If you’re restoring a home or replacing a roof—this is a great time to go solar. According to Lawrence Berkeley National Laboratory, a solar system will increase home value. Here are several things you might not have known about upgrading to a solar roof.
Solar Increases Home Values an Average of $15,000
Let’s say you’re upgrading a single family home in Bakersfield. Many of these homes have ideal roofs and the solar potential is high. The Berkeley Lab study put the average value increase for adding solar at $4 per Watt (/W). For California homes, it was $1.10/W higher, for a total average of $5.10/W of installed solar power. This is because California homes are more expensive and California incomes are higher than the U.S. average, so prices (and premiums) are higher.
This means, if you install an average-sized 3.6kW system, you’ll add more than $18,000 to your home’s value. The bigger the system, the greater the added value and higher demand from buyers.
The Berkeley study did not cover leased panels owned by third parties. The data is still inconclusive in such cases, but in general if you lease your panels, you’ll gain the benefits of lowered electric bills and greenhouse gas emissions, but not ownership.
You Can Enhance Your Energy Savings With Upgrades
Solar panels aren’t the only option for energy/money-saving home improvements. Simply adding energy storage when you go solar can yield significant savings. With battery backup, you can charge up at night, when electricity prices are lowest for later use, instead of buying high-priced electricity from SCE during the middle of the day.
Another way to increase energy savings with upgrades is to replace inefficient power drains. For example, if you have a pool with an old single-speed swimming pool pump, it’s likely the biggest power consumer in your household. Replacing it with a variable-speed pump will make a quick difference in your electric bills. The added value of these home improvements not as clearly-quantified as with solar panels or shingles, but are definitely worth considering as part of your overall renovation.
Home Improvements May Qualify for Incentives
Regardless of your home improvement decision, be sure to check for any energy efficiency rebates or perks you qualify for. California is committed to being at the forefront of the sustainability movement, and has implemented incentives like the Solar Incentive Program (SIP) and the Self-Generation Incentive Program (GSIP) to offer rebates to state homeowners. Federal tax credits on your net system price and property-assessed clean energy (PACE) financing are also available, and allow you to pay for your system as part of your property tax bill.
Kern Solar Group would be happy to help you learn about them and your eligibility for each. If you have any questions about the cost or other aspects of going solar, we can answer them. Just let us know.