Beyond monthly electric bill savings, one of the most common questions homeowners ask before going solar is whether it will help or hurt their home's resale value. The research on this is fairly consistent: owned solar systems tend to add value, though the size of the premium depends heavily on local electricity prices and how the system is financed.
What the Research Shows
- Zillow (2019 analysis): Homes with solar panels sold for approximately 4.1% moreon average than comparable homes without solar, across the US markets studied.
- Lawrence Berkeley National Laboratory (US Dept. of Energy): A multi-state study found buyers were willing to pay roughly $4 per watt of installed solar capacity — meaning a 6 kW system (a common residential size) could add close to $24,000 to a sale price in high-electricity-cost markets.
- Zillow (2023 consumer survey): 80% of prospective home buyers said energy-efficient features, including solar, were “very” or “somewhat” desirable in a home purchase.
Ownership Status Matters More Than Anything Else
The single biggest factor in whether solar adds value is how the system was financed:
| Ownership Type | Effect on Resale |
|---|---|
| Owned outright (cash or paid-off loan) | Adds measurable value — treated like any other home improvement |
| Solar loan (still being paid off) | Generally neutral to positive if the buyer assumes or the seller pays off the loan at closing |
| Leased system / PPA | Can complicate or slow down a sale — buyers must qualify to take over the lease, or the seller must buy it out |
Leased systems and Power Purchase Agreements (PPAs) are the most common source of friction in solar home sales. Because the buyer doesn't own the panels, they must either qualify to assume the existing lease payments or the seller has to pay to buy out the remaining contract before closing — both of which can slow down or complicate a transaction compared to a simple owned system.
Which Markets See the Biggest Premium
The value premium tracks closely with local electricity rates — the more expensive electricity is in a region, the more valuable the ability to generate your own becomes to a buyer:
- High-value markets: California, Hawaii, Massachusetts, New York, New Jersey — all have electricity rates well above the national average, making solar a more visible savings feature to buyers.
- Lower-premium markets: States with cheap electricity (e.g., Washington, parts of the Pacific Northwest with low hydro rates) see a smaller resale bump, since the monthly savings buyers are “buying into” are smaller.
Practical Tips If You Plan to Sell Eventually
- Buy rather than lease if resale matters to you. An owned system is the cleanest sale scenario and the one most consistently linked to a price premium in research.
- Keep your documentation. Installation records, warranty paperwork, and production history make it easier for an appraiser or buyer to verify the system's value.
- Get a solar-specific appraisal add-on if refinancing or selling. Many appraisers now use the PV Value® tool, developed with Department of Energy backing, specifically to price solar systems into home appraisals.
Frequently Asked Questions
Does a leased solar system hurt my home's value?
A lease rarely reduces value directly, but it can make the home harder to sell quickly, since buyers need to qualify to assume the lease or the seller needs to pay it off at closing. Some sellers choose to pay off the remaining lease balance before listing specifically to avoid this friction.
Do solar panels affect property taxes?
Many US states offer a property tax exemption for the added value of a solar installation, meaning your property taxes are not reassessed upward just because you added panels. Rules vary by state, so it is worth checking your local exemption before installing.