As a real estate agent, staying up-to-date with trends that impact property values is essential. In recent years, solar panels have been gaining traction as more homeowners shift toward sustainable living. While solar panels come with plenty of perks, they also have some downsides, just like any big home investment. So, let’s dive into the pros and cons of solar panels from a real estate perspective.
The Pros of Solar Panels
Saving Money in the Long Run
Sure, solar panels can be pricey upfront (more on that later), but they’re all about long-term savings. Since they reduce your need for electricity from the grid, they cut down those annoying power bills. If you live in a place like North Carolina, you know how frustrating those Duke Energy bills can be! With solar panels, you’re harnessing energy straight from the sun—free and plentiful.
While you might not cover 100% of your energy needs with solar panels, they can still save you between $100 and $150 a month. Over the 25-30 year lifespan of your system, that could translate into $25,000-$33,000 in savings. Plus, don’t forget about those helpful government incentives. There are tax credits and rebates available that can make solar panels even more affordable.
Boost Your Home’s Value
Homes with solar panels often sell for more than homes without. Buyers love the idea of long-term energy savings. In fact, a Zillow study showed that homes with solar setups sold for about 4.1% more than comparable homes without them.
However, don’t rush into adding solar panels just to boost your property value. If you sell too soon after installation, you might not make your money back, even with the increase in home value. It’s all about crunching the numbers and planning ahead.
Energy Independence
One of the coolest things about solar panels is the potential to go “off-grid.” Pair them with a home battery, and you can power your home even when the sun’s down or during power outages. While creating a totally self-sufficient home takes a bit more planning (and cash), the flexibility is a huge selling point for potential buyers. Plus, solar panels can help reduce your home’s carbon footprint—a win for eco-conscious buyers.
The Cons of Solar Panels
High Initial Costs
Let’s be real—the upfront cost of solar panels can be a major hurdle for many homeowners. A typical system can range anywhere from $18,000 to $45,000 before tax credits. And while they save money in the long term, those initial numbers can feel overwhelming.
And it’s not just a one-time expense. You’ll need to factor in maintenance fees, insurance premiums, and the potential for roof repairs. If you’re considering solar panels, be sure to get several quotes to understand the full cost.
Impact on Aesthetics and Structure
While some love the look of solar panels, others feel they mess with their home’s aesthetic. In neighborhoods with historic homes, for example, modern solar panels can stick out.
Beyond looks, there’s also the issue of roof damage. Installing solar panels means drilling into your roof, and if not done correctly, that could lead to leaks or other issues. Buyers might hesitate if they’re worried about the long-term effects on the roof’s integrity.
Long-Term Commitment
When you invest in solar panels, you’re committing to your home for the long haul. It can take several years to break even, so if you move before then, you could end up losing money on your investment. The key is to do the math and figure out how long you’ll need to stay put to see a return. Factor in the 4.1% property value boost, but make sure it aligns with your timeline.
Should You Go Solar?
Solar panels offer tons of benefits, from long-term savings to a boost in property value. But they also have their downsides, like high upfront costs and potential aesthetic concerns. Ultimately, the decision to install solar panels comes down to your unique situation—your budget, your home, and your future plans.
If you’re weighing the pros and cons of solar panels, Lauren Fours is here to help. Reach out for advice, and to figure out the best move for you and your home!