Friday, February 11, 2011

Solar Increases Home Value

With little to no upfront cost, a SunRun solar power system increases your home value in two ways.

By upgrading your home to solar with SunRun, you enjoy a lower electric bill immediately, and can earn more on your investment if you ever sell your house. Your SunRun agreement is easily transferable to a new homeowner

A recent study by ICF Consulting concluded that saving $1,000 per year on energy costs adds $20,000 to a home's resale value. Because a homeowner's energy savings increase as electricity prices go up, the value of a home solar power system also appreciates over time.

According to the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy, a solar home will sell twice as fast as a home without solar panels – even in depressed markets. According to Shea Homes, the home resale value of California solar homes increased 55% while the home value of non-solar homes increased 45% during the same time period.

Lennar Homes and their partner SunPower demonstrated that home resale value of solar homes increase more quickly than non solar homes in early 2007. “Within eight communities that had homes without solar in Rocklin, CA, an average of 1.9 homes sold each month compared to a ninth community with solar homes which sold an average of 4.6 homes per month over the same time period.”

In another development, all 257 homes with solar in a San Francisco Bay Area development sold within a year of being put on the market – 2 years faster than planned. Plus, solar homes originally priced at $379,000-$499,000 had a home resale value for as much as $600,000.

New homebuilders are recognizing the importance of solar and reduced energy costs in home sale value and starting to put solar on new homes. Our recent partnership with Toll Brothers and PetersenDean provides new solar homes at The Preserve, a community of 90 luxury homes in California set to open in September 2010. The Preserve features solar energy as a standard feature. Homeowners have the choice to move into a brand new solar home and simply pay monthly for clean solar electricity, saving homeowners anywhere from $50 to $100 per month compared to those who opt out of solar. Based on the enthusiastic reaction of homebuyers at the Preserve, we expect to see more new homes communities built with solar.