High Efficiency Solar homes appreciate in value faster than comparative, conventional homes 1
$163,629 $227,592 $ gain in property value (mean) 26% 42% Percentage of $ gain in property value (mean) 13%-35% 6%-56% Range of percentage $ gain in propery value $208,410, owned 24 mos. $309,505, PV, owned 14 mos. High-end of gain 17-25 mos. 10-29 mos. Length of ownership (range in mos.) 21.8 mos. 18.7 mos. Length of ownership before resale (mean in mos.) Homes in Comparison Community Homes in SheaHomes Community Variable
Solar electric systems increase property value by decreasing utility operating costs. Appraisal Journal found that a home’s value is increased $20,000 for every $1,000 reduction in annual operating costs from energy efficiency.
Sources: Appraisal Journal, Oct 1998; NorCal Solar Energy Resource Guide, Oct 2005, “Payback and other Financial Tests for Solar in your home”, Author: Andy Black. Wells Fargo Bank
Another study found that solar additions to existing homes nets higher rate of return
Source: Business 2.0 , November 2006 1)National average, 2)Average cost for 2,000 sq/ft home, 3) California Incentives $15,000 Rebates and tax credits 3 $9,900 Utility savings (5 years) $2,450 -$3,942 Payoff $22,500 $39,920 Home value increase $45,000 2 $43,862 1 Average Cost Solar Energy System Kitchen Remodel
In a home, for every $1 in annual energy savings created, the value of the home appreciates by $20
Wells Fargo Bank
Value Appreciation Payback Model™ Assumed current power rate: $.10 per kW/h Energy Inflation assumption: 5% Annually (Conservative) Property Appreciation assumption: $20 increase for every $1 annual energy savings Estimated System Payback, as proposed: 3 to 5 years For the 2,700 kw/h Solar Water and 2 kw PV examples, previous slides--~$8,544 installed after incentives.