Yes, on average. Studies of home sales find that owned solar panels add roughly 3 % to 4 % to a home’s selling price, though the premium varies widely by market, system and how the panels are financed. On a $400,000 home, that is about $12,000 to $16,000, which is less than the cost of a typical 7 kW system but not far from it.
Leased systems, shaded roofs and old equipment can add little or nothing. This guide explains what the research says, how appraisers treat solar, what raises or lowers the premium and what to do if you plan to sell.
Key takeaways
- Owned solar usually adds value. The best-known studies put the premium at about 3–4 % of the sale price, or around $4 per watt in one major government-lab study.
- Leased or PPA systems rarely add value. Buyers may have to take over the contract, and many don’t want to.
- The premium rarely covers the full cost of the system. The savings you collect while you own the system matter just as much.
- Premiums vary by market. They tend to be larger where electricity is expensive and where buyers already know solar well.
- Documents matter. Permits, warranties, production records and a clear loan payoff help the sale and the appraisal.
- Many states exempt added solar value from property taxes. That means a higher value doesn’t always raise your tax bill.
What the research says
Two widely cited analyses give a sense of the premium. Both are older than the 2026 market, so treat them as guides rather than guarantees. Check the original sources before you quote them in your own materials.
Lawrence Berkeley National Laboratory (2015)
Researchers at Lawrence Berkeley National Laboratory looked at tens of thousands of home sales across several states, including several thousand homes with solar. They found that owned systems carried a premium of about $4 per watt. For the average system in the study (around 3.6 kW), that was about $15,000. The premium appeared in both new and existing homes.
Zillow (2019)
A Zillow analysis of home sales found that homes with solar panels sold for about 4.1 % more than comparable homes without them, which was roughly $9,000 on the median US home at the time. The premium varied by market, and some metro areas showed higher percentages.
How to read these results
- Both studies looked at owned systems. They don’t show that leased systems add value.
- They measure sale prices in past markets. Prices per watt, electricity rates and buyer attitudes have changed.
- They show averages. An individual house can sell for more or less.
- Neither study guarantees that a given system will recover its cost.
What a 3–4 % premium looks like in dollars
| Home value | 3 % premium | 4 % premium |
|---|---|---|
| $300,000 | $9,000 | $12,000 |
| $400,000 | $12,000 | $16,000 |
| $500,000 | $15,000 | $20,000 |
| $700,000 | $21,000 | $28,000 |
A typical 7 kW system costs about $18,200 to $23,100 before incentives in 2026. The percentage premium means the more valuable the home, the more of the system cost the premium may cover.
Owned vs. leased vs. financed
How you pay for the system affects what a buyer sees.
| Ownership type | Effect on resale | What to know |
|---|---|---|
| Paid in cash | Best | Buyers see an asset with no strings attached |
| Owned with a solar loan | Good | The loan must be paid off or transferred at closing |
| Leased | Weak or neutral | The buyer must assume the lease and qualify for it |
| Power purchase agreement (PPA) | Weak or neutral | Same issues as a lease, plus a contract tied to production |
| PACE financing | Complicated | Repaid through property taxes, which can limit buyers and lenders |
If you have a lease or PPA, ask the provider early about transfer fees, buyer credit requirements and the buyout price. Some buyers walk away from a lease transfer, and some mortgage lenders restrict loans on homes with certain solar contracts.
What affects how much value solar adds
Electricity prices
In high-rate markets, buyers value lower bills more. A system in Massachusetts or California saves more per kilowatt-hour than one in a low-rate state, and the premium tends to reflect that.
System size and age
Larger systems can add more total value, though not always in proportion. Older systems have less remaining warranty and production, so buyers pay less for them. A five-year-old system usually brings a larger premium than a fifteen-year-old one.
Local buyer awareness
In areas where many homes have solar, buyers understand it and agents market it well. Where solar is rare, some buyers see it as a risk or an oddity.
Condition and appearance
A neat installation with a newer roof is an asset. Shaded or poorly aligned panels, a roof near the end of its life or visible wear reduce the value.
Transferable warranties
Panel warranties of 25 years, inverter warranties and workmanship coverage should transfer to the buyer. A buyer who gets documentation is more confident.
Net metering rules
If the next owner keeps the same favorable net metering terms, the system is worth more. If grandfathered terms end when the home is sold, the value drops. Check your utility’s policy.
How appraisers treat solar
Lenders rely on appraisals, and appraisers don’t always know how to value solar. Some use the income approach (the present value of future savings), others compare similar sales and some use cost-based estimates.
Several steps improve the chance that solar is valued correctly:
- Provide documentation. Give the appraiser the installation contract, permits, interconnection approval, warranty papers and 12 months of production data.
- Show the savings. Provide your utility bills before and after solar.
- Use a solar-aware appraiser. Ask whether the appraiser has experience with solar, and consider requesting one with training in valuing green and energy-efficient features.
- Use the energy addendum. The Appraisal Institute’s residential green and energy-efficient addendum helps appraisers record features such as solar.
- Point to comparable sales. If similar homes with solar have sold nearby, give the data to your agent.
Solar owners can also ask whether the listing platform supports solar fields so buyers can find the home.
Will solar raise your property taxes?
Often not. Many states have laws that exempt the added value of a solar system from property tax assessment. Others offer partial exemptions or time-limited ones. Rules vary by state and sometimes by county. Check with your local assessor before you install, and ask installers whether your area has an exemption.
Does the added value make solar worth it?
The resale premium is only one part of the return. The other part is the electricity savings you collect while you own the home. Consider a home worth $450,000 and a system that cost $22,000 and saves $1,900 a year.
| Years owned | Savings collected | Premium needed to recover the $22,000 cost | As a share of a $450,000 home |
|---|---|---|---|
| 5 years | $9,500 | $12,500 | 2.8 % |
| 8 years | $15,200 | $6,800 | 1.5 % |
| 12 years | $22,800 | None | 0 % |
If the home sells after eight years and the system adds 3 % of its value ($13,500), the total return is $15,200 + $13,500 = $28,700. That is $6,700 above the $22,000 cost. If buyers don’t pay any premium, the owner ends up $6,800 behind. The premium is not guaranteed, so the owner who stays longest has the least risk.
How to protect and maximize resale value
- Own the system. Cash or a standard solar loan gives the best resale position.
- Keep a documents folder. Include permits, inspection sign-offs, interconnection letters, warranties, manuals and monitoring access.
- Track production and savings. A year of production data and utility bills shows buyers what the system delivers.
- Maintain the system. Clean the panels as needed, fix problems quickly and keep inverter alerts under control.
- Check your roof. Replace an aging roof before or during the installation so buyers don’t worry about panel removal.
- Confirm net metering transfer. Ask your utility whether the current terms stay with the home.
- Price the home with solar in mind. Ask your agent to value it using comparable solar sales, not just general comps.
- Highlight solar in the listing. Mention system size, age, warranties, average bills and monitoring app access.
When solar may not add value
- The system is leased and the buyer doesn’t want the contract.
- The panels are old, damaged or underperforming.
- The roof will need replacement soon.
- The local market has little demand for solar, or electricity is cheap.
- The loan or lien on the system complicates the closing.
- Net metering rules change and make exports worth less to the next owner.
Frequently asked questions
How much value does solar add to a home?
Studies suggest about 3–4 % of the sale price on average for owned systems, or around $4 per watt in one major study. The real figure depends on your market, your system and your buyer.
Do leased solar panels increase home value?
Usually not. A lease or PPA is a contract the buyer must take over, so it can be a hurdle at sale.
Will solar raise my property taxes?
In many states, no, because the added value is exempt from assessment. Check the rules for your state and county.
Can I sell my house if I have a solar loan?
Yes. The loan can be paid off from the sale proceeds or, with lender approval, transferred to the buyer. Ask your lender about early payoff terms.
Do appraisers count solar panels?
Many do, if the system is owned and well documented. Provide permits, warranty papers, production data and bills so the appraiser has what they need.
Bottom line
Solar panels generally increase home value when you own them, and the best evidence points to a premium of around 3 to 4 percent. That premium is helpful but not a guaranteed return on the system’s cost. Combine it with your electricity savings, keep good records and avoid contracts that complicate a sale.