A major home improvement upgrade has impact on the value of the house. How much? Ah grasshopper, we start to go off into the speculative ethers. Nonetheless, there is data.
The best I could find is a detailed study by the Appraisal Institute in cooperation with the Colorado Energy Office, in the Denver CO area. Sales through 2013. They studied 30 sales, with good detailed data on 22 of them. Here’s the conclusions.
“The case studies, as well as general market data, support the conclusions that PV systems (that are owned) typically increase market value and almost always decrease marketing time.” “22 of 30 case studies indicated PV systems contributed $1,400 to $2,600 per kW to market value.”
Appraisal Institute Solar Impact on Home Values
Appraisal Institute Solar Energy Systems Boost Home Values
Do the math, a 10.4 Kw system, let’s use $2,000/Kw as middle of the road…
Ah, but a single study? There is another, less applicable IMHO because it is based on the California real estate market, and 2-10 year old data.
National Bureau of Economic Research | Sample of homes in San Diego and Sacramento CA – Sales from 2003-2011, and the source document is behind a proprietary wall, but Forbes reported it: How Much Do Solar Panels Boost Home Sale Prices?
Bottom line they were reporting a $4-5 PER WATT premium. That would calculate out conservatively to a $40,000 increase in the sale value of my house. Interesting, but could be affected by inflated CA home values.
Taking another approach… if you reduce utility bills, what impact does that have? It turns out there is very good data for this, huge samples of 40-60,000 sales nationwide, during the 1990s. Comparing essentially identical houses, but one is more energy efficient so has lower utility bills. Perhaps they replaced windows, for example.The ratio in this study ranged from an 18:1 to 23:1 return. Meaning if you reduce your utility bill by $1, the value of your house goes up $18-23. Let’s use our
conservative $1500/year reduction in the electric bill. That figures to a value of $30,000.
So I can’t tell you for sure, but…