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.
|Final Net Cost After
30% Solar Tax Credit *
Increase @ 20:1
|% Cost Recovered|
* Net cost calculated at rate of $8/W less 30% =$5.6/W installed