Impact of Solar Energy on Property Value: How It Works

As homeowners are increasingly shifting towards making renewable choices, solar energy systems have become a popular choice. The environmental benefits of solar and their potential impact on property values is driving rapid adoption of solar as an energy source. For a country with abundant sunlight, supportive government policies and high return on investment solar energy is transforming how the country views sustainable concepts and initiatives. Let us understand how solar energy is now impacting property values and what it means for homeowners and potential buyers. 

How Do Solar Power Systems Enhance Property Value? 

• Research indicates that homes with solar power systems installed have a 4% to 5% appreciation in their value. This is a direct increase in value where a house costing 80 lakh rupees before solar installation can see an increase in value by about 3.2 lakh to 4 lakh rupees.  This increase is attributed to primary factors like energy savings and long-term financial gains as electricity prices continue to rise, that potential buyers can look forward to. And higher appreciated property value that homeowners looking to sell can look forward to as well. 

• With increasing awareness on sustainability, several homeowners are looking for sustainable alternatives to traditional utilities influencing the market demand and making solar a prime choice for them. This paired with government initiatives like the PM Suryaghar Yojana that promote sustainable practices and renewable choices make it a more financially viable option in turn pushing demand for solar in the country.  

• Quicker Sales 

  A report on the US market by Zillow indicated that homes with solar energy systems installed are 24.7% more likely to sell for more than their asking price in comparison to homes that do not have solar. As more and more homes get solar, houses without solar lack in desirability as a modern and environmentally friendly option leading to homes with solar selling faster. 

Factors Influencing Solar Driven Property Value 

1. Location 
   

Urban areas might observe a higher premium compared to rural areas due to acceptance, awareness, and demand of solar among buyers and real estate agents. Policies such as state electricity tariff vs the return rate provided can also influence demand and in turn influencing value appreciation of the property due to solar. 

2. System Size and Condition 
   

Old systems that have been used for 10 years or more might not retain the desirability of same level as for a newly installed system on a house, emphasizing the need for maintenance of the system to yield higher returns. Small sized systems also offer lesser returns in appreciation of property value as compared to larger sized systems. 

3. Market Trends 
   

Future projections of 637 GW across 25 crore households demonstrates significant demand for solar with the country’s ambitious goal to push renewable energy capacity the properties with solar continue to gain value as the market matures. 

Why Solar Energy Matters for Property Value 

1. Growing Demand for Sustainable Living 

With rising awareness about climate change, environmentally cautious homeowners are equipping their homes with sustainable solutions for a better living. This includes purchasing EVs, installing smart lightings and rapidly adopting solar energy systems. Properties with such attributes are seen as modern and eco-friendly investments. 

2. Cost Savings on Energy Bills 

Solar panels allow homeowners eliminate electricity bills by reducing them more than 90%. The long-term savings that are associated with investment in solar is highly attractive for anyone considering reaping easy benefits from selling their property in the future. Lakhs of rupees can be saved by homeowners over the lifetime of their solar installation, making it a sought-after choice. 

3. Government Subsidies 

Government subsidies for solar such as the PM Suryaghar Yojana can help reduce investments significantly. Buyers are willing to pay higher for solar installed homes in turn increasing profits for homeowners that avail subsidy before selling their home. As demand for the subsidy grows, approximately 1.5 crore applications have been submitted, despite the program being initially intended for just 1 crore Indian households. 

Key Benefits of Solar Energy on Property Value 

1. Increased Market Appeal - Homes with solar panels sell faster more than comparable homes without solar.  

2. Higher Appraisal Values - Solar installations enhance property values up to 5% excluding energy savings and environmental benefits. 

3. Long-Term Investment - As energy costs rise by more than 2% every year, solar-equipped homes may appreciate to appeal to buyers looking for sustainable options with value for money and great ROI. 

Financing Options 

With several Financing options now being available to add a solar energy system to homes it has become more easier than ever to install solar for homeowners. Banks and NBFCs have tied up with solar providers offering low and attractive interest rates and lucrative offers for interested homeowners. This can significantly reduce the pressure of high initial investment.  

Atria Renewable offers attractive financing option in association with our NBFC partners Credit Fair that offer specialized solar loans with an easy EMI option that is just equal to your electricity bill of Rs 4000 and an attractive interest rate of 7.65%.  

Conclusion 

The impact of solar energy on property value is significant as demand for sustainable energy grows, homes with solar panels are becoming more appealing to buyers. With suggested estimates of 4% to 5% gain of property value coupled with substantial savings on electricity bills for 25 years or more solar has become the most lucrative investment today. The potential for cost savings, increased willingness to buy, and long-term return on investment makes solar energy the right choice for homeowners looking to enhance their property value. 

Taking steps to build a cleaner and greener planet in the modern era of smart and sustainable attracts environmentally conscious buyers that do not mind spending more for acquiring sustainable technologies like solar power system. By embracing renewable energy choices like rooftop solar homeowners not only enhance their property value but also contribute to building a sustainable future for the next generations. 

Make Atria your preferred choice for high quality solar installations that last for 25 years and more. Call us today at 080 62680000!