PV stands for photovoltaics – using solar panels to convert light, photons, from the sun to electric power, volts. In about one hour the sunlight falling on the earth’s surface provides all the energy that mankind uses in a year. The challenge is converting the sun’s energy into a form that can be economically used.

And the question for those of us in the building business is, can we make money from that? The National Association of Home Builders (NAHB) thinks maybe we can.

Buyers want and will pay more for an energy efficient home.

In a 2013 survey, NAHB found that 91% of recent and prospective home buyers wanted an energy-efficient Energy Star rated home. That same study reported that 73% of buyers said that “the projected utility costs of a home would influence a purchasing decision” and were willing on average to pay an additional $7,095 in the price of a home that saved them $1,000 per year in utility costs.

Buyers pay more for new homes with PV

According to a study reported in NAHB’s February 3, 2015 Eye On Housing publication, new home prices on average are $3.58 / watt (of PV system size) higher for new homes with PV systems. But perhaps more important to builders than the average premium value, is that the price premium per watt for small systems is higher than the premium per watt for large systems. The take away lesson here is that builders get more bang for the buck for smaller PV systems.

Buyers pay even more for resale homes with PV

It is important for sales people to be sure that new home prospects know that buyers pay even more of a premium for resale homes that have PV than they pay for new homes with PV. Resale homes with PV systems command a price premium of $4.51 / watt, which remains fairly constant as the age of the house becomes greater.

Dante Archangeli is the owner of Tucson Artisan Builders LLC, has been a Southern Arizona Home Builders Association member since 2000, and a green builder for longer than that. He also blogs about sustainability at GoodNewsForNature.com and terrain.org/author/darchangeli/.