Do solar panels raise the value of a property in MA?

Question

I am considering installing solar panels on my primary residence in Massachusetts, but I don't know how this affects the resell value of the home.  I will probably go with buying the solar panels outright, so I don't have to deal with a lease.  How will the solar panels affect the home's value?  I imagine it should raise the value, but I don't know by how much.

Michael Mullins · Answer

I have solar on my houses going back 8 years. The appraiser came out and appraised the house off of other homes in the area that have solar. However in Austin TX people love solar and are aware of the benefits they provide. However, what ever you do, do NOT get a lease. Your idea to purchase them right out is the right thing to do. People have issues with the LEASE, not the solar. All you have to tell someone in TX (oil country) that I have a 2300 sq house built in 2000 and my electric bill in the summer is $50. That right there will blow the mind off people every time you tell them that. So when you do get solar installed on your house, remember to pay attention to the financial payback period. You don't need expensive batterys if you live in an area that that doesn't lose power all the time. And you don't need to replace 100% of your electric need with solar. Go for 80% replacement and you will be happy. I love my solar, it's been a great investment.

Renee Tepper · Answer

Hi Matt, I'm a real estate agent as well as a flipper, in Massachusetts.  I recently listed and sold a client's home with solar panels.  I found that all the potential buyers were unfamiliar with them and very concerned about them. Unlike you, these panels were leased and we had to transfer the lease. Monthly payments are made to the solar panel company, and to the electric company. The solar company was helpful but just created another concern during the sales process. In summary, having the solar panels did not increase the value at all and almost hindered the sale. It's unfortunate but hopefully people will eventually become more familiar with solar panels and understand the savings and the environmental benefits.

Andrew Smith · Answer

Leased solar systems are explicitly not able to be appraised by Fannie Mae but owned/financed systems explicitly are able to be appraised for full value by Fannie Mae.Outside of that, there are subjective factors that could raise/lower the appraised home value, but the incentives in MA makes solar highly attractive.

Dan Lainer-Vos · Answer

The question actually has a scientific answer. Researchers at Lawrence Berkeley National Laboratory for energy have done a number of large scale studies comparing sale value of solarized and non-solarized homes in different submarkets. The size of the premiums vary from market to market and depend on the age of the solar system but overall, they report a premium that goes well beyond the cost of installation.

Kuba F. · Answer

@Matt Mahony I have panels on my CA house and had an appraisal done.  The appraiser used a year's worth of electricity savings as value.  In my opinion it should be at least the average number of years that people stay in one house.  In places where panels are less common, I imagine they might not even value them. So with that, solar is basically an over-improvement, and only benefits you if you're the one paying the electricity bills.  That being said, I think everyone should get solar for their personal residence if they plan on staying in their house beyond the payback period.

Paul Donoghue · Answer

@Matt Mahoney  it depends if you own the solar or rent it.  If you own it are you receiving SRECs quarterly.  In Ma our program for SRECs is for 10 years.

Do solar panels raise the value of a property in MA?

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