How Solar Panels Affect Your Home's Resale Value

Published March 14, 2026  ·  6 min read

The Bottom Line Up Front

If you own your solar panels outright, installing them is one of the few home improvements that can pay for itself — twice. First through lower electricity bills, and second through a higher sale price when you decide to move. The data on this has gotten stronger every year, and the 2025 numbers are the most convincing yet.

But the story isn't the same for everyone. Where you live, how you financed your system, and the age of your panels all make a real difference. Let's dig in.

What the Research Shows

The most widely cited starting point is a 2019 Zillow study that found solar homes sold for 4.1% more on average. That was a big number at the time. But it turns out the market has grown even more favorable toward solar since then.

A 2025 study by SolarReviews looked at over 400 recently sold homes across the U.S. and found that solar homes sold for 6.9% more than comparable non-solar homes. That works out to about $29,000 extra on a median-priced home — and the average solar installation costs around $19,000. That's roughly a $10,000 gain on day one, before you've saved a single dollar on your electricity bill.

A separate 2025 study by SolarInsure analyzed 5,000 California home sales and found a similar range — 5% to 10% more for homes with owned solar systems. California is the country's largest solar market, so this data carries real weight.

The National Renewable Energy Laboratory (NREL) also found that solar homes in California sold 20% faster than comparable non-solar homes — a big deal if you need to move quickly.

Why Buyers Are Willing to Pay More

The short answer: lower bills and peace of mind. According to the 2024 National Association of Realtors Sustainability Report, 44% of homebuyers say utility costs are an important factor in their purchase decision, and 57% of real estate agents say promoting energy-efficient features helps sell homes.

A solar system with 25+ years of warranties left on it is basically a long-term utility bill discount baked into the purchase price. Buyers know it, and they'll pay for it.

There's also a growing group of buyers who specifically seek out solar homes. As EnergySage reports, solar has shifted from a niche upgrade to a standard feature that many buyers now expect in certain markets.

The Big Exception: Leased Panels

Here's the part many homeowners miss: leased solar panels and power purchase agreements (PPAs) do not reliably add value to your home — and they can actually make it harder to sell.

When solar panels are leased, you don't own them. You're essentially renting them from a solar company, usually under a 20–25 year contract. When you sell your home, the new buyer has to either take over that contract or you have to buy out the lease — neither of which is straightforward.

The SolarInsure study found that homes with leased systems saw no consistent increase in sale price. Some buyers walk away entirely rather than deal with the paperwork. If you're thinking about solar and eventually plan to sell, owning your system outright (or through a solar loan) is the smarter path.

Does Location Change the Math?

Yes, significantly. States with high electricity rates give solar more financial value — which makes buyers willing to pay more for it. According to Aurora Solar's 2025 research, the states where solar adds the most home value include:

• New Jersey — up to 9.9% increase
• Pennsylvania — up to 4.9%
• North Carolina — up to 4.8%
• Louisiana — up to 4.9%
• Hawaii — consistently high due to extremely high utility rates

In lower-electricity-cost states, or in markets where solar is still rare, the premium may be smaller. A few states — like Alabama — have even seen non-solar homes outperform solar homes in certain data sets, though this is the exception rather than the rule.

What About Property Taxes?

Adding value to your home can raise your property taxes. But there's good news: 29 states currently offer property tax exemptions for solar installations, meaning your tax bill won't go up even if your home's assessed value does. Check your state's rules before you install.

How to Maximize Your Resale Value

If selling your home someday is part of the plan, here are the factors that tend to produce the biggest solar premium:

• Own your system outright — cash or a solar loan, not a lease or PPA
• Keep your documentation — warranty papers, permits, and utility bills showing savings all help buyers feel confident
• Maintain the system — clean panels and a functioning inverter signal to buyers that the system is well cared for
• Install in a high-rate state — the financial case is strongest where electricity is expensive
• Newer systems add more value — if your panels are 15+ years old, the premium may be smaller than with a new installation

The Bottom Line

Solar panels are one of the rare home improvements where you can reasonably expect to get your money back — and then some. The research is consistent: owned solar systems add real, measurable value to homes, and that value has grown as solar has gone mainstream.

Before you start getting quotes, it's worth checking whether your home is a good solar candidate in the first place. Our free pre-installation checklist covers the six areas — roof, sun exposure, electricity bill, future plans, HOA rules, and electrical panel — that determine whether solar makes sense for your home. Once you've worked through it, our free Solar ROI Calculator can estimate your payback period, 20-year savings, and environmental impact in under a minute.