When it comes to owning a property, it is important to have a good understanding of what will and won’t affect your property taxes.
This is important because you will need to be aware of whether or not you are paying the correct amount. Whether this is more or less than expected, it is important that the amount is correct.
In addition to this, when you add or remove things from your home, this can often cause the value to either increase, or decrease, depending on the work you have had carried out. This is why it is important to have these aspects checked, and your house revalued.
In this article, we will be focusing specifically on solar panels and whether or not they increase property taxes and its value. We will also be discussing the benefits solar panels can have on your home.
What Are Solar Panels?
Solar panels are a type of renewable energy source that you can have installed on the roof of your home. They absorb and use rays of sunlight as a form of energy.
This energy is then changed into electricity and used to power your home. Solar energy can be used for both heating systems and for electricity.
As it is a form of renewable energy, it is clean and renewable. This means that it is far better for the environment, and allows you to rely less on “the grid”.
The majority of homes with solar panels will use a mixture of solar-powered energy and grid energy to power their homes.
Do Solar Panels Increase Property Taxes?
Given that solar panels are installed onto the roof of your home, and affect the amount of energy you need to use from the grid, it is only natural to wonder whether or not they increase property taxes.
When it comes to changing your home or property, this typically leads to an increase in property taxes. While this is frustrating, often, it is something that cannot be avoided. Home renovations will typically incur an increase, especially if you need a permit for the installation process.
You will need to have permission to install solar panels, and you will also need to take into account the construction and installation costs too.
As the solar panels will typically reside on the roof of your home, you will almost always need to seek permission in order to install these. We would always recommend checking this before installation.
Your application for the installation needs to be sent to an assessor’s office. From here they will take a closer look at the work that needs to be carried out, to give you a better understanding of the costs. They will also make you aware of any property tax increases that may likely occur.
In general, solar panels are accepted with no issues, as they are better for the environment, and they are something you have invested in.
However, if they are being installed somewhere other than your roof, then you may need additional permits, such as geotechnical permits, to approve this installation.
The great thing about solar panels is that many states will not increase property taxes heavily for this kind of installation. This is to encourage people to use renewable energy where possible.
While it is not always guaranteed, some states do offer discounts or exemptions on these types of installations, given that they help to improve the environment.
As a result of this, it is always best to check the laws within each individual state before you purchase solar panels.
Do Solar Panels Increase Property Value?
In the vast majority of cases, solar panels certainly do increase the value of a property. When you take into consideration the cost of purchase, the planning permissions needed, and the installation costs, this will not come as much of a surprise.
Solar panels are certainly something that more people are looking for when purchasing a property, and as a result this will often increase the value of the property.
If a buyer is environmentally conscious, and is looking to save a significant amount on their heating or electricity bills, then they will be more likely to purchase a property that already has the benefits of solar panels.
However, it is not always as straightforward as this, and in some instances, the solar panels may affect the property value negatively. This is why it is so important to carry out the correct research when you are thinking of purchasing solar panels.
Some potential buyers may think that the solar panels are an eyesore, and would rather a property without them. In addition to this, there is a level of maintenance that is needed with solar panels. While this is minimal, it will still incur costs, which is something that some buyers will want to avoid.
Even so, on the whole, installing solar panels on your property is worth considering. They last for around 25 years, and will significantly help when it comes to reducing your heating and water bills. They are better for the environment, and are seen as valuable to many people.
Summary
We hope you have found this article useful. As you can see, in the vast majority of cases, solar panels will help to increase the property value of the home.
This is great if you are selling to someone environmentally conscious, and in an area where renewable energy is encouraged.
However, in a small portion of cases, they can cause a decrease in property value if they are something the purchaser does not want to maintain and use.
Solar panels are expensive to purchase, and install, but in many cases, states will offer a tax exemption or reduction if they are installed.
It is important to look into your specific state to see their stances on solar panels. This is because the rules and the taxing systems will differ slightly. Even so, in the majority of cases, they shouldn’t increase the property tax too heavily.
