Solar Systems as an Investment
The demand for more efficient homes with renewable energy systems will likely remain a healthy trend further increasing the future value of your solar home.
A 1998 “Appraisal Journal (Cited by Wells Fargo) sited that for every $1,000 saved in annual utility expenditures a home’s value increases by $20,000. For every dollar saved in utility costs becomes available to be spent on a higher mortgage payment without a net increase in living expenses.
The table below from an American Solar Energy Society (ASES) study shows the approximate cost for a 100% energy consumption system in comparison to the increased appraisal value. This example compares a home with utility bills averaging $190 per month, or a total of $2,280 in annual utility costs.
| Solar Panel System Size |
Final Net Cost After 30% Solar Tax Credit * |
Appraisal Equity Increase @ 20:1 |
% Cost Recovered |
| 2.6 kW | $14,560 | $17,600 | 121% |
| 5.2 kW | $29,120 | $44,200 | 152% |
| 7.8 kW | $43,680 | $72,600 | 166% |
* Net cost calculated at rate of $8/W less 30% =$5.6/W installed