When homeowners think about going solar, the first thing on their mind is usually their electric bill. But there’s another question that comes up just as often:
“If I sell my house someday, will solar help or hurt?”
It’s a smart question, especially if you might move in the next several years. The good news is that the research is encouraging. Here’s what the studies show, what affects how much value solar adds, and how to make sure you get credit for it when it’s time to sell.
What the Research Says
Two of the most widely cited studies on solar and home values point in the same direction.
Zillow (2019). Zillow analyzed homes sold over a one-year period and found that homes with solar energy systems sold for 4.1% more on average than comparable homes without solar. For a median-valued U.S. home at the time, that was roughly $9,300 more. Zillow also found the premium varies by market, higher in some areas and lower in others.
Lawrence Berkeley National Laboratory (2015). In a study called Selling Into the Sun, researchers at the Lawrence Berkeley National Laboratory analyzed about 22,000 home sales across eight states, including roughly 4,000 homes with solar. They found that buyers consistently paid a premium for solar homes, on the order of a few dollars per watt of installed solar capacity.
In plain English: a typical home solar system is several thousand watts, so even a modest premium per watt can add up to a meaningful bump in sale price.
Why Buyers Pay More for Solar Homes
Solar adds value for the same reason it’s appealing to you today: lower energy costs.
- Smaller electric bills. Buyers see a home that costs less to run every month.
- Protection from rising rates. With utility rates climbing across the Midwest, solar offers some insulation from future increases. (Here’s why solar is the smartest way to beat rising utility rates.)
- Modern, energy-efficient appeal. Many buyers today look for energy-efficient features when choosing a home.
- Backup power (with a battery). A solar-plus-battery system can keep essentials running during outages, a big plus for buyers in storm-prone areas. (Learn more in Will Your Solar Panels Work During a Power Outage?)
What Affects How Much Value Solar Adds
Not every solar home sees the same premium. A few factors make a big difference:
1. Owned vs. leased. The research above focuses largely on homes with owned solar systems, whether paid for in cash or financed with a loan. With an owned system, the panels are simply part of the home. Leased systems or power purchase agreements involve a third-party contract that the buyer may need to take over, which can add steps to a sale.
2. System age and condition. A newer, well-maintained system with plenty of warranty coverage left is more attractive than an aging one.
3. Quality of the installation. Clean, professional installation with quality equipment reassures buyers and inspectors. That’s why choosing the right solar company matters.
4. Your local market. Zillow’s research showed premiums vary from market to market, depending on local buyer demand and electricity costs.
5. Documentation. Buyers and appraisers can only value what they can see and understand. More on that below.
How to Get Full Credit for Your Solar When You Sell
Solar adds the most value when buyers, agents and appraisers clearly understand what it does. If you’re planning to sell, gather:
- System details: size (kW), equipment brands and installation date
- Production data: what the system has generated, from your monitoring app
- Utility bills: before-and-after examples that show real savings
- Warranties: equipment and workmanship warranties, and whether they transfer
- Ownership paperwork: proof the system is owned, or a paid-off or transferable loan
- Permits and inspections: documentation that the system was properly permitted and inspected
It also helps to work with a real estate agent who understands solar, and to make sure the appraiser has the system information in hand.
Thinking About Selling in the Next Few Years?
If you might sell within the next few years, solar can still make sense:
- You save on electric bills while you live there.
- The system can add appeal and value when you sell.
- An owned system transfers simply with the home.
Every situation is different, and we’re happy to walk through the numbers for your home, including how long you plan to stay. Explore solar financing options that let you own your system.
Why Homeowners Choose Icon Solar
Since 2009, Icon Solar has helped homeowners across Ohio, Kentucky and Indiana go solar with quality equipment and professional installation, the kind of system future buyers will appreciate too.
Learn more about solar for your home, read what customers say in our testimonials, or browse our top 10 solar FAQs.
Get your free quote or call (866) 396-4266 to talk with our team.
Home values depend on many factors, and no study can predict what any individual home will sell for. Talk with a local real estate professional about your specific market.
Frequently Asked Questions
Do solar panels increase home value?
Research suggests they can. A 2019 Zillow analysis found homes with solar sold for 4.1% more on average than comparable homes without solar, and a Lawrence Berkeley National Laboratory study found buyers consistently paid a premium for homes with solar. Results vary by market and system.
How much value does solar add to a home?
It varies. Zillow’s 2019 analysis found an average premium of 4.1%, about $9,300 for a median-valued U.S. home at the time. Lawrence Berkeley National Laboratory research found premiums on the order of a few dollars per watt of installed solar capacity.
Do leased solar panels add value to a home?
The home-value research focuses largely on owned systems. Leased systems and power purchase agreements involve a third-party contract the buyer may need to assume, which can add steps to a sale.
What should I give buyers if I’m selling a home with solar?
Provide system size and equipment details, production data, before-and-after utility bills, warranty information, ownership paperwork, and permit and inspection records.
Is solar worth it if I might move in a few years?
It can be. You save on electricity while you live in the home, and an owned solar system can add appeal and value when you sell. A solar professional can help you compare costs and savings for your timeline.
An Investment That Works Now and Later
Solar lowers your bills today and can make your home more attractive tomorrow. If you’ve been wondering whether it’s worth it, the research says buyers see the value too.
