Do Solar Panels Increase Home Value? Real Estate Data (2026)

Do Solar Panels Increase Home Value?

Yes! Multiple studies confirm that solar panels increase home resale value. According to the Lawrence Berkeley National Laboratory (LBNL), homes with solar panels sell for about 3-4% more than comparable non-solar homes.

What the Data Says

Lawrence Berkeley National Laboratory (2023 Study)

LBNL analyzed 22,000 solar home sales across 8 states and found:

• Solar homes sold for $3.78 per watt more than non-solar homes
• For a 6 kW system, that's $22,680 in added value
• The premium was consistent across states (CA, CO, CT, MA, MD, NC, NJ, NY)

Zillow Research (2021)

Zillow found that homes with solar panels sold for 4.1% more on average than comparable homes without solar.

SunPower Internal Data (2024)

SunPower analyzed their customer sales and found solar homes sold 20 days faster than non-solar homes.

Why Do Solar Panels Increase Value?

1. Lower utility bills: Buyers value the monthly electric bill savings.
2. Transferable warranties: Most solar panel warranties (25 years) transfer to new owners.
3. Environmental appeal: Eco-conscious buyers willing to pay premium for green homes.
4. Energy independence: With rising utility rates, solar homes are more attractive.

Factors That Affect Value Increase

1. Owned vs. Leased Panels

Owned panels: Increase home value significantly (3-4% premium).

Leased panels: May decrease home value or complicate sale because buyer must assume the lease. Some buyers are reluctant to take over a 15-20 year lease.

2. System Age

Newer systems (0-5 years old) add more value because buyers get more years of production. Older systems (15+ years) add less value but still command a premium.

3. Location

Solar premiums are higher in states with:

• High electricity rates (CA, NY, MA, CT)
• Strong solar incentives (SRECs in NJ, MA)
• Environmentally conscious buyers (CA, OR, WA)

4. Electricity Rate Trends

If utility rates are rising rapidly in your area, solar homes become more valuable because the savings are larger.

How Appraisers Value Solar

Appraisers use three methods to value solar:

1. Cost approach: Add the cost of a new system (adjusted for age/depreciation) to the home value.
2. Income approach: Calculate the present value of future electric bill savings. For example, if solar saves $100/month and the buyer's mortgage rate is 6%, the value added is about $14,000 ($100 × 12 months / 0.06).
3. Comparable sales approach: Compare with recent sales of similar solar homes in the area.

The income approach usually gives the highest value, but not all appraisers use it. Ask your appraiser to consider all three methods.

Tips for Selling a Solar Home

1. Transfer warranties: Contact your installer and panel/inverter manufacturers to transfer warranties to the buyer.
2. Provide documentation: Give buyers the contract, permits, warranty docs, and production data.
3. Highlight savings: Show buyers your electric bills before and after solar.
4. Certify the system: Some installers offer a "system certification" for home sales, which gives buyers peace of mind.
5. Consider buying out a lease: If you have a lease, buying it out before selling can increase your home's value and make it easier to sell.

Conclusion

Solar panels are a smart investment that not only saves you money while you live in the home but also increases its resale value when you sell. With a 3-4% premium on average, solar can pay for itself twice: once through electric bill savings, and again through increased home value.