Pacific Swell

Southern California environment news and trends

PV solar warms up your property value, LBNL says

Does PV solar help your property value? 

Lawrence Berkeley National Lab researchers got curious. So they gathered a dataset of about 72,000 California homes, including 2,000 that had PV when they were sold. They used several pricing models, and looked into whether "premiums for PV installed on new homes were different than those for PV installed as a retrofit on existing homes, and whether the age or the size of the PV system impacted premiums." Which all means, they weren't messing around. 

The answer, according to Berkeley Lab's new study? Yes, and to the tune of about 17 large

[E]stimates for average PV premiums among a large number of different model specifications coalesced near $17,000 for a relatively new “average-sized” - based on the sample of homes studied  - PV system of 3,100 watts (DC). This corresponds to an average home sales price premium of $5.5/watt (DC), with the range of results across various models being $3.9 to $6.4/watt. 

On the other hand, the premium decreases as technology ages - "indicating that buyers and sellers of PV homes may be accounting for the decreased efficiency and remaining expected life of older PV systems."

“One reason for the disparity between existing and new homes with PV might be that new home builders also gain value from PV as a market differentiator that speeds the home sales process, a factor not analyzed in the Berkeley Lab study," co-author of the study Peter Cappers says. But the research they did didn't cover that. 

This counts as "at a property" right? (At Deep Springs College, CA)

This counts as "at a property," right? (Array at Deep Springs College, CA)

 

Any realtors or real estate agents out there with some first hand experience about this in southern California? 

You can read the full report here.


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