In New York City, where real estate values soar and sustainability is becoming increasingly important, the question of whether solar panels can boost your home’s value is a pertinent one. Let’s dive into the factors that influence this and how solar increases the value of your home.

NYC’s Ambitious Clean Energy Goals

With the passing of the NYC Climate Mobilization Act in 2019, New York City has set some of the world’s most ambitious clean energy goals. NYC is aiming to reduce building carbon emissions by 40% by 2030 and by 80% by 2050.

To achieve this goal, the city has implemented various laws (Local Law 97 & Local Laws 92 & 94) and initiatives to promote renewable energy adoption, including incentivizing solar panel installations through rebates, tax credits, and other programs.

Want to know how much money you can save with solar? Get a free consultation!

Solar tilt racks systems on flat roofs of Brownstones in New York City. According to Zillow, Solar increases home value. — Solar Tilt Racks and Canopies on top of Brooklyn Brownstones.

How Solar Panels Increase Your Home’s Value

Research done by Zillow indicates that installing solar energy systems does indeed increase the value of your home. Prospective buyers are increasingly attracted to properties with solar panels and other environmentally friendly features due to the promise of reduced energy bills, environmental benefits, and the potential for long-term savings.

In a recent case study, a couple in Sunset Park, Brooklyn started their journey to electrify their rowhouse. With solar panels, a heat pump mini-split, and a heat pump water heater, they saved $1,510 on electricity and $2,748 on gas in a year. For home buyers, energy savings like this can make a home look much more attractive.

LG Ductless mini-split system powered by solar power in Sunset Park, Brooklyn. Solar and other electrical upgrades increase home value. — LG Ductless Mini-Split System Powered by Solar

Factors that Impact the Value of Your Home with Solar

Several factors influence how much value solar panel systems add to your home. Understanding these factors can help homeowners maximize the return on your solar investment:

1. Type of Ownership

If raising the value of your home is a priority when going solar, we recommend owning your system. Selling a home with a leased solar energy system most likely won’t raise the value of your home and will make the selling process more complicated.

2. Market Conditions

Local market conditions play a significant role in determining the value added by solar panels. In NYC, where sustainability is often prioritized in the minds of home buyers, solar power is highly valued.

3. Home Characteristics

The system size, age, and style of your home can influence how much value solar panels add. Larger homes with higher energy consumption can benefit more from solar installations.

Solar Canopy System on top of flat roof Brownstone in Brooklyn, New York. According to Zillow, Solar increases home value. — Solar Canopy in Brooklyn, New York.

Solar tilt rack system on top of New York City co-op in Manhattan. According to Zillow, Solar increases home value. — Solar Canopy in Brooklyn, New York.

4. Roof Type and Orientation

The suitability of your roof for solar panels, including its orientation and shading, can impact their effectiveness and, consequently, their value. With a free consultation from Brooklyn SolarWorks, an expert will analyze your roof and you’ll learn how much money a solar system on your roof will save you.

5. Solar Panel Efficiency

Solar panel efficiency is a measure of how much of the sun’s energy can be converted into electricity through photovoltaics. In other words: if a solar panel is rated at 18% efficiency, that means 18% of the sunlight that shines on the panel will be converted to usable electricity. New York has immense solar potential, and solar PV technology continues improving all the time.

6. Panel Brand and Warranty

The reputation of the solar panel brand and the length of the warranty can influence potential buyer confidence and, therefore, the value they attribute to your home. Brooklyn SolarWorks uses Qcells panels and has an industry leading 30-year total system warranty.

System Warranty, Power Production Guarantee, 24/7 Real-Time Monitoring, Financing Options Descriptions.

7. Home Age and Energy Efficiency

Newer homes with modern energy-efficient features (i.e. electric water heater, insulation, electric heat pumps) can see a greater increase in value from solar panel installations. Running electric HVAC appliances on solar power, rather than power from the grid, increases their cost effectiveness and reduces your carbon footprint.

8. Installation Quality and Aesthetics

The quality of the solar panel installation and how seamlessly it integrates with your home’s aesthetics can impact its perceived value. Going with a local solar installation company that knows the ins and outs of NYC’s permitting regulations guarantees that your home will have the type of system that fits your home’s aesthetic and energy needs. Brooklyn SolarWorks are experts at making solar work on historic and landmarked homes!

How Much do Solar Panels Increase your Home’s Value in NYC?

In a 2019 Zillow study, it was found that homes with solar panels in NYC sell for 5.4% more on average than comparable homes without them. This translated to an additional $37,800 on the median sales price in NYC.

Bar chart showing the 2019 Zillow study of solar increasing home values in New York, Orlando, San Francisco, United States, Los Angeles, and Riverside.

National Renewable Energy Laboratory (NREL) estimates that home value increases by $20 for every $1 saved on electricity bills. With NYC’s high energy costs, solar panels can lead to significant energy cost reductions, further boosting value.

Do Solar Panels Affect your Property Taxes?

In New York City, solar panels are exempt from property tax increases for 15 years for the assessed value they add to a property. This means that even as solar increases your home’s value, you won’t see a corresponding increase in property taxes.

New York City also has a unique incentive (only available to the five boroughs) called the Property Tax Abatement (PTA). NYC’s PTA for solar covers 30% of your solar panel installation costs. It reduces your property tax bill from the New York City Department of Finance incrementally for 4 consecutive years. New Yorkers who install solar electric systems on both residential and commercial properties that they own can claim this abatement.

Maximize Your Solar Investment with Tax Credits and Rebates

In addition to increasing your home’s value, going solar in NYC can also result in significant savings through tax rebates and credits. Federal, state, and local incentives can help offset the upfront cost of solar installations and accelerate your return on investment. NYC homeowners can qualify for the following incentives:

NYS Solar Income Tax Credit: Covers 25% of solar system costs (up to $5,000)
NYS Solar Rebate: Covers $0.20 per watt of solar installed, paid directly to the installer then passed in full to the customer
NYC Property Tax Abatement: Covers 30% (over 4 years) of solar system costs
NYS Historic Homeownership Rehabilitation Tax Credit: Covers 20% of solar system costs for qualified homes
Federal Income Tax Credit: Deduct up to 30% of solar system installation costs from your federal income tax

Your home could save more than 75% on your solar project. See what incentives your home qualifies for today with a free consultation.

It’s Time to Go Solar in NYC

With NYC’s commitment to clean energy and the potential for increased property value and significant savings, there has never been a better time to go solar in the city.

Take advantage of available incentives, choose local solar experts, and watch as your home becomes not only more sustainable but also more valuable in the eyes of potential buyers. Make the switch to solar today and reap the rewards for years to come.

Does Solar Increase My Home’s Value in NYC?