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Will Solar Increase My Home Value

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hello everyone and welcome to your money

QA question of the day

I'm your host Stacey Johnson and of

course like all of our questions and

answers this one's brought to you by

money talks news calm the best in

personal finance news and advice since

1991

here's today's question it is from

Victoria Victoria says the solar panels

add to the resale value of my home about

six months ago I had a solar salesman

sitting right out of my back porch

trying to sell me solar panels I almost

bet I have really high electric bills I

was gonna constant about 30 grand as I

recall and reduce my bills by about 80%

every month so I did look into this I

did not bite why well because I was

doing some other work to my house

frankly and I think that Solar is gonna

get cheaper and cheaper as more and more

people adopt it so I'm not a huge hurry

to get solar and that's why I didn't buy

it but that has nothing to do with

Victoria's question which was do solar

panels add to the value of a home the

answer is yes solar panels will

definitely add to the value of your home

I did a little research and found it was

an article an appraisal journal and they

had done a study kind of hard to do you

know it's kind of hard to isolate what

makes a house worth more than another

house but they did a study they said

that the average increase in the value

of a home that adds solar is around

$14,000 so that's a that's a nice bump

in their value however remember like I

said it's going to cost me 30 grand to

put solar on my home so that increase

would not be enough to recoup its cost

which would make it on par with lots of

other home improvements we do it's very

difficult to recoup the cost of a home

improvement unless you do labor yourself

or unless it's a real high value home

improvement like remodeling a kitchen or

adding a bathroom sometimes those can

recoup their cost and sometimes even a

little more now one thing that's

important about adding solar in terms of

increasing the value of your home is you

it also is going to depend on where you

are is solar widely accepted its solar

even very effective I live in Florida

Solar works really

well here my house is facing the perfect

direction to get Sun too so I'm in a

great situation for solar a lot of

people have it a lot of people you don't

have it want it so it's probably gonna

increase the value of my home more than

one that maybe doesn't can't take a full

advantage of solar based on either

geography or the the way the house is

facing so bottom line of all this

Victoria sure it's going to increase

your value how much depends on where you

are and what your house is like but yeah

adding solar can be a cool thing to do

and there are some tax credits available

for it and not for that much longer so

take another look I hope that answers

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