Do solar panels increase home value? Research suggests that homeowner-owned rooftop solar panels often increase resale value compared with otherwise similar homes without solar. However, there is no guaranteed national percentage, and leased or third-party-owned systems should not be valued the same way as panels owned by the seller. The premium depends on the local housing market, electricity prices, the solar system’s age and condition, and how ownership is documented.
For U.S. homeowners in 2026, the most useful answer comes from separating published research from your own likely resale result. A well-known Lawrence Berkeley National Laboratory study found an average solar-home sale premium of roughly $15,000 for a typical 3.6-kilowatt homeowner-owned system in its historical dataset. A newer California-focused industry study reported premiums of 5% to 10% for owned systems. Those figures describe different samples and time periods; neither should be presented as a guaranteed increase for every home sold today.
Quick Answer: How Much Value Do Solar Panels Add to a House?
Owned solar may add value, but the precise amount must be estimated from comparable recent local home sales and the system’s documented characteristics. The U.S. Department of Energy says purchasing a residential solar system will likely increase a home’s value and cites research showing buyers have paid premiums for homes with solar. Its discussion also distinguishes homeowner-owned systems from third-party-owned equipment.
| Evidence or ownership type | Finding | Important limitation |
|---|---|---|
| Berkeley Lab 2015 study | About $4 per installed watt, or $15,000 for an average 3.6-kW system | Historical transactions, not a 2026 quote |
| SolarInsure California study, published 2026 | Owned solar homes sold for 5%–10% more in the analyzed sample | California-focused industry research, not a national guarantee |
| Fully owned solar system | May contribute to appraised and resale value | Market evidence and system condition matter |
| Leased solar or PPA | No consistent premium in the cited California study | Fannie Mae does not include third-party-owned panels in appraised property value |
| Separately financed solar | Depends on financing and collateral terms | Not all financed panels qualify for appraisal value |
What Research Actually Says About Solar Panels and Home Value
Lawrence Berkeley National Laboratory: The $15,000 benchmark
In its 2015 Selling Into the Sun report, Lawrence Berkeley National Laboratory analyzed 22,822 home sales, including 3,951 homes with photovoltaic systems, across eight U.S. states. The transactions covered 2002 through 2013. Researchers found that buyers generally paid a premium for homeowner-owned solar, averaging about $4 per watt, equivalent to roughly $15,000 for the study’s average 3.6-kW system.
This was a major study, but it should not be treated as a live 2026 appraisal formula. Solar installation costs, electricity rates, financing, technology, and housing markets have changed since those sales occurred. Applying $4 per watt mechanically to a modern 10-kW array and promising a $40,000 increase would misuse the historical result. Berkeley Lab’s follow-up paired-sales research specifically cautioned that premiums depend on system and market characteristics.
Newer California evidence: 5% to 10% in one sample
A SolarInsure analysis published in October 2026 examined 5,000 California single-family home sales from 2020 through 2023. Its dataset included 2,350 homes with owned solar, 1,790 with third-party-owned solar, and 860 without solar. The company reported that homes with owned panels sold for 5% to 10% more than comparable homes without panels, while leased or PPA systems did not show a consistent premium.
This is useful recent evidence, but it is an industry-produced analysis of one state rather than a nationally representative causal estimate. California electricity costs, housing prices, solar adoption, and buyer expectations may differ substantially from those in other states. A seller in Ohio, Florida, Texas, or New York should not simply multiply their estimated home price by 10% and expect that amount at closing.
Why older and newer percentages are not interchangeable
A dollar-per-watt premium and a percentage-of-home-price premium answer different questions. The first relates added value to the size of the solar system; the second relates it to the total property sale price. A $15,000 premium on a $300,000 home is 5%, while the same premium on a $750,000 home is 2%. Neither calculation proves that a specific home’s panels created that premium.
Study design matters too. Researchers may compare homes across different time periods, neighborhoods, or ownership arrangements. Changes in interest rates, energy prices, and home features can influence observed sales prices. Treat published results as evidence that solar can add value, not as a substitute for a qualified local appraisal.
Owned Solar vs Leased Solar: The Most Important Difference
Whether you own the panels is often more important for resale value than the brand name on the modules. A cash-purchased, fully paid system can be part of the home’s physical assets and may be reflected in its sale price. A leased system or a power purchase agreement (PPA) usually belongs to a third-party company, and the buyer may need to assume a separate long-term contract.
The Fannie Mae Selling Guide states that solar panels leased from or owned by a third party under a PPA must be treated as personal property and excluded from the appraised value of the real estate. This is an underwriting rule for loans subject to Fannie Mae guidance, not a claim that buyers never value lower energy bills or that all real-estate transactions follow identical rules.
| Solar ownership arrangement | Potential resale effect | Seller’s key task |
|---|---|---|
| Owned outright | Strongest basis for a documented solar premium | Provide ownership, production, warranty and permit records |
| Solar loan paid off | Can resemble outright ownership after liens are cleared | Obtain payoff and lien-release documents |
| Separate outstanding solar loan | Appraisal treatment depends on collateral and lender rules | Disclose loan and resolve transfer or payoff terms |
| Solar lease | May not increase appraised real-property value | Provide lease transfer and buyout conditions |
| Power purchase agreement | Third-party equipment is excluded under Fannie Mae rules | Provide rate, escalator, transfer and service terms |
Do Financed Solar Panels Increase Property Value?
A solar loan is not automatically equivalent to full, unencumbered ownership for appraisal purposes. The Fannie Mae solar property eligibility guidance explains that separately financed panels may be collateral for debt, and that their treatment depends on whether the equipment can be repossessed and how the security interest is documented. In some cases, panels must not contribute to the appraised value while they remain collateral for a separate loan.
If you plan to sell, contact the solar lender early. Ask for the payoff balance, any transfer options, lien or UCC filing information, and the documentation needed at closing. A real-estate agent, title company, and lender may need to coordinate. Paying off the loan may simplify the transaction, but the financial effect depends on the payoff amount and what buyers are willing to pay.
What Factors Determine the Added Value of Solar Panels?
Local electricity rates and bill savings
Buyers may value solar more when the system can meaningfully reduce electricity purchased from the utility. But the amount saved depends on household usage, annual solar generation, utility prices, fixed charges, and how exported energy is credited. A house with a large array is not automatically more valuable if the system produces little usable electricity or the local tariff offers low export compensation. For practical calculations, see our solar savings guide.
Age, condition, and remaining useful life
The panels’ installation date, performance history, inverter condition, warranties, and maintenance records can influence buyer confidence. An aging system with an inverter near replacement or unresolved roof leaks may be less attractive than a well-documented system that has been maintained. Berkeley Lab’s historical work found evidence that solar premiums can change as systems age. It does not justify a universal depreciation schedule for every modern panel.
Roof condition and installation quality
The roof is still one of the largest assets in a home. If it needs replacement soon, buyers may worry about the cost of removing and reinstalling solar equipment. Permitted installation, proper flashing, sound structural attachments, and clear roof warranties can reduce concerns. Review our guide to solar panels and roof damage for questions to ask before listing.
System size, production, and documentation
A larger array may generate more electricity, but value depends on its actual usefulness, not just its rated kilowatts. Keep annual production reports, the equipment list, warranties, permits, utility interconnection documents, and the original installation contract. These materials help an appraiser or buyer evaluate the equipment rather than guess from rooftop photographs.
Local buyer preferences and comparable sales
Solar adoption, electricity prices, and buyer expectations vary by neighborhood. The best evidence for a particular listing is recent sales of otherwise comparable homes with and without owned solar in the same market. Appraisers can analyze those sales alongside system-specific factors. A national headline cannot establish the correct listing premium for one address.
How to Estimate the Home Value Added by Solar Panels
Start with a professional appraisal or a local real-estate agent experienced in solar transactions. Request comparable sales of nearby properties with similar square footage, condition, age, location, and solar ownership. The appraiser should understand whether the system is owned, financed, leased, or subject to a PPA. The Department of Energy’s solar-home buying guide discusses the PV Value tool and the importance of ownership records.
For a quick illustration, suppose an otherwise comparable home without solar would sell for $400,000. A hypothetical 3% solar premium would be $12,000, and a hypothetical 5% premium would be $20,000. Those are arithmetic scenarios, not verified local estimates. The actual premium might be lower, higher, or zero depending on market evidence and the solar contract.
Do not calculate added value solely by adding up the original installation invoices. A system that cost $30,000 to install does not necessarily add $30,000 to a home’s sale price. Conversely, a system may deliver years of bill savings before the sale as well as some resale premium. Installation cost, operating savings, and resale value are separate quantities.
Does Solar Increase Home Value Enough to Pay for Itself?
Not necessarily. A higher selling price does not guarantee that the entire installation investment will be recovered. A proper return-on-investment calculation includes the system’s full installed price, financing charges, maintenance, any available incentives, energy-bill savings during ownership, and the incremental sale proceeds attributable to solar. Selling costs and the remaining solar loan balance may also affect the cash you receive at closing.
Consider a purely hypothetical homeowner who paid $24,000 cash for solar, saved $1,200 per year on electricity for five years, and later received an estimated $10,000 higher sale price than an otherwise comparable property. The combined nominal benefit would be $6,000 in bill savings plus $10,000 in resale premium, or $16,000 before maintenance, selling costs, and time value of money. Against a $24,000 initial expense, that does not fully recover the cost. These numbers illustrate the method, not an average return.
Another household with different electricity rates, incentives, ownership duration, and resale conditions could reach a different outcome. If you may move soon, model the sale scenario before buying a new system. For the cost side of the equation, see how much solar panels cost.
What About Solar Tax Credits in 2026?
The federal Residential Clean Energy Credit under Section 25D is not available for new homeowner solar installations completed after December 31, 2025. The Internal Revenue Service confirms the termination date. Older articles that describe an ongoing 30% homeowner credit for installations completed in 2026 are outdated. State, local, or utility incentives may have different eligibility rules and should be verified with their administrators.
A buyer of a home with an already-installed system should not assume they can claim a new federal credit simply because they purchased the property. The DOE’s buyer guidance explains that the credit applied to original installation rather than a later home purchase. Tax law is separate from the market value of the panels; a system can have resale value even when a new homeowner installation credit is unavailable.
Do Solar Panels Increase Property Taxes?
A home’s resale value and its taxable assessed value are not always the same. Some states or local jurisdictions provide property-tax exclusions or exemptions for qualifying solar equipment, while others apply different assessment rules. There is no nationwide guarantee that solar never affects property taxes. Ask the local assessor how solar improvements are treated and whether any application or documentation is required.
An exemption may have ownership, timing, or eligibility conditions. Verify it directly with the state or county rather than relying on an installer sales pitch. Do not confuse a property-tax exemption with the former federal income-tax credit; they are different programs with different rules.
Can Leased Solar Panels Make a House Harder to Sell?
A lease or PPA can introduce extra steps because the buyer may need to review and assume the contract, qualify under the provider’s requirements, or negotiate a buyout. The Department of Energy notes that third-party-owned systems can complicate transactions, although their overall effects are often neutral and can sometimes be positive. It would be inaccurate to say every solar lease prevents a home sale.
Before listing, request the complete lease or PPA, current payment schedule, any annual escalator, remaining term, service obligations, transfer procedure, and buyout price. Ask whether the buyer must pass a credit check. Make these terms available early so potential buyers can evaluate the contract. Never advertise leased equipment as fully owned.
How to Sell a House With Solar Panels
- Verify ownership. Identify whether the panels are owned outright, financed, leased, or covered by a PPA.
- Gather documents. Collect installation contracts, permits, warranties, interconnection approval, monitoring records, and recent utility bills.
- Review outstanding debt. Ask for a solar-loan payoff statement or lease/PPA transfer terms before listing.
- Check roof and equipment condition. Resolve known leaks, faults, or maintenance issues with qualified professionals.
- Request a solar-aware valuation. Ask an appraiser or agent to compare recent local sales and account for ownership rules.
- Explain realistic energy benefits. Share actual historical production and bills rather than promising the buyer identical future savings.
- Disclose contractual obligations. Give buyers and their lenders enough time to review all solar-related documents.
- Coordinate closing. Ensure liens, loan payoffs, equipment ownership, and contract transfers are handled by the appropriate parties.
A transparent solar listing is more useful than a vague claim that the panels add a fixed percentage to the home. Provide the equipment model, rated system capacity, installation year, ownership status, and available operating history. A buyer can then compare the property’s expected electricity costs and maintenance obligations with those of similar homes.
What Should Buyers Check Before Paying Extra for a Solar Home?
If you are buying a house with solar, confirm that the seller actually owns the panels and can transfer them. Request a system inspection where appropriate, review annual generation reports, check the roof condition, and read the equipment warranties. Confirm whether the solar array is permitted and interconnected with the utility. If there is a lease or PPA, examine the monthly payment, escalator, buyout provisions, and responsibility for repairs.
The DOE’s consumer guide to buying a solar home recommends understanding the ownership structure and any agreements tied to the equipment. The Fannie Mae Selling Guide also shows why financing and collateral arrangements matter for mortgage underwriting. A real-estate attorney, lender, or title professional can clarify transaction-specific questions.
Frequently Asked Questions
Do solar panels increase home value in 2026?
Research supports a resale premium for many homes with owned solar systems, but the exact 2026 value of any particular home is uncertain. Local comparable sales, ownership, system condition, and energy costs matter. Do not apply a national percentage without local evidence.
How much value does a 6-kW solar system add?
There is no verified universal amount for a 6-kW system. A historical Berkeley Lab study found about $4 per watt for its sample, but multiplying that figure by 6,000 watts would not be a reliable 2026 appraisal. Use recent local sales and a qualified valuation.
Do paid-off solar panels increase resale value?
They may. Paid-off, homeowner-owned systems are the type most directly associated with documented premiums. Clear ownership and operating records help buyers and appraisers understand the equipment.
Do leased solar panels increase home value?
They do not consistently produce a resale premium in the newer California study. Fannie Mae guidance excludes third-party-owned leased or PPA equipment from appraised real-property value. A lease can still affect buyer perceptions and the transaction process.
Does solar increase appraisal value or only listing price?
Owned solar may contribute to appraisal value when supported by appropriate market evidence and lender requirements. A seller’s asking price is not proof of added market value. Appraisal treatment also depends on ownership and financing.
Will solar panels help my house sell faster?
Some historical studies have reported faster sales in certain markets, but results are not consistent enough to promise a shorter selling period for every home. Local demand, listing price, condition, and financing terms can outweigh the solar feature.
Does adding a battery increase home value?
A battery may be attractive to buyers who value backup power or time-of-use savings, but a reliable nationwide resale premium for residential batteries cannot be confirmed from the sources used here. Its value should be assessed separately from the solar panels and supported by local market evidence.
Do solar panels increase home insurance costs?
Insurance treatment varies by provider, equipment ownership, and policy. Some insurers may require notice or additional coverage. Ask the insurer directly; a possible premium change should be included in the ownership-cost analysis.
Can I sell my house with an outstanding solar loan?
Often yes, but the lender’s payoff, collateral, and transfer requirements must be addressed. An outstanding separately secured loan can affect appraisal treatment and closing. Contact the lender and title company early.
Will solar panels pay for themselves when I sell?
Not necessarily. The financial outcome depends on installed cost, energy savings during ownership, financing, maintenance, and the actual sale premium. A home value increase is only one part of the return.
Bottom Line: Do Solar Panels Increase Home Value?
Owned solar panels can increase a home’s resale value, and multiple studies support that conclusion. The most defensible answer is not a guaranteed 4%, 5%, or 10% increase. It is that a documented, well-maintained, homeowner-owned system may command a premium, with the amount depending on local sales and energy economics. Leased systems and separately financed equipment require more careful treatment.
If you are considering solar partly to increase resale value, compare the total installation cost with realistic electricity savings and a conservative, locally supported sale premium. If you already have solar and plan to sell, organize ownership, production, warranty, and loan documents before listing. That gives buyers and appraisers the information needed to assess the system fairly.
Sources and Research Notes
- Lawrence Berkeley National Laboratory: Selling Into the Sun (2015) — multi-state historical transaction analysis.
- Berkeley Lab: Appraising Into the Sun (2015) — paired-sales appraisal evidence.
- SolarInsure: Solar Panels & Home Values (October 2026) — California sample and ownership differences.
- U.S. Department of Energy: Homeowner’s Guide to Solar — resale and ownership considerations.
- DOE: Consumer’s Guide to Buying a House With Solar Panels — buyer checklist.
- Fannie Mae: Special Property Eligibility Considerations — financed and leased solar appraisal treatment.
- IRS: Residential Clean Energy Credit — federal homeowner credit ended after 2025.
Editorial note: This U.S.-focused article distinguishes historical research, newer industry analysis, mortgage underwriting rules, and hypothetical calculations. Neither published study establishes a guaranteed premium for a particular home. Figures are not current local appraisals. Featured photograph: Divaris Shirichena / Unsplash.