Solar panels are the leading renewable energy source in many American homes, including in Arizona. However, there are concerns over the profitability of installing solar panels on homes to be sold, raising the question, “Do solar panels increase home value in Arizona?”
Yes, solar panels increase home value in Arizona, but not all solar panels. Many homeowners opt for leases. While it’s a great way to save on energy costs, it doesn’t add value to your home. However, solar panels that are bought increase the value of your home by over 3% in Arizona.
This article will answer the question, “Do solar panels increase home value in Arizona?” It’ll also help you understand why many homes in Arizona don’t have solar and if solar is worth it in Arizona.
Solar Panels and Home Value in Arizona.
The primary purpose of installing solar panels in any home is to curtail reliance on the regular energy source and save some money on energy consumption. There is also the added benefit of increased home value if you want to sell your home after installing solar panels. It is worthwhile to note that there are a few instances where you may devalue the house due to the solar installation.
Arizona looks to have about 15% of its energy from renewable energy sources by 2025, making it one of the leading states with good solar energy use potential. Arizona is one of the sunniest states in the United States of America. According to the Solar Energy Industries Association, as of 2021, Arizona ranks 5th in the states with the most solar energy generation at 5,642.6 MW.
The state has enough solar panels and power for 949 672 homes, of which 209 513 have solar panels installed. However, others are skeptical about installing solar panels for valid reasons, one of which is its effect on the resale value of their homes.
In Arizona, as it is in other American states, homeowners can access solar energy by purchasing solar panels or leasing them from the appropriate companies. However, the choice of solar energy acquisition affects your resale home value.
Is Solar in Arizona Worth it?
Yes, solar in Arizona is worth it, considering the intensity and duration of sunshine in the state. It is one of the sunniest states in the USA and has one of the largest solar energy capacities in the country, with companies such as the Solana Generating Station.
The two options for getting solar energy into your home—purchase and lease – are advantageous in their ways. Here are some reasons why solar in Arizona is worth it.
Abundant Sunlight
The backbone of solar energy is sunlight, and Phoenix, Arizona, has an abundance. Arizona experiences about 300 days of sunshine throughout the year, which is why many believe it should be the leading state in solar energy generation.
As a homeowner in Arizona, you can depend on your solar panels to provide electricity with great sunshine days for most of the year.
Saving on Energy Costs
Since you mainly depend on solar panels to provide electricity for you, and you can sell excess energy, you’ll save on energy costs and earn money if you own the solar panels.
As it gets better, you can recover the cost of installing your solar panel in as little as five years, depending on your energy requirements and home size, and begin earning income from it as soon as possible.
Increased home values
One of the reasons many homeowners in Arizona are skeptical about installing solar panels is their uncertainty about their solar panels’ effect on their home value.
Generally, if you outrightly purchase solar panels instead of leasing them, as some do, it increases the value of your home. However, if you rent them, it reduces your home’s value. Despite that, it still saves you significant energy costs.
Do Solar Panels Increase Home Value?
Solar panels are valuable assets because they require little maintenance and can generate solar energy for you for more than 25 years. During these 25 years, you’ll have covered the cost of purchasing your solar panels and can start earning from them.
Yes, solar panels increase your home’s value by up to 3% because they’re assets. This, however, only applies to Arizona residents who purchased their solar panels outright rather than leasing them. Homebuyers will readily close the deal on a home with purchased solar panels because they don’t have to pay some monthly bill to a company like leased solar panels.
Why Don’t More Homes in Arizona Have Solar?
While some Arizona homes have solar panels, the state is expected to have a higher percentage of solar-powered homes than other leading states, such as California. Although the state’s solar power growth has been impressive, it can still achieve more. In Arizona, however, solar is installed in fewer homes for the following reasons:
Unfavorable government policy
Arizonans are willing to have solar panels on their roof and become independent of utility companies. The government and utility companies are still at odds over how solar energy-generating homes can sell their excess power to their neighbors. Utility companies are attempting to stifle easy access to solar energy by avoiding competition with homeowners with rooftop solar panels.
A government policy that stalls the installation of solar panels by homeowners until they can reach a resolution with utility companies is in place, causing uncertainty for homeowners who’ll like to install solar panels.
Arizona Home Buyers’ Attitude
Unlike in California, housing in Arizona is relatively affordable. However, the inclusion of solar panels in homes will drive the prices of houses up, and sellers may have homes on sale for longer than necessary.
Since solar panels are assets and increase home value, it increases the price a homebuyer has to pay if more and new homes have solar panels, which may be detrimental to real estate tycoons.
Final Thoughts
Arizona is the sunniest state in the USA, but it doesn’t rank in the top 5 countries that depend on solar energy. Homeowners’ fear about how solar panels affect their homes’ values is one of the reasons to blame.
Solar panels increase home values by up to 3% in Arizona, but it can be more in other states, such as California.
