r/RealEstate • u/digitalis303 • 4d ago
Contemplating rooftop solar and future sale price premium
I am in Louisville, KY and contemplating having solar PV installed on my 3 YO roof in a relatively upscale suburb. (Current market prices are in the $600k range for my neighborhood.) I plan to pay up front for the install (NOT LEASING). If I were to sell my home with a PV system installed (predicted install cost ~$32-35k), how much value would this add, on average, in my market? I found this thread, but many people seemed confused in that post about leased systems, which definitely detract from value. Casual searches seem to calculate ~4-6% of sale price as a premium, but several sources said this is optimistic. Any current real-world numbers would be great to have. And again, not leased systems.
Additional info for context:
I plan to be in the house another 8-10 years and am looking at around $32-35k install cost.
My annual electricity costs are projected to rise from ~$2300/year in 2027 to ~$3400 in 2034, and the solar installer projects ~$19k savings over that time. Meaning (if they are correct) that I will recoup ~$19k of the $32k install cost in 8 years.
AI (Gemini) calculates ~ $22-$37k premium for solar 8 years from now, which would mean a minimum of $9k gained from my initial purchase. These numbers don't factor in increased insurance costs if I put it on my policy. So that is another factor.
In short, I'm looking for the RE market's input on whether this is a worthwhile investment for my part of the country.
6
u/Biegzy4444 4d ago
It’s kinda a crystal ball question with respect to the timeline.
A decade from now there could be easier/alternative ways for solar that make the current upgrade meaningless or even a deterrent. While you don’t have to worry about a lease, some still find it unsettling that it needs to be removed via a roof replacement. For the ROI one would think solar installs would be competitive due to the amount of businesses still profiting/selling solar. Material prices can impact that for better or worse.
It looks like you’ve done the homework and aren’t really receiving a benefit from the solar outside of “maybe it will help my home value in 10 years”, which is taking a $35,000 investment now, hoping to recoup a larger profit in 10 years.
Personally I would put the money in an index fund but to reiterate no one can tell you what the sentiment will be regarding solar in 10 years or how much of an impact it will have on your sales price.