April 29, 2026

Solar Panels and Home Value: Does Going Solar Increase Your Home's Worth?

One of the most common questions homeowners ask before going solar is whether the investment will pay off when they sell. The answer, backed by multiple studies, is a clear yes — solar panels increase home value, often by more than the cost of the system itself.

Here’s what the research shows, what drives the increase, and what to keep in mind if you’re planning to sell.

What the Research Says

A widely cited study found that homes with solar panels sell for a premium compared to similar homes without them. On average, each kilowatt of solar capacity added roughly $4,000–$6,000 to a home’s sale price. For a typical 6–8 kW residential system, that translates to a $24,000–$48,000 increase in value.

Zillow research found that homes with solar energy systems sold for approximately 4% more than comparable homes without solar. In high-electricity-cost markets like California, New Jersey, and New York, that premium was even higher.

The key driver: buyers understand that a solar home means lower utility bills, and they’re willing to pay for that benefit upfront.

Why Solar Adds Value

There are a few reasons solar reliably increases what buyers will pay:

Lower operating costs. A home that costs $100/month less to run is simply worth more. Buyers factor ongoing expenses into what they can afford, and a solar home shifts that math in their favor.

Energy independence. With electricity rates rising nationally, the appeal of generating your own power is growing. Buyers increasingly see solar as a hedge against future rate increases.

Modern appeal. Solar signals a well-maintained, forward-thinking home. It tends to attract a wider pool of buyers, which can shorten time on market and support asking price.

Owned Systems vs. Leased Systems

There’s an important distinction that significantly affects resale value: whether the system is owned outright or leased.

Owned systems add directly to your home’s appraised value and are straightforward to transfer to a new buyer. This is the scenario where you capture the full value premium.

Leased systems are more complicated. The lease transfers to the new buyer, who must qualify and agree to take it over. Some buyers are hesitant to assume a long-term lease obligation, which can complicate or slow a sale. If you’re considering solar primarily as a long-term investment, purchasing the system — especially with the 30% federal tax credit offsetting a significant portion of the cost — is the stronger financial move.

Factors That Affect the Value Increase

Not every solar installation adds equal value. The premium depends on:

Location. Markets with high electricity rates and strong solar adoption see larger premiums. California, Massachusetts, New Jersey, and New York consistently show the strongest value increases.

System size and condition. A newer, larger system in good condition commands more than an older, undersized one. Panels from reputable brands with strong warranties — like the Renogy 200W N-Type panels that carry 25-year output guarantees — are more attractive to buyers and appraisers.

Battery storage. Adding a home battery system like the EcoFlow DELTA 2 Max increases the value proposition further, especially in markets with frequent outages or high time-of-use rates. Buyers who want true energy independence will pay a premium for storage-equipped homes.

Local market familiarity. Appraisers in markets with high solar adoption are more comfortable assigning value to systems. In less common markets, the premium may be lower simply because there are fewer comparable sales.

Solar and Home Value on Our City Pages

Curious about solar’s impact on home values in your specific area? We track solar installation trends and incentives across hundreds of cities. Check out your state’s page to see local data:

The Bottom Line

Solar panels are one of the few home improvements that consistently return more than they cost — through utility savings while you live there, and through increased sale price when you leave. Owned systems in high-electricity-cost markets offer the strongest returns, but virtually every properly installed solar system adds meaningful value.

If you’re considering solar and want to understand what a system would cost — and what it would add to your home’s value — getting a free quote is the best starting point.

Get a free solar quote for your home →

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