Do Solar Panels Increase Home Value In Illinois?
Electric bills are rising faster than inflation, and no one knows when this trend will end. So, people decided to switch to solar power to achieve financial stability and grid independence with solar energy.
You’re probably weighing the pros and cons of going green, switching to solar, and determining whether eco-friendly electricity production suits you.
Today, we’ll explore solar benefits and specifics of going solar in Illinois. You’ll discover whether solar panels increase property value and change taxation in Chicago. Let’s dive into the world of solar finances!
Energy Cost Savings
Solar panels can dramatically reduce your electricity bills. By generating clean energy, you reduce reliance on the grid. The exact amount of cost savings depends on several factors:
- System size and capacity: Larger and more powerful systems generate more electricity. It can lead to more significant savings, raising solar panel home value.
- Sun exposure: During long summer days, panels receive 10-14 hours of sunlight, generating more electricity than in short 5-7 daylight hours in winter.
- Local electricity rates: Higher rates from a utility provider can translate to more lucrative savings with solar.
- Energy consumption: If your appliances consume a lot of electricity, green power production lowers your carbon footprint.
Solar panels increase home value and lower bills. According to statistics, your average yearly electricity bill will be roughly $1,500 lower with solar than without it. Net metering and Illinois Shine’s incentives allow you to save even more.
Looking for the best solar panel system in Illinois? Get your free solar quote right away!
Environmental Benefits
Solar increases property value and offers numerous environmental advantages. Clean energy production generates power without burning fossil fuels. It reduces your greenhouse emissions.
Traditional power plants often require large amounts of water for cooling. Solar panels have minimal water requirements, conserving this precious resource. At the same time, the Sun is a renewable source that will never run out. So, solar panels increase home value in Illinois and contribute to a green society.
The average solar system emits just 50g of CO2 per kilowatt-hour, 20 times lower than coal-powered electricity sources. Therefore, installing solar power in your home will reduce your carbon footprint.
Market Demand for Solar Homes
The market demand for solar solutions is constantly rising. As people become more aware of climate change, they’ve started looking for ways to produce clean electricity. Solar panels increase property value and provide clean power to your house.
Many people also become worried about constantly growing bills that rise faster than inflation. Solar panels increase home value and provide many economic benefits, from lower bills and tax incentives to compensations from utility providers.
If you install an off-grid system with capacious batteries, you become energy-independent. If you want to use the grid occasionally, solar homes can help lower your bills through net metering and SREC credits. In both cases, solar panels increase home value. It boosts the market demand for green homes even more.
Home Value Appraisal
Solar panels increase property value by 4.1% on average. If you want to install powerful panels, you may improve your home’s property and market costs even more.
The age and condition of the system also affect the appraisal of solar panels and home value. If your system is well-maintained, it will ameliorate the house’s price even 10 years after installation.
We recommend keeping all relevant paperwork, such as permits, inspections, and performance data. Later, you can show it to the appraisal to describe how solar increases the property value of your home.
Attracting Eco-Conscious Buyers
Those buyers are looking for energy-efficient houses that run on clean electricity. If your home has a solar system, it perfectly suits their requests. So, you can start promoting it for conscious buyers, as installing solar increases home value and marks your home as independent from grid outages.
If your house has additional eco-friendly elements (solar water heater, energy-efficient appliances, water-saving fixtures, etc.), highlight them in your ad. Showcase the property’s power independence and reduced grid reliance. Highlight the long-term benefits of using panels and potential solar resale value if they switch back to the grid.
Communicate the solar panel system’s specifications, performance, and warranties. Be prepared to answer questions about solar panel maintenance, lifespan, warranties, and potential issues.
Improved Home Efficiency Ratings
Going solar is a decision that can boost your energy efficiency in the short and long term. Solar panels generate clean electricity, offsetting your reliance on the grid and lowering the strain on your home’s heating and cooling systems.
Some energy-efficient upgrades, like improved insulation, can work synergistically with solar panels. By reducing heat transfer, better insulation allows solar energy to be utilized more effectively for heating or cooling. Combining energy efficiency measures with solar panels affects home value.
Long-Term Financial Benefits
Solar panels offer substantial long-term financial advantages. Beyond the immediate energy cost savings, solar systems can provide steady economic benefits. If you are curious about common solar questions like “Will solar panels increase my property taxes?”, “How do solar panels affect home value?” or “Do solar panels hurt the resale value of your home?”, we are here to comfort you.
Illinois offers a special assessment of solar energy systems for property tax purposes. When you claim for alternate valuation, the chief county assessment officer must ascertain two values: the worth of the improvements as if equipped with a conventional heating or cooling system and the worth of the improvements as equipped with the solar energy system. The alternate valuation is the lesser of these two values.
Eligible equipment includes both active and passive solar energy systems. It’s not as clear-cut as the 100% property tax exemption we’ve seen in many states, but it still saves you money. So, while your home value increases with solar panels, in most cases, your taxes will stay almost the same.
To make the solar switch even more profitable, you can use net metering and Illinois Shine’s credits. At first glance, they look similar. However, they have different usage and payment mechanisms, so choose wisely.
Wrapping It Up
While the initial investment in panels can be substantial, the long-term financial benefits and boost of your property value often outweigh the upfront costs. Usually, it takes 5-10 years to receive a payback.
Solar panels offer numerous benefits for Illinois homeowners, including energy cost savings, environmental advantages, and potential price boosts of your property. By going solar, you contribute to a cleaner environment and enjoy energy independence.
Looking for the best solar panel system in Illinois? Get your free solar quote right away!
FAQ
Do solar panels increase home value in Illinois?
Yes, solar panels can increase the home value in Chicago and Illinois. Studies consistently show that homes with solar panels sell for more than comparable homes. “Green” houses also provide cost savings and attract eco-conscious buyers for your property.
Do leased solar panels increase home value?
Typically, leased solar panels do not significantly increase a home's value. While some agreements allow transfer to a new homeowner, it's not always straightforward and might deter potential buyers. The new homeowner would inherit the lease terms, which could be considered a financial burden.
How do solar panels affect property values?
Yes, solar panels generally increase a house’s property value. Homes with solar panels often have lower energy bills, making them more attractive to potential buyers. Environmental appeal and potential resale worth also add to the final price.
Will solar panels increase the value of my house in Chicago?
Yes, with a solar system, your house value increases by 5-6%. The final numbers depend on your previous property value, solar system parameters, potential cost savings, and the house's environmental appeal.
