The United States has seen a significant uptick in solar panel installations over the past few years. This rise in popularity is mostly thanks to falling solar equipment prices, generous federal tax incentives, and the many environmental and financial benefits of installing residential solar panels.
Many Texas homeowners are among those considering solar panel installation—not only as a way to reduce their carbon footprint but also as a way to boost their property value. After all, Texas is no stranger to sunshine, which makes it a prime location for solar energy.
Solar panels can increase the value of your Texas home in four significant ways:
Let’s dig into each one of these benefits of panels in more detail.
The simple answer is yes: installing solar panels can increase the value of your home in Texas. Solar panels typically provide a boost in home value for several reasons.
One of the most noticeable ways solar panels can add to your home’s value is via the money it saves you on energy bills. Solar panels generate electricity by harnessing the natural power of the sun, which means installing panels on your property will substantially reduce your reliance on traditional energy sources. This translates directly into lower energy bills.
Imagine a home where the lights stay on, the appliances run efficiently, and the air conditioning runs as much as it needs to—all while the energy bills remain low month after month. Solar panels make this dream possible by significantly reducing or even eliminating your traditional electricity costs. Not only do these savings help your installation pay for itself in no time, but they’re also an attractive selling point for prospective buyers should you decide to sell your property.
In a sunny state like Texas, where energy consumption skyrockets during hot summers, solar energy savings can add up quickly. Today’s homebuyers are increasingly interested in energy-efficient features like solar panels that will temper rising energy costs and reduce their environmental footprint.
Investing in solar panels can also pay off in the form of a higher property appraisal. Numerous studies have shown that homes with solar panels tend to sell for higher prices than homes without solar panels. More and more buyers are listing sustainable, eco-friendly features high on their lists of desires when it comes to new home purchases. By adding panels to your home, you can fill this demand and enjoy a higher home value.
Solar panels don’t just add home value because of their environmental and energy-saving benefits. They also add to your home’s value by extending the lifespan of its energy systems, resulting in long-term savings and peace of mind. When prospective buyers find out that your home’s energy systems require considerably less time, effort, and money to maintain than the other homes they’re considering, you’ll be at a huge competitive advantage.
Yet another advantage of installing solar panels on your home in Texas is the potential for a faster sale. Not only do homes with solar panels often sell for more money, but they frequently spend less time on the market, too. This is because these panels are a highly desirable addition that distinguishes your home from others that are up for sale in the same area.
The allure of a solar panel system’s environmental and cost-saving benefits, combined with the relatively limited availability of solar-equipped homes, means buyers considering your property will be more likely to act quickly.
Even if speed isn’t your goal in selling your home, FOMO (fear of missing out) is one of the oldest tricks in the salesperson’s book; the more buyers who are ready to make an offer, the more competition it will create, and the higher it will drive bids for your home.
The federal government offers a tax incentive for these installations called the Solar Investment Tax Credit (ITC). Homeowners who install solar panels on their property can receive a 30% tax credit on their federal taxes (the credit increased from 26% to 30% in August 2022, and it will return to 26% in 2033). The federal incentive makes solar panels vastly more affordable—in some cases, the rebate from the tax incentive actually exceeds the cost of the installation itself.
Some states also offer tax incentives at the state level for homeowners who install solar panels. While Texas does not offer tax credits for panel installation, Texas homeowners do not have to pay additional property taxes on increases in home value stemming from solar additions. For example, if your home is worth $400,000, and you add a $25,000 solar panel system, you will still pay taxes on a $400,000 home even though your true home value is now $425,000.
There is a perfect storm of falling equipment prices, various long-term cost-saving advantages, attractive federal and state tax incentives, and an environmentally conscious housing market. Because of this, more and more homeowners are embracing solar panels as a way to increase the value of their homes. Homeowners in sunny states like Texas stand a lot to gain from taking the leap and switching from traditional to solar energy.
If you’re thinking about installing solar panels for your Texas home, the first step is finding the right energy partner to handle the installation. Contact Texas Home Solar to find out how we can help you with a hassle-free residential solar installation experience.