Sachin Badole and Taky Tahmid - SMSP Fall Seminar Series 2026

Sachin Badole and Taky Tahmid

Abstract for Sachin's Talk: This paper estimates the impact of residential rooftop solar systems on housing resale prices in Delaware and examines heterogeneity across system attributes. We use single-family home transactions and solar installation data to estimate solar price premiums using both hedonic and repeat-sales models. We find that homes sold with solar systems have an average price premium of 7.6% ($22,379) when not controlling for recent home renovations, and 5.6% ($16,613) when controlling for them. These premiums exceed the average net installation cost of solar systems in Delaware ($14,781), implying that, on average, homeowners recover approximately 112%–125% of their solar investment upon resale. Capitalization is strongest within the first three years after installation and declines thereafter. Solar value does not disappear with age; rather, it shifts from capitalized resale value to realized electricity bill savings. We find that federal Investment Tax Credits and state incentives significantly accelerate investment recovery, whereas removing these incentives delays cost recovery by approximately ten years. The findings provide new evidence on solar capitalization in a low-adoption market and offer insights for homeowners, policymakers, and solar market stakeholders.

Abstract for Taky's Talk: A day spent crabbing or clamming has value beyond the catch people bring home. This study estimates that recreational value using a survey of Delaware fishing-license holders about outings taken in 2025. Respondents considered whether they would still have gone if the outing had cost more. Their answers yield lower-bound average values of approximately $66 per crabbing day and $58 per clamming day. This seminar will explain how we estimate these values and how respondents’ certainty affects the results. It will also discuss their use in coastal management, including assessments of closures, habitat improvements, and recreational access. Applying the estimates to a particular project requires evidence on how many comparable recreation days the project would add or remove.