This week I got an inquiry through my website regarding the value solar adds. This is how I responded.
Here are a couple of thoughts I have on solar. First off, in order to get the tax break you need to have the project finished by the end of the year, as the breaks expire due to the 'Big Beautiful Bill'. It's almost too late in the year to be pursuing solar if you want the tax break.
Chat GPT says solar increases your home value by 4-6% in Marin County. Google says 5-10%. I don't think either are correct and here's why...
1) Solar leasing does not increase the value of your home. Buyer's don't want to take on your leased solar system. Lots of the leases are scams and actually detract from the value. People with leases can pay more for their energy than if they didn't have leased solar.
2) Solar purchased outright increases the desirability of your home. To me, it doesn't necessarily add value, because whenever your put your home on the market it will be compared to the existing inventory. There are innumerable pluses and minuses on each house, including lot and home size, updates, traffic on your street, and much more. The fact is, if you have two of the same houses and one is priced at $1.2 and the other is priced at $1.26 with the only differences a used solar system, I'm confident that the vast majority of buyers would take the $1.2 house and not the $1.26 with used solar. If they are priced the same, or maybe the one with solar nominally priced $10,000 more, the buyers would choose the one with solar.
3) The value of your home at the time of sale will also depend on the laws of supply and demand, not to mention current interest rates. For instance, currently we are in a buyers market with lots of inventory and few buyers. Having solar could be the difference in a slow market between making a sale and not making a sale. It's a perfect time for the two identical homes priced the same to have the one with solar sell ahead of the other one.
4) I haven't heard a buyer say, I'm not buying a house because it doesn't have solar. And I haven't heard a buyer or any agents say, 'Solar adds X amount of value'. In fact, I spoke to a seasoned appraiser this morning and she makes no adjustments on the value for solar.
5) If you want to do the environmentally conscious thing, get solar! If you value the feeling of independence from the grid, it's the logical choice.
6) I considered solar for my own home. It would have roughly been $42,000 with a battery. The tax break would have brought it down to $30,000. My problem is the opportunity cost of that $30,000. Sure I'd be saving money on PG&E, however if I had that money invested in the market I could assume an 8-10% return over time with a good index fund, and by the time the savings from solar was outshined my investment, it would be 30 years and the system would be obsolete. Solar does not make financial sense to me.
In conclusion, if the money doesn't matter to you I think it's a great thing to buy solar because of the environmental benefits, plus the independence from the grid. Otherwise, I personally have chosen not to go with solar at this time. I hope that helps!