Study: Buyers Willing to Pay Extra for Solar
January 16, 2015
A new study shows there is high demand among home buyers for solar energy homes, and they’re willing to pay more for an equipped home too.
The Growth of 'Green' in Sales:
Buyers are willing to pay, on average, about $15,000 for a standard 3.75 kW photovoltaic energy system on a home – or about $4 per watt of PV installed, according to a new study, “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes.” The finding was based on an analysis of buyers across states, housing types, and housing markets.
The study, conducted by multi-institutional research team consisting of university researchers and real estate appraisers, included an analysis of more than 22,000 home sales across eight states – nearly 4,000 of which contained PV systems. The home sale data used spanned 2002 to 2013.
As solar energy has increased in popularity, appraisers have been trying to figure out how to properly value the technology in a home sale. The Appraisal Institute has developed a Residential Green and Energy Efficient Addendum, which sets out to standardize some terms for lenders, appraisers, real estate professionals and home owners in green home marketing.
Meanwhile, more agencies are helping to foster the growth of solar panels. Late last year, SolarCity announced it was creating a new investment program with Bank of America Merrill Lynch to fund about $400 million in solar power projects in 2014 and 2015 to help thousands of home owners install solar panels with no up-front cost.
Source: “Solar Power: Will Home Owners Pay the Extra Costs?” HousingWire (Jan. 14, 2015)
Updated: November 23, 2020