Do Solar Panels Increase Home Value?

The short answer is: often yes, for owned systems, but the size of the bump depends heavily on your market and how the system is financed.

What the research shows

Studies from Lawrence Berkeley National Laboratory and marketplace data from Zillow have found that owned solar systems are associated with a resale premium in many markets — commonly cited in the range of roughly $4,000-$6,000 per kilowatt of installed capacity, though this varies significantly by region, local electricity rates, and how common solar already is in your area. In markets where buyers are used to seeing (and paying for) solar, appraisers are more likely to credit it properly.

Owned vs. leased makes a real difference

An owned system is a fixed asset that transfers with the home and can be appraised. A leased system is a contract obligation — the buyer typically needs to qualify to assume the remaining lease payments or you need to buy out the system before closing. Some real estate agents report leased solar occasionally complicating or slowing a sale, particularly with buyers unfamiliar with the transfer process.

What actually drives the value

• System age and remaining warranty life
• Whether it's owned outright or financed with a transferable loan
• Local electricity rates (higher rates = more perceived buyer value)
• How common solar already is in your specific market (appraisers need comparable sales to justify a premium)

If resale value is a real factor in your decision, ask a local real estate agent (not just your solar installer) how solar has actually performed in recent comparable sales in your specific neighborhood.