Do Solar Panels Increase Home Value In Arizona

Do Solar Panels Increase Home Value in Arizona

Solar panels can increase your home’s value up to 2%-3% in Arizona. On the other hand, choosing to lease solar panels will decrease your home’s value. A leased solar system can lower a home’s value by 3%-8% in Phoenix, Arizona.

Do You Want To Sell Your Arizona Home With Solar Panels?

While installing purchased solar panels will run you around $25,000, several homeowners are being convinced to invest in leased solar panels. There is a major difference between the two, and that is the value impact on the house. You will see an increase in the value of your home when you purchase your solar panels. Whereas, if you lease these panels, you will not see the same increase. You will still be able to save on your electricity when you lease solar panels, you just won’t see the property value increase you would get if you purchased them.

Mike Orr, an analyst with W.P. Carey School of Arizona State University, made a review of the homes that are for sale with solar. The review was for The Arizona Republic and AZCentral said, “A leased solar power system can detract 3 to 8 percent from the value of a metro Phoenix home.” The estimates of the value increase are determined by comparing the house with and without solar panels. If you are a homeowner who is curious as to whether or not you will qualify for solar, then know that you will qualify for leasing solar panels. You could be looking at hundreds of dollars a month with leased solar. The buyer is left with the decision of whether the purchase is or isn’t worth it. This can cause the interest to decrease from the potential buyers. These homes, with the leased solar, tend to sell for less money. They also have a habit of sitting on the market for a longer period.

Some sources claim the evidence is needed to be presented that your electricity bill is being lowered with solar panels, comparing that to the bills of the other homes in the same area.

Your Appraisal Value Does NOT Include Lease Solar Panels

The requirements for your home’s appraisal value were updated by Fannie Mae, this resulted in a decrease of value for homes with leased solar. These panels may not be part of the appraisal value. Knowing this, there are still about 75% of Phoenix, Arizona homes that lease solar panels. One of the main reasons for this is the lower cost of installation for leasing.

Is the Increase in Value of my Home Worth Purchasing Solar Panels?

Put simply, yes. You should consider purchasing solar panels if you intend to increase the value of your home. In Arizona, the home’s value could see an increase of almost 3% with the purchase of solar.

What do you mean by ‘Purchased Solar?’

Purchased solar is when you obtain solar panels with cash or financing them through a lender.

What do you mean by ‘Leased Solar?’

You are paying monthly electric bills to the solar company that technically owns your panels.

Is there an increase in the value of solar panels in Arizona?

The value of your home is impacted by solar panels, depending on whether you lease or buy. If you buy your solar panels, you are going to see an increase in value. Leasing them will lead to a decrease.

By how much is the property value increased with solar?

According to Zillow, the median home value in Arizona is $252,900. Assuming solar increases your home value by 3%; your total property value increase would be about $7,587.

Can Solar Panels negatively impact your resale value?

The only way solar panels will have a negative reaction to your property’s resale value is if you lease them.

Solar Fix AZ Offers Solar Panel Removal & Reinstall in Phoenix, AZ

Solar Fix AZ offers solar panel repair, solar panel replacement, solar panel inspections, solar reports, and solar panel removal and reinstall. Get a free solar panel estimate in Phoenix, AZ or surrounding areas by getting in touch with Solar Fix AZ today.