If you’re considering solar panels, you’ve probably wondered whether they’ll increase your home’s resale value. The research is clear: solar panels are a genuine home value booster, and the numbers are impressive.
The Data on Solar and Home Values
Multiple studies confirm that solar panels increase property values. Research from Zillow found that homes with solar panels sold for an average of 4.1% more than comparable homes without solar. On a $400,000 home, that’s about $16,400 in added value.
A study by Lawrence Berkeley National Laboratory analyzed over 22,000 home sales and found that buyers were willing to pay a premium of approximately $4 per watt of installed solar capacity. For a typical 8 kW system, that translates to about $32,000 in added home value.
Why Buyers Pay More for Solar Homes
Homebuyers increasingly view solar as a desirable feature, similar to a renovated kitchen or energy-efficient windows. The appeal is practical: the new homeowner inherits a system that immediately reduces their electricity bills without having to go through the installation process themselves.
In markets with high electricity rates, the value premium tends to be even higher because the ongoing savings are more significant.
Owned vs Leased Solar: A Critical Distinction
Owned solar systems add the most value. The buyer gets a fully paid system with years of remaining warranty and no ongoing payments.
Leased systems or PPAs are more complicated. The lease must be transferred to the new buyer, who takes on the monthly payments. Some buyers view this as a liability rather than an asset. Leased systems may not add significant value — and in some cases, they can complicate or slow down a sale.
If resale value is important to you, buying your system (with cash or a loan) is the better strategy.
Do Solar Panels Increase Property Taxes?
In many states, no. Over 35 states have property tax exemptions for solar energy systems. This means your home’s assessed value increases, but you don’t pay additional property taxes on the solar equipment. Check your state’s specific policies.
How Appraisers Value Solar
Unfortunately, not all real estate appraisers are trained to properly value solar installations. The Appraisal Institute has developed guidelines, but implementation is uneven. To ensure your system is properly valued during a sale, provide the appraiser with documentation of your system specifications, installation cost, energy production data, and remaining warranty.
Making Your Solar Investment Count at Resale
Keep all documentation organized — purchase receipts, warranty information, production history, and maintenance records. A well-documented system gives buyers confidence. Highlight the annual savings in your listing, and make sure your real estate agent understands and can communicate the value of the solar installation.
