Do solar panels increase home value

Hey everyone, I’ve been digging into this question a lot lately because a few friends are thinking about going solar and wondering if it pays off when they sell their house down the road. The short answer is yes, solar panels do increase home value in most cases, but it depends on a bunch of factors. Let me break it down based on the latest data I’ve seen as of late 2025.

First off, recent studies show a pretty solid bump. A 2025 study from SolarReviews looked at homes across the country and found that houses with solar panels sold for about 6.9% more on average than similar ones without. With the median home price around $417,000 right now, that works out to roughly $28,000 to $29,000 extra. That’s up from older studies like Zillow’s 2019 one that pegged it at 4.1%. Other research, like from Lawrence Berkeley National Lab, suggests about $5,000 to $6,000 added per kilowatt of system size. For a typical 7-10 kW setup, you’re looking at $35,000 to $60,000 in added value, though it varies.

The big key here is ownership. If you own the panels outright – whether you paid cash or financed with a loan – that increase applies. Buyers see it as a permanent upgrade, like a new kitchen or roof, and they’re willing to pay more for the lower electric bills and energy efficiency. But if the panels are leased or under a power purchase agreement, it often doesn’t add value at all. In fact, it can complicate the sale because the buyer has to take over the lease, and a lot of people don’t want that hassle. Some realtors even say leased systems can make the house harder to sell.

Location matters too. In sunny states with high electric rates like California, Arizona, or Florida, the boost is bigger because the savings are real and noticeable. In places where electricity is cheap or solar isn’t as common, the premium might be smaller. Also, newer systems add more value than old ones nearing the end of their life.

On the flip side, there are a few potential downsides. Some buyers think panels look ugly, especially if they’re slapped on the front roof facing the street – that can hurt curb appeal. Maintenance is another thing; panels need occasional cleaning, and if the roof needs work, removing and reinstalling them costs extra. Property taxes could go up since the home value increases, but about 29 states have exemptions for solar so you don’t pay more. Insurance might tick up a bit too.

Overall though, the data points to a net positive. Homes with owned solar not only sell for more but often faster, especially as more buyers prioritize energy costs and going green. If you’re planning to stay in your house for a while and own the system, it’s usually a smart move that pays off in savings and resale. Just make sure to get a good installer and keep everything documented for when you sell.

If you’re on the fence, talk to a local realtor who knows the market – they’ll give you the straight scoop for your area. That’s been my experience anyway. What do you guys think – anyone here sold a house with solar lately?