Does Solar Increase Home Value in Ohio? Data & Trends
How Solar Panels Impact Home Value
Installing solar panels on your Ohio home isn’t just about reducing or eliminating your electric bill—it can also increase your property’s resale value. Studies show that homes with solar tend to sell at a premium compared to non-solar homes, making solar a smart investment.
According to the U.S. Department of Energy, solar panels can raise a home’s value by $20 for every $1 in annual utility savings. On average, homes with solar sell for about 4.1% more than comparable homes without solar. This increase in value varies based on factors like system size, local electricity costs, and whether the homeowner owns or leases the system.
Solar Appeals to Homebuyers
Today's homebuyers prioritize energy efficiency, sustainability, and lower operating costs. A home with solar offers long-term savings, which makes it more attractive in a competitive housing market. In monetary terms, this can translate to a significant increase in home value. The U.S. Department of Energy has noted that a solar electric system can raise a home's property value by $20 for every $1 in annual utility savings.
In addition to owned solar systems, Power Purchase Agreements can also be appealing to buyers. While a power purchase agreement doesn't add equity to the home, it does provide an immediate financial benefit. Most power purchase agreements are transferable, meaning the new homeowner can take over the affordable solar rate plan. This is a major advantage since similar homes without solar could be stuck paying significantly higher utility rates.
What Determines Solar’s Impact on Home Value?
Several factors influence how much solar increases home value:
Ownership vs. Power Purchase Agreements: Owned solar systems add the most value, but PPAs still offer buyers predictable, lower-cost electricity compared to traditional utility rates.
Local Electricity Rates: The higher the local utility costs, the more attractive a home with solar becomes.
Environmental Awareness: As more buyers seek sustainable living options, homes with solar panels become increasingly desirable.
Whether you own your solar panels outright or have a Power Purchase Agreement, solar offers substantial financial benefits when selling your home. Buyers love the idea of lower energy costs, sustainability, and price stability, making solar a valuable feature in today’s real estate market.
If you're considering adding solar panels to your home or want to explore different solar options, Ohio Solar Initiative can help. Contact us today for a no cost solar report on your home and learn how to maximize your home's value while lowering your energy costs!
