additionally, keep in mind the condition of your roof before investing in solar panels. If your roof is in poor shape or nearing the end of its lifespan, it might be wise to delay the installation. Removing and reinstalling solar panels can be expensive, so ensure your roof is in good condition before proceeding. If your roof has about 10 years of life left, you might want to wait before installing solar panels to avoid potential complications.
Finally, consider the time and effort, not just the cost, required to find and contract with a solar panel installation company. Decide whether you prefer leasing or buying the system and understand the maintenance costs during ownership and the implications if you sell the home. In the case of a leased system, the solar panel company may require a transfer fee if you sell the property.