Solar on a home not only saves energy, but added a 30 percent price premium in November, according to Rob Madden, Green Leaf Realty.
November sales data for resale solar homes hit a median price of nearly $250,000 in November, compared to a non-solar home median of $192,000. The number of solar homes selling in November mirrored the market, so while the properties garner a bigger price tag, the inclusion of solar did not catalyze more closings.
"The price difference may not be a direct result of the solar, but it shows that solar-powered homes have more value," said Mick Dalrymple, senior sustainability scientist at the Walton Sustainability Solutions Initiative at the Arizona State University School of Sustainability. A more head-to-head appraisal may be necessary to get an exact number.
Homeowners with photovoltaic systems shouldn't be counting on an extra $50,000. Although the raw data seems to support the premium price, there are a lot of factors not part of the study. Location of solar homes sold during the month, versus neighborhoods for all homes sold is one factor. Another is that solar homes tend to be in higher-priced neighborhoods because of the cost and credit requirements to buy or lease a system.
There have been studies showing that solar homes command premium prices, although not yet in Arizona. Dalrymple said that one study in California showed that the higher prices paid for solar homes was more than the cost of the system installation.
Madden tracked the data from Arizona Regional Multiple Listing Service. During the month, 81 solar homes sold, with 33 carrying leased photovoltaic systems and 48 owned systems. Madden said November sales are typically soft.
"We typically see a slowdown in sales activity during the holiday season so it was not a big surprise to see a drop in sales activity for the month of November," he said.
The November median price for a solar home rose 8.4 percent from 2013. Madden said his findings are that solar home values are consistently higher regardless of age or location.
There are tools to put an actual price on the difference solar power makes in pricing home. Dalrymple said the difference can be calculated with an income approach or the "green appraisal addendum."
The income approach is similar to the calculations used on rental properties to determine the cash flow. The addendum — which requires special training for appraisers and real estate professionals — examines the value of all green energy upgrades to a home and assigns a value added to the price of house.
A major factor is time-on-market.
"The average days it took a solar home to sell dropped to 85 days," he said. In October, the average was 95 days. The November time frame was 4.5 percent faster for solar than non-solar homes.
There were 156 new solar home listings in the Phoenix area in November, down 8.2 percent from October and continuing declines seen since July 2014. West Valley communities Sun City, Sun City West and the city of Surprise were the dominate location for the solar sales, followed by cities of Litchfield Park, Glendale, and the West Phoenix submarket.