Home values may increase with solar energy

Many individuals may want to go green in their home for purely ethical reasons. However, there are financial benefits to green technology as well, according to Forbes.

A recent study conducted in the Sacramento and San Diego areas found that consumers who installed solar panels to their house saw a 3.5 percent increase in home values. Appraisals rose even more in areas with more college educated individuals and Prius hybrid cars, according to The National Bureau of Economic Research.

Solar panel installation can boost a home’s value by $20,194, on average. This puts the mean return on investing in solar technology at 97 percent without accounting for home energy savings, according to Forbes.

While the green renovation can come with a high price tag, there are many ways to help subsidize the project. Homeowners who know they want to add solar panels before they sign closing papers can bundle the costs into their original home loan with some mortgage lenders. Others can use loans specifically created to add the technology, and all can benefit from the tax incentives created for homeowners that opt such energy efficient additions, the source reports.

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