Climate

Solar panels to boost property prices

Home Solar Panel Arrays

The UK website BusinessGreen reports on a survey of 2,700 UK adults, which “found that half of respondents are interested in finding out whether their home is suitable for renewable energy systems, such as solar panels”:

Meanwhile, over a third said they would be willing to pay more for a house where some of the energy was supplied by renewable sources, suggesting that those investing in microgeneration systems will be able to recoup some of the cost through increased house prices.

The same should apply in this country, especially since a lot Americans understand energy prices are going up whether or not there is a climate bill.  The point is that as peak oil kicks in and the reality of human-caused climate change becomes painfully clear, energy efficiency, geothermal heat pumps, solar panels and the like will increasingly be seen as a desirable if not essential elements of a home, like an up-to-date kitchen, rather than just a “cost.”

The story on the from the Energy Saving Trust survey continues:

Philip Sellwood, chief executive of the Energy Saving Trust, said that the findings were good news for the UK’s emerging onsite renewables sector. “It seems Britons are willing to pay more for a home with a renewable energy source so investing in a solar panel or a wind turbine could add to the resale value of a property and be as attractive to house hunters as a new kitchen or solid wood floors,” he said.

The survey also confirmed that the high upfront cost of renewable energy systems — the cheapest solar energy systems cost over £3,000 and most technologies take anything between five and 25 years to deliver a return on investment — remains the main barrier to adoption.

Hence the need for maintaining tax credits, until we have a price for CO2 that represents its full damage cost.

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5 Responses to Solar panels to boost property prices

  1. Ken Johnson says:

    Solar financing incentives (such as the Berkeley FIRST program), combined with tax credits or subsidies, could make residential solar essentially free for homeowners — even without CO2 pricing. However, emission trading could put an end to such programs if there is no mechanism in place to prevent the resulting emission reductions from being traded for equivalent emission increases elsewhere. For example, Berkeley FIRST would not achieve, and could not claim, environmental benefits unless the surplus emission allowances resulting from the program are retired. (The Waxman-Markey bill does not support voluntary renewable energy.)

  2. Seth Masia says:

    This shouldn’t be news. Several studies in the U.S. show that solar panels boost the resale value of a home. For instance see
    http://www.barbarafarhar.com/resources/pdf/article_solar_today_v22_1_JanFeb2008.pdf

    It’s a doubly good deal in states that exempt solar arrays from property taxes. It means the added value of the home isn’t taxed.

    A number of mortgage lenders now recognize this reality and will write more advatageous terms for homes equipped with solar arrays.

  3. paulm says:

    Lets hope Obama has to guts to sort this out. Now china have their foot in it too with a recent $2b bid.

    Oilsands are back: Output to double in less than five years, Conference Board says
    http://www.vancouversun.com/life/Oilsands+back+Output+double+less+than+five+years+Conference+Board+says/1958028/story.html

  4. This is definitely the case in America. I believe that education is missing. Showing homeowners that solar will actually save thousands over the lifetime of a home, protect the homeowner from blackouts (even in winter), and supply electricity to other homeowners.

  5. Even if energy costs weren’t on the rise, a solar system would make a house more valuable. If you buy a house that has solar, your electric bill will be lower than if you buy a house that gets its electricity from the power company.

    The real question is whether it’s worth it to invest in a home solar system. How many years will it take to recoup your cost? As the price of solar panels declines and the price of electricity from the power company rises, it makes sense for more people to install solar systems.