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Spring is just around the corner. To be exact: 62 days, 18 hours, and 2 minutes from the time this article was posted. With April through June usually being the busiest time for builders, chances are that you’re considering that brand, new kitchen you’ve always wanted.
Here’s a little inspiration for that:
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According to Remodeling magazine, the national average cost to remodel a kitchen is a whopping $54,909. As other smart consumers would, you’re probably wondering how much this improvement adds to the value of your home.
It’s not as easy as saying that a renovated kitchen that costs X amount will increase your home value by X amount. According to the 2018 Cost vs. Value Report, you can expect to recoup about 60% of the costs for a major kitchen remodel. Not too shabby, if you were to ask us.
So how does this compare to investing in solar?
To find the answer, let’s look to the experts at Lawrence Berkeley National Laboratory (LBNL), a research laboratory funded by the U.S. Department of Energy. LBNL has the most comprehensive study to date when it comes to solar’s effect on property value. Researchers found that solar consistently adds value to homes across a variety of states, housing markets, and home types.
Let’s get a little more specific, using a standard 6-kilowatt (kW) system as an example. The average cost of a 6kW system is $22,000. With tax breaks, incentives, and tax credits, you can expect to pay approximately $15,000 — depending on where you live. LBNL says that homebuyers are willing to pay $4 per watt of installed solar capacity. This translates as a $24,000 increase to your home’s resale value.
With solar, you’re recouping system costs and walking away with money on top of it. The chart below further illustrates the comparison:
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So we’re looking at 64.9% versus 154.4% … that’s more than double! The choice is yours, and we’d love to help if you choose the smarter investment. If you do end up splurging on a new kitchen, it’s all good, too — at least your dinner guests will be impressed!
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