Solar Sales Premium

April 16, 2019
Homes with solar panels sell for an average 4.1 percent more than comparable homes without solar panels in their local markets. That's according to a new Zillow study.  For the median-valued home, that premium means an extra $9,274. Sarah Mikhitarian, senior economist for the real estate platform, writes that one reason that homes with solar energy systems fetch a premium on the market is that they offer "substantial" future energy savings, making it worth the while of the buyer to pay the premium up front.
Photo: Jason Howell/Unsplash

Homes with solar panels sell for an average 4.1 percent more than comparable homes without solar panels in their local markets. That's according to a new Zillow study.

For the median-valued home, that premium means an extra $9,274. Sarah Mikhitarian, senior economist for the real estate platform, writes that one reason that homes with solar energy systems fetch a premium on the market is that they offer "substantial" future energy savings, making it worth the while of the buyer to pay the premium up front. This adds on to previous research, finding that more than 80 percent of buyers say energy efficient features are important.

The sale premium varies substantially by market. In Riverside, Calif., for example, homes with solar-energy systems sold for 2.7 percent more than comparable homes without solar power—a markup of $9,926 for the median-valued home in the metro. In the greater New York City metro, solar-powered homes have a premium that is double that of Riverside. At 5.4 percent, that’s an extra $23,989 in value for the typical home in New York. In three other coastal metro areas—Los Angeles, San Francisco and Orlando, Fla.—homes with solar power can fetch a premium of around 4 percent.

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