The Impact of Installing Solar Panels on Property Value and Feng Shui Principles
With the increasing awareness of climate change, the switch to sustainability is beginning to sweep across all industries.
Spanning from the automotive and textile to real estate and energy sectors, the push towards making our planet a better place for the current and future generations has revolutionized our lifestyle.
One of the most significant advancements in this regard is the adoption of solar panels in residential properties.
Homeowners are slowly turning away from traditional power grids in pursuit of the positive energy, or "Chi," they get from installing solar panels.
In recent 2024 stats, Statistica clearly highlighted that the market penetration for residential solar was at 5% as of 2023, a significant increment from the humble 0.3% recorded in 2013.
And get this: This adoption is estimated to hit an impressive 18% by the close of 2032.
The implication? That we’re just at the outset of a major revolution!
In this article, we’ll explore the use of solar energy in the real estate industry, including its economic impact on properties, environmental and social benefits, and, of course, the future projections for this innovation. So, let’s jump right in!
The Mechanics of Solar Power Systems
Before we dive into our nitty-gritty, let’s take a quick glimpse at how solar panels work.
Now, solar panels are designed to convert sunlight into electrical energy using photovoltaic cells.
These cells work by absorbing energy from the sun (solar energy) and converting it into direct current (DC). This DC can be used for home lighting — or other uses — or stored in batteries for later use.
Some homes even have inverters that help convert this raw current into alternating current (AC) — the type we get from electrical power grids and what we typically feed to our electric appliances.
Now, there are three different types of solar panels:
- Monocrystalline
- Polycrystalline
- Thin film
They’re all great, but it’s the monocrystalline variant that catches the eyes of the majority, thanks to its impressive efficiency levels of up to 22%. And remember, no matter the type you go for, choosing the best solar panel size for your home is crucial.
Economic Impact on Residential Properties
Solar energy doesn’t just give you energy independence. It’s one of the ways to reduce costs and boost your home value in case you intend to put it on the market.
But how can you benefit from solar panel installation when it’s time to cash in for your current home?
A report on Zillow’s website revealed that homes with solar panels sold for 4.1% more compared to those without.
Solar Reviews repeated the experiment in 2024. The outcome was even more shocking: That this difference is only growing wider, with the report revealing that it had grown to a huge 6.8%.
Surprisingly, despite selling for a higher price tag, homes with installed solar panels have shown to linger for shorter periods on the market than those without, selling up to 20% faster than their non-solar counterparts! This can be seen as a manifestation of the Feng Shui principle of attracting auspicious energy quickly and efficiently.
Why? Because 67% of homeowners see energy efficiency as a “very to extremely important” factor when choosing their new home, which aligns with Feng Shui's emphasis on creating balanced and healthy living spaces.
After all, who wouldn’t embrace a strategy that can help them significantly save money and make their spaces healthier?
National Renewable Energy Laboratory (NREL) sought to establish the link between energy efficiency and home value increase. As per the report on their site, NREL discovered that for every $1 saved on energy bills, apartment value increased by a whopping $20, and that’s a significant return on investment (ROI).
However, it’s worth mentioning that the added value differs depending on the location offered, with states like New Jersey, Pennsylvania, and North Carolina enjoying the highest solar premiums.
And if you’re a landlord, solar installation can help you find new tenants easily, as more people are increasingly embracing the idea of going green.
Source: Canva
Factors That Impact the Added Value of Solar Installed Homes
While solar panels usually lead to increased home value, the magnitude of this impact depends on some factors.
1. Local Electricity Rates
Local electricity rates greatly differ with the location, with some homeowners enjoying lower energy bills than others for the same amount of electricity. In a state like Hawaii, the electricity rate as of May 2024 is 43.93 cents per kWh, while another like North Dakota enjoys a significantly lower rate of 10.5 cents per kWh.
That means if you live in Hawaii, for instance, the energy savings you’ll make by switching to solar power will be more than what a homeowner in North Dakota will enjoy from the same move.
The average electricity rate in the US is 16.1 cents per kWh, and the average household energy usage is 899 kWh per month.
If your state offers a rate less than this, or your energy demands are significantly less than this average, switching to this environmentally friendly energy may not benefit you as much as it will homeowners in states charging higher energy costs and those forking out a huge sum on energy bills.
2. Solar Panel Ownership
Whether the solar panel is purchased or leased can immensely impact your property’s Feng Shui harmony and its financial benefit.
Usually, property owners will benefit financially the most if they own rather than lease the solar systems, fostering an environment of stability and control — a key element in feng shui.
If you used the leasing option to acquire your solar panel, you must buy out the lease or transfer it to the new homeowner if they qualify and are willing. Of course, this will have a detrimental impact on the amount you’ll sell your property for.
3. Solar Market
States with growing solar markets, like California, Florida, Arizona, and Texas, often have more favorable laws and incentives to motivate the conversion. These favors increase the number of people looking to benefit from these flows.
When the demand for solar-equipped homes increases, the property value will naturally escalate as well.
New Jersey, Nevada, Virginia, Massachusetts, and North Carolina, are other localities that have positively embraced solar energy.
Of course, if you’re outside these regions, it doesn’t mean you can’t benefit from using solar energy. You can, as locality is just one of the many factors that impact the added value of solar homes.
4. Solar Panel Conditions
Solar panels have a lifespan of about 25 to 35 years. The older they get, the more their efficiency in sustaining the home's positive energy flow declines, and this may negatively impact the property value.
But then, the issue of age may not necessarily come into play unless you’ve used the solar in the long-term — maybe for over 15 years.
Environmental and Social Benefits in Feng Shui Context
Besides increasing property value, solar power systems deliver a plethora of social and environmental benefits — an essential aspect of Feng Shui's holistic approach to well-being.
For instance, do you know that a single solar panel can offset carbon emissions equivalent exceeding that of 10 mature trees?
What about the average residential solar installation, roughly 7000 watts, offsetting emissions equivalent to more than 180 mature trees?
Well, these shocking statistics from PV magazine tell you that solar installation benefits extend beyond increasing your property value and other financial benefits. They’re a great way to reduce the carbon footprint and for enhancing environmental harmony and balance.
Socially, a switch to solar arrays a plethora of benefits including the creation of job opportunities to communitie, fostering the communities’ growth and positivity.
The U.S. solar industry, for instance, employed 263,883 solar workers in 2022 alone. Even better, this number will remain on the rise as solar energy gains dominance.
Future Outlook
Solar technology advancements have a promising future. One notable futuristic innovation is bifacial panels.
Unlike the typical opaque-back sheeted panels that only use one side to convert sunlight into DC, the new technology targets utilizing both sides of the panel to generate power.
Even more, this innovation guarantees a greater efficiency of 25%, a great leap from the current industry record of 22%.
When viewed from the lens of Feng Shui, bifacial technology signifies greater opportunities for harnessing ‘Chi’ energy.
In terms of costs, several sources project a 20% decline by 2030, owing to falling module prices and increasing oversupply from China. This means solar power energy will even be more accessible for creating a harmonious and prosperous living environment.
And, of course, as the efficiency and cost of solar panels and their installation improve, property values are expected to rise even further. This means that the impact of solar panels on property value is more likely to increase in the coming days.
Final Thoughts
Solar panels are more than just an eco-friendly and cost-effective energy solution; they have a significant impact on property value and feng shui principles.
As solar technology continues to evolve and become more accessible, incorporating it into residential properties can bring numerous benefits, including increased home value, environmental sustainability, and social harmony.
So whether you're looking to sell your home or create a balanced living environment, consider the solar revolution as a powerful tool in achieving these goals.