Do Solar Panels Increase Home Value?
Do solar panels increase home value?
Yes — for most homes, owned solar panels add value. Multiple housing-market studies have found that buyers pay a premium for a home with a paid-off solar system, and that such homes tend to sell faster than comparable ones without solar. The effect isn't unlimited or guaranteed, but the direction is consistent: solar is treated as an upgrade that lowers the running cost of the house.
The single biggest variable is ownership. A system you own outright is an asset that transfers cleanly. A leased system, or one on a power purchase agreement, is a contract the buyer must take over — and that can slow or complicate a sale.
How much value do they add?
Research generally points to a premium in the low single digits as a share of home value — often cited around 4%, though it varies by market, system size and local energy prices. Because it's a percentage, the dollar figure scales with the home's price.
Illustrative: a ~4% premium scales with home price. Actual impact varies by market, system and local energy prices.
| Home price | Estimated value added (USD) |
|---|---|
| $300k | 12,000 $ |
| $400k | 16,000 $ |
| $500k | 20,000 $ |
| $600k | 24,000 $ |
Source: Lawrence Berkeley National Laboratory — Selling Into the Sun
Treat these as indicative, not a promise. The premium is largest where electricity is expensive (so the savings are bigger) and where buyers are familiar with solar.
Owned vs leased: the critical difference
This is where deals succeed or stall:
- Owned (cash or paid-off loan) — the panels convey with the house as a value-adding feature. Cleanest scenario for resale.
- Active loan — you typically pay it off at closing from the sale proceeds, then it conveys like an owned system.
- Leased / PPA — the buyer must qualify for and assume the contract, or you buy it out before selling. Some buyers walk away rather than take on payments.
If you're going solar partly for resale value, owning the system matters.
Why buyers pay more for solar
Buyers aren't paying for panels — they're paying for lower electricity bills. A home that generates its own power has a lower cost of ownership, which is increasingly attractive as energy prices rise. Solar also signals a modern, well-maintained home and appeals to environmentally minded buyers. The combination is what supports a price premium.
Do solar homes sell faster?
Often, yes. Studies have observed shorter time on market for solar homes, all else equal. A lower projected energy bill is a concrete selling point in listings, and it differentiates the property from otherwise similar homes nearby.
What affects the added value
- Ownership status — owned beats leased, every time.
- System age and condition — newer systems with remaining warranty add more.
- Local energy prices — bigger savings → bigger premium.
- System size relative to the home's use — a well-sized system reads as practical.
- Buyer awareness — markets familiar with solar reward it more.
How appraisers value solar
Appraisers increasingly account for owned solar as a value-adding feature, often using income-based methods that estimate the present value of future energy savings. For the system to count, it generally needs to be owned and properly documented. Keep your invoices, warranty paperwork and production records — they help the appraisal and reassure buyers.
Will you recoup the full cost?
Not necessarily the entire sticker price — but you don't have to. While you own the home you're already banking the energy savings, so resale value is a bonus on top of years of lower bills. The right way to think about it: solar pays you back primarily through savings over time, with a resale premium as an added return rather than the main one.
FAQ
Do solar panels always increase value? Owned systems usually do; leased systems may not, and can even deter some buyers who don't want to assume the contract.
How much do solar panels add to home value? Studies suggest roughly a low-single-digit percentage of the home's value, varying by market and energy prices.
Do I need to tell buyers about a lease? Yes — any lease or PPA must be disclosed and transferred or bought out as part of the sale.
Does adding solar raise my property taxes? Many places offer property-tax exemptions for solar so your assessment doesn't rise; this varies by location.
How solar compares to other upgrades
Unlike a kitchen or bathroom remodel, solar pays you back while you live there through lower bills, then may add resale value on top. Most cosmetic renovations only return part of their cost at sale and save you nothing in the meantime. That dual return — ongoing savings plus a potential premium — is what makes solar stand out among home improvements, provided the system is owned and in good condition. It's also one of the few upgrades a buyer can immediately quantify, because the energy savings show up on a bill they can see.
Bottom line
Owned solar generally adds value and can help a home sell faster, with studies pointing to a premium around the low single digits of home value. Leased systems are the exception and need careful handling at sale. Either way, the core return is the energy savings you collect while living there — resale value is the cherry on top.
Last updated June 2026. Informational only — resale impact varies by market; consult a local real-estate professional.