Solar adding value

[Fernando]

I asked Gemini if having a solar system add value to a home in my area.

Valuation Principles in California

• The Cost vs. Value Rule: Real estate appraisal guidelines (such as those from the Appraisal Foundation and Lawrence Berkeley National Laboratory) establish that solar systems do not add dollar-for-dollar value based on initial installation cost.
• The California Premium: Studies from Lawrence Berkeley National Laboratory and real estate transaction data show that owned solar systems in California typically add a market premium of roughly 3% to 5% to a home's overall value, or approximately $3 to $4 per watt of installed capacity.
• Age and Depreciation: A system installed in October 2023 has roughly three years of age. While physical and functional depreciation applies slightly, solar panels retain strong market value because they still possess over 20 years of remaining performance warranty and deliver immediate utility bill offsets under high California electricity rates (such as PG&E rates in South San Francisco).