Do Solar Panels Increase Home Value in Arizona?

Home sales are set to rise come 2025 (National Association of Realtors). Are you prepared to stand out from the competition while also going green?

Every year, homeowners look for ways to improve their space while adhering to a budget. Solar panels are the perfect blend of both worlds, offering a wonderful home investment while also helping to reduce monthly energy bills.

However, a common question is, “Do solar panels increase home value?”

This article explains the ins and outs of solar panels, how they affect a home’s resale value, and some of the benefits of installing them today.

Why Solar Panels Increase Home Value

Solar energy benefits include a reduced monthly electricity bill. This alone makes homes with solar panels more desirable, adding to their value. Zillow explains that homes with solar panels sell for 4.1% more than other homes.

Prospective home buyers may appreciate home solar installation, especially if they’re looking for ways to go green while reducing their monthly budget. Instead of worrying about what their utility bills will be, these homeowners can put the money they saved on electricity bills into something more useful.

According to the National Association of Realtors, 2023 saw the sale of 4,090,000 homes, not including new construction. If you’re looking for a property value increase while also helping your home stand out in a saturated market, then solar panels are an optimal choice for any homeowner. Just be sure to work with a trusted residential solar panel installer in Arizona.

How to Get the Most Bang for Your Buck

Once you decide to invest in eco-friendly home upgrades, it’s important to do your research to benefit the most from your investment, especially when selling your home. By gathering this information, you can show your realtor and prospective homebuyers just how beneficial your solar panels are.

For starters, you should:

Research the average energy bills in your area
Determine how much energy your home uses monthly
Make a note of local energy rates

This way you can show prospective homebuyers how solar panels can save money should they purchase your home.

Tax Breaks to Help Save Money

Another selling point is the tax breaks that come with installing solar panels, helping homeowners to further save money and make their property that much more desirable to homebuyers.

This federal solar tax credit, also known as the investment tax credit (ITC) lets homeowners claim on their federal tax bill 30% of their solar energy system cost. Should a solar system cost $15,000 to install, they’re eligible for a $4,500 credit to help reduce their overall taxes.

The great thing about this tax credit is that it’s in effect until 2033. After that, the credit becomes 26%. Another decrease occurs in 2034, where the tax break becomes 22%, and in 2025, the tax credit is set to be 0%.

Benefits of Energy-Efficient Homes and Solar Panels

Solar panels have become increasingly popular, and for good reason. In 2022, 3.9 million American homes installed solar power systems (National Renewable Energy Laboratory). Since these systems are growing in popularity, it’s no surprise that they’re becoming more affordable, with tax breaks and solar loans making it easier to install solar panels.

Here are more benefits of solar panels that will help increase home value.

No Power? No Problem

It doesn’t matter if you live somewhere with an unsteady power grid or if you get the occasional blackout, solar panels can keep the power on no matter what. This means that a disruption in power doesn’t have to ruin your day, as these solar energy systems have backup battery storage that offers homeowners continuous power.

This offers peace of mind, especially during inclement weather or for anyone with small children or medical devices, who can’t be without power. It’s important to note that battery storage is an add-on when installing solar panels, but makes a huge difference during a power outage. These batteries can provide power for 24 hours, proving to be an excellent investment.

Solar Works All Year Long

Solar panels need sunshine to work, making them ideal in states like Arizona. Also, solar panels are great in the winter when the days are shorter, seeing as they can still harness enough energy from the sun. Solar panels don’t need long summer days to work, making them perfect in any climate or location.

Reduce Carbon Emissions With Solar Panels

Since solar energy is clean energy, homeowners can help reduce carbon emissions when working with a trusted solar panel installer. When you install solar panels, you’re working to prevent environmental damage, commonly associated with the extraction of fossil fuels. This includes extremely dangerous fracking sites that can seriously harm:

Humans
Animals
The environment

Fortunately, solar panels are an excellent workaround for anyone looking to reduce their carbon footprint. Solar panels also rely on little — if any — water, making them ideal for warm climates prone to droughts and also perfect for anyone looking to avoid power plants that rely on steam turbines.

Solar Panels Are a Low Maintenance Investment

Homeowners looking for low-maintenance upgrades to their house will love solar panels, as they’re easy to maintain. Unlike other forms of energy, solar panels don’t have moving parts. This means there’s less to replace and fewer repairs to pay for.

Solar panels just need to be kept clean by doing the following:

Remove dirt and debris at least twice a year
Check that critters aren’t nesting beneath them
If you notice any wear or tear, contact a professional immediately

Don’t hesitate to have your solar panel installer complete routine inspections.