If you’re looking into installing a Tesla Solar Roof, you may be wondering whether it increases your home’s value. After all, installing a solar roof is a significant investment, and it makes good financial sense to know the pros and cons before you make any commitments.
Many people wonder whether the Tesla Solar Roof will affect the resale value of their homes and if it will make the home easier or more challenging to sell.
This article will discuss the following:
- How much a Tesla roof will increase a home’s value
- Whether solar panels raise a home’s value or if they hinder sales
- The best locations for solar power to be a great selling point, and
- Considerations before listing a home with solar panels or a solar roof.
Let’s start by talking about the pros and cons of the Tesla Solar Roof and how you can get the most out of this exciting technology.
Do Solar Panels Raise Home Value?
Many homeowners wonder whether installing solar panels will help or hinder them should they ever need to sell their house. The truth is, it’s difficult to give a blanket “yes” or “no” answer to this question because of the complexity of the issue.
It may not seem so on the surface, but you might be surprised just how much variation exists within the solar power industry alone.
Local Real Estate Laws
First, we need to consider the local real estate laws. For example, California has passed legislation stating that all new homes will require solar panels. With all new Californian homes boasting solar panels, it won’t be an incentive for someone to purchase one property over another.
Reimbursements and Tax Credits
Second, energy efficiency reimbursements or tax credits vary by region. For example, because California is pushing solar energy so strongly, they have a robust rebate program.
Local solar rebates can range from $500 to $0.95 per watt of installed capacity. Or you might see something like Utah’s program, where the tax credit refunds up to 25% of the purchase and installation cost up to $2000.
On the other hand, if you live in a state such as Alaska or Wyoming, where there is no state income tax, you will not see any state tax credits for solar energy.
Lifestyle and Personal Choice
Finally, it also comes down to individual lifestyle. Research by Zillow showed;
that Ssolar panels can increase a home’s value by up to 4.1% more than comparable homes with no solar panels.s—
but these are big selling points for people who consume a lot of power or desire a “greener” lifestyle. So this is something to keep in mind when listing your home as well.
Do Solar Panels Add Value to an Appraisal?
Solar panels can add value to an appraisal. A 2015 study showed that home buyers are consistently willing to pay more for homes with solar panels, and this included houses across many states.
The cost averaged about $4 per watt of solar energy installed or about $15,000 for the typical solar-powered system. So, in other words, you could expect that an appraiser would assign some value to the solar panels when appraising your home.
Unfortunately, real estate agents and appraisers need to have experience with solar power. If they don’t know anything about it, they often don’t assign the appropriate value to it.
The homeowner has the responsibility to provide documentation about the solar power system so that the appraiser can consider it fairly.
How Much Does a Tesla Roof Increase Home Value?
Now that we know that a solar power system can increase your home’s value, let’s talk about what a Tesla roof can do. This solar power system shares many similarities with its competitors, but there are some areas where it outshines the competition.
While it costs more to have installed upfront, it pays for itself over time with the savings that come from using your own power source. It can be leased as well, which is an attractive option for some customers.
What is a Tesla Roof?
A Tesla solar roof is built with a 25-year warranty and runs at 97.5% efficiency. It received high ratings against wind, fire, and hail, making it a durable investment even in areas of the country where weather can be unpredictable.
With a Tesla Roof, you can power your home at the lowest price per watt of any national provider.
The app allows you to monitor your energy production in real-time, and the built-in connectivity enables the Tesla solar inverter to download and install software updates as they become available.
How does the Solar Roof work?
The roof is connected to the Tesla Powerwall, which is a battery that can be installed inside or outside. The solar roof gathers photovoltaic energy from the sun and stores it in the battery.
This way, you can use the energy stored in the battery at night, during an outage, or even during peak usage times. All of this helps you save money.
Does the Tesla Solar Roof Look Unsightly?
Many people think of the unwieldy solar panels of the past and worry whether this is the case for newer technology. After all, if it makes a home look unattractive, it may be more difficult to sell.
But if there’s one thing consistent across Tesla’s products, it is that they are built to be sleek, modern, and attractive. The solar roof is no different: it boasts a seamless design, so each tile looks neat whether viewed up close or from a distance. The roof can be constructed to complement your home’s existing aesthetic.
Is It Harder to Sell a House with Solar Panels?
Interestingly, according to the National Renewable Energy Laboratory, homes with solar panels sell approximately 20% faster than homes that don’t have solar energy options—and they also net about 17% more than those without.
When you own your own solar panels, such as the Tesla Solar Roof, selling the home is not complicated. You’ll likely be able to get a higher appraisal and you can charge more for the home with the system included. This tends to be true even in areas where solar isn’t common yet.
If you are leasing your solar panels, selling your home with the lease still active can become cumbersome. For example, you’ll need to either buy out the lease to pay it off, or you will have to have the new owners take over the lease.
However, the new buyer will have to meet credit requirements and they have to be willing to sign their name to the contract.
If you receive an appraisal that you think is inaccurate, you may need a second opinion. Having your home’s solar power system adequately appraised is essential when putting it on the market.
After all, it is an investment, and you want to be appropriately compensated for your time and money.
Do Solar Panels Hurt the Resale Value of Your Home?
As we’ve discussed, solar panels tend to be a boon for your home, not a burden. Solar is a reliable investment that can be appropriately rewarded in many areas of the United States, in the form of tax credits, reimbursements, and other incentives.
The Tesla Solar Roof looks great and comes with a 25-year warranty, which is perfect when looking to sell your home.
The only situation in which solar panels may hurt the resale value of your home is if they are leased rather than owned. Prospective buyers might feel put off by needing to sign one more lease or agreement—especially when making the decision to take on something as significant as a mortgage.
Although the Tesla Solar Roof can be leased, it is probably wisest to pay for it upfront. This way, you own the system and can sell it included in the cost of your home.
In this case, the transfer in ownership of the home also applies to its power system. If you lease the system, then you have to process these items separately, which is an additional financial burden to buyers.
Top 10 States with the Highest Solar Premiums for Median-Valued Homes
These numbers were taken from a study done by Zillow. It is important to note that premiums can vary within states and by cities, and that this data may not reflect current market costs.
- New Jersey: 9.9% or $32,281
- Pennsylvania: 4.9% or $8,589
- North Carolina: 4.8% or $8,996
- Louisiana: 4.9% or $7,037
- Washington: 4.1% or $15,916
- Florida: 4% $9,454
- Hawaii: 4% or $24,526
- Maryland: 3.8% or $10,976
- New York: 3.6% or $10,981
- South Carolina: 3.5% or $5,866
Even if you do not reside in one of these top 10 states, it is still worth investigating whether you can receive a worthwhile solar premium.
Some states don’t have enough homes with solar-energy systems to accurately identify a premium, but this data is always changing as solar options become more popular.