Monday, April 18, 2011

Adding Solar Increases the Value of Your Home

According to the “Evidence of Rational Market Valuations for Home Energy Efficiency,” Rick Nevin, Christopher Bender, and Heather Gazan, Oct 1999, a home’s value is increased by $20,000 for every $1,000 reduction in annual operating costs from energy efficiency.

Using my home PV system for example, I expect to save approximately $550 per year on my electric bills. At 20:1, that would mean that I can expect to sell my house for $11,000 more now that I have solar. That's $3,600 more than what it cost me to install my PV system ($7,400 after the Federal ITC and rebates from my utility for my 2.28KW DC system). I'll get to reap the monthly savings while I live in my house and if I sell my home, I will get some, all or more of the cost back in the sale price.

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