Despite so much emphasis on alternate sources of energy like solar energy, people still consider it expensive. They think it is a large up-front expense. And when it is about installing it on a rental property, then it becomes furthermore tough decision.
But experts say that if you are able to attract better tenants and reduce utility costs by installing solar panels for rental property, then it is a profitable proposition. The panels will return more than what you pay for the initial price over the long term.
Solar panels are among the best sources of renewable sources of energy. But are they useful in improving the value of the rental property? The same thought must be disturbing your mind. Let us understand it in this blog.
Do they add up to the value?
Indeed, they do. Experts say that renter solar panels lower the electricity bill and other utility expenses. Thus, you will surely attract better tenants. Plus, it is a steady renewable energy source. Therefore, you can see a significant increase in the value.
The panels are beneficial for both tenants as well as property owners. It is a win-win situation.
But if we say that the value increases, then the question is up to what extent? Let’s try to figure out some hard facts based on the data.
How Much Do Solar Panels Increase Property Value?
According to the sources that conduct research on the effectiveness of solar for tenant, when you save one dollar in energy bills, you add 20 dollars to the rental property’s value. Well, it is a ballpark figure and calculation based on average values. There could be a variation based on various aspects like location and size of the home, number of solar panels installed, type of solar panels, and so on. Studies show that each KW of solar power installed on the property will increase the value by 6000 dollars or more. It means that when you add 5KW of landlord solar panels, then you will add around 30K dollars to the resale value of a one-family house. If you consider landlord solar rebate, then the value increases further.
You need to consider the cost of panels while calculating. Along with installing solar panels, there are many other types of renovations that increase your property value and attract new tenants.
Therefore, do not think much. Call an expert today and get the best panels installed.