Quick answer (as of July 2026)
Yes, an owned solar system usually raises a home’s resale value. Zillow found solar homes sold for about 4.1% more than comparable homes, an extra $9,274 for the median U.S. home (Zillow Research, as of April 2019), and Berkeley Lab measured a premium near $4 per watt (LBNL, as of 2015). Applying Zillow’s 4.1% to a $500,000 Northeast home, MySolarFY’s analysis puts the resale bump near $20,500 (as of July 2026). The premium is reliable for owned systems; a leased or PPA system is usually value-neutral and can complicate a sale.
The full picture, at a glance (2026)
- Yes, owned solar usually adds value. Zillow found homes with solar sold for about 4.1% more on average than comparable homes without it, an extra $9,274 for the median-valued U.S. home in its study (Zillow Research, as of April 2019).
- The federal lab put a per-watt number on it. Berkeley Lab’s “Selling Into the Sun” study found buyers paid a premium of about $4 per watt of installed solar, roughly $15,000 for the average 3.6 kW system at the time (Lawrence Berkeley National Laboratory, as of 2015).
- Ownership is the deciding factor. The resale-premium studies measured owned systems (cash or a paid-off loan). A leased or PPA system tends to be value-neutral and can complicate a sale, because the buyer has to assume the contract or the seller has to buy it out.
- Most states protect you from a tax hit. 36 states offer some form of solar property-tax exemption, so the value solar adds is not taxed even though it counts at resale (SEIA, as of 2026).
- It varies by market, system age, and how you paid. The 4% average hides a wide range: some metros saw much larger premiums, and an old or leased system can add little. Treat these as illustrative figures, not a guarantee.
“Will solar pay me back when I sell?” is one of the most common questions homeowners ask before signing, and the honest answer is more nuanced than the headline “solar adds 4% to your home.” It does, on average, for owned systems, and multiple large studies back that up. But the value depends heavily on whether you own the system, how old it is, your local market, and whether a leased contract is attached to the house. This guide pulls together what the research actually found, does the math on what that could mean for a home like yours, and covers the parts most articles skip: leased panels at resale, property taxes, and why some sellers still hit friction. It is part of our broader solar cost and savings guide and our full solar resources library.
Does solar increase home value?
Yes. For most homes, an owned solar system increases resale value, typically by around 4% of the home’s price, according to the largest studies on the question. Zillow’s analysis of U.S. home sales found solar homes sold for 4.1% more on average than comparable homes without solar (Zillow Research, as of April 2019), and the U.S. Department of Energy summarizes federal-lab research under the plain heading that solar homes sell for a premium (U.S. DOE, as of 2024). The important caveat sits inside that “yes”: the premium is reliably measured for owned systems, it is a national average that varies widely by market, and a leased or PPA system is a different story that we cover below. So the accurate one-line answer is: owning solar usually raises your home’s value, leasing it usually does not.
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How much value do solar panels add to a house?
The two most-cited studies put it at about 4% of the home’s price (Zillow) or about $4 per watt of installed capacity (Berkeley Lab), and recent 2026 market analyses land in the same 3% to 4% range. The table below lays out the actual research, with the year and method for each, so you can see where the widely-repeated numbers come from rather than trusting a single blog figure.
| Study / source | Year | What it found | Method |
|---|---|---|---|
| Zillow Research | 2019 | Solar homes sold for 4.1% more on average, about +$9,274 for the median-valued U.S. home | Compared sale prices of homes with vs. without solar across U.S. sales from Mar 2018-Feb 2019 (source) |
| Lawrence Berkeley National Laboratory, “Selling Into the Sun” | 2015 | Buyers paid a premium of about $4 per watt, roughly $15,000 for the average 3.6 kW system of that era | Hedonic and paired-sales analysis of a large multi-state dataset of solar-home resales (source) |
| U.S. Department of Energy | 2024 | Homes with solar “sell for a premium”; summarizes the federal-lab findings | Federal agency synthesis of Berkeley Lab valuation research (source) |
| Recent market analyses (e.g. Opendoor) | 2026 | About a 3% to 4% national premium, with a median add near $15,000 | Industry synthesis of Zillow, LBNL, and newer sales data (source) |
The 4.1% figure is a national average that varied a lot by metro (some markets saw far larger premiums), and the LBNL $15,000 figure is tied to the 3.6 kW average system of 2015, not today’s larger systems. Use these as directional evidence, not a fixed local number.
What could solar add to a home like yours?
Applying Zillow’s 4.1% average premium across common home prices gives a simple, reproducible estimate you can place your own home inside. The table below is our own computation: it multiplies the Zillow national-average premium by a range of home values, then shows Berkeley Lab’s per-watt lens beside it for a typical system size. Each cell is arithmetic from the cited studies, not a quote.
Illustrative estimate, not an appraisal or a guarantee. The percentage column applies Zillow’s 4.1% national-average premium to the home price; the per-watt note applies Berkeley Lab’s ~$4/W finding to system size. Real added value depends on your local market, the age and ownership of the system, and how a buyer’s appraiser treats it.
| Home sale price | Zillow lens: added value at 4.1% (national average) | Berkeley Lab lens: ~$4/W for a typical system (upper bound) | 2026 market median (Opendoor) |
|---|---|---|---|
| $300,000 | ~$12,300 | ~$24,000 (6 kW) | ~$15,000 |
| $400,000 | ~$16,400 | ~$28,000 (7 kW) | ~$15,000 |
| $500,000 | ~$20,500 | ~$32,000 (8 kW) | ~$15,000 |
| $600,000 | ~$24,600 | ~$40,000 (10 kW) | ~$15,000 |
The Zillow column is the home price times 0.041 (Zillow’s 4.1% average premium, as of April 2019), rounded to the nearest $100, so the arithmetic is fully reproducible. The Berkeley Lab column applies its ~$4-per-watt finding to a typical system size for that home (LBNL, as of 2015); treat it as an upper bound, since it reflects the stronger markets and smaller systems the 2015 study measured. The market-median column is the ~$15,000 figure recent 2026 analyses report regardless of home price (Opendoor, as of 2026). The three lenses bracket a wide range, which is exactly why local market conditions decide the real number.
Do owned and leased solar panels affect home value differently?
Yes, and this is the single biggest factor. An owned system (bought with cash or a paid-off loan) adds appraised value; a leased or PPA system tends to be value-neutral, and it can make the home harder to sell. The reason is ownership: when you own the panels, they are part of the house and transfer with it as an asset. When a third party owns them under a lease or power purchase agreement, the equipment is not yours to sell, and closing the sale requires the buyer to qualify to assume the contract or the seller to buy it out first (U.S. DOE homeowner’s guide to solar, as of 2024). The table below shows how the two paths behave at resale.
| At resale | Owned system (cash or paid-off loan) | Leased or PPA system |
|---|---|---|
| Adds appraised value? | Yes, per Zillow and Berkeley Lab | Largely neutral; the panels are not the seller’s asset |
| What happens at closing | Panels transfer with the house as an asset | Buyer must assume the lease/PPA, or the seller buys it out |
| Effect on the sale | A selling point, especially with low or no electric bills | Can add friction; some buyers decline to take on the contract |
| Who holds the incentives | The homeowner keeps them | The company that owns the system keeps them |
Ownership-at-resale distinction per U.S. DOE and Berkeley Lab research: paired-sales analysis found a resale premium for host-owned PV but not for third-party-owned (lease/PPA) homes, and DOE guidance notes a home sale with a lease or PPA typically requires the buyer to assume the contract or the seller to buy it out (U.S. DOE: Solar Homes Sell for a Premium, as of 2024; U.S. DOE homeowner’s guide, as of 2024). This is not a knock on leasing, which is a valid “no up-front cost” path where you qualify; it just means the home-value case is strongest for owned systems.
If you are weighing how you pay for a system in the first place, we walk through cash, loan, and lease/PPA in our analysis of whether solar panels are worth it, and how the up-front price breaks down in our guide to how much solar panels cost.
Do solar panels increase your property taxes?
In most states, no. Many states offer a solar property-tax exemption, so the value your solar system adds is excluded from your property-tax assessment even though it still counts when you sell. That combination is the best case for a homeowner: your home is worth more at resale, but your annual property-tax bill does not rise because of the panels. Solar property-tax exemptions are one of the most common state solar incentives: the solar industry association counts 36 states offering some form of property-tax exemption for solar (SEIA, as of 2026), and the federal DSIRE incentives database tracks the individual state and local programs (DSIRE, as of 2026). The catch is that it varies: not every state offers one, some are partial or time-limited, and the rules differ, so confirm your own state’s exemption before you count on it. MySolarFY does not provide tax advice; consult a tax professional or your local assessor.
Is it harder to sell a house with solar panels?
Usually no for an owned system, and sometimes yes for a leased one. Research on owned solar points the other way: DOE-cited studies have found solar homes can sell as fast or faster and at a premium, because low or zero electric bills are an attractive selling point (U.S. DOE, as of 2024). Friction shows up mainly in three situations: a leased or PPA contract the buyer must agree to assume, an aging or undersized system that adds little real value, or a market where buyers are simply unfamiliar with solar. The fix is documentation: have your system’s ownership status, age, warranty, production history, and any lease-transfer terms ready for the buyer and the appraiser, and make sure an owned system is clearly represented as owned. A well-documented, owned, producing system is an asset, not an obstacle.
Can solar panels ever decrease a home’s value?
They can fail to add value, and in narrow cases create friction, but a properly installed owned system rarely lowers value on its own. The cases where solar does not help are consistent: a leased or PPA system that a buyer will not assume, an old or poorly maintained array near the end of its life, a system with visible roof-penetration or leak concerns, or an oversized system in a low-rate market where the savings do not justify it. Even then, the drag usually comes from the contract or the condition, not the solar itself. This is why the two levers that matter most for resale value are simple: own the system and keep it in good, documented condition. If you are still deciding whether solar makes financial sense for your situation at all, our look at whether solar pays back and whether it can eliminate your electric bill covers the numbers behind the value.
Does the end of the federal tax credit change the home-value case?
Not the resale value itself, but it does change your out-of-pocket cost. The 30% federal residential solar tax credit (Section 25D) ended for systems placed in service after December 31, 2025, so a 2026 homeowner buys at full price. The credit was repealed under the One Big Beautiful Bill Act (IRS, as of January 2026), which means the cost side of the equation went up for cash and loan buyers, even though the value a system adds at resale is unchanged. A separate commercial credit (Section 48E) can apply to third-party-owned lease and PPA systems, but the company that owns the system claims it, not you. What still helps a homeowner’s return is state, local, and utility incentives, the property-tax exemption above, net-metering credit on the power you export, and no-up-front-cost lease or PPA financing where you qualify. Because those vary by location, an estimate built from your own address beats any national figure. MySolarFY does not provide tax advice; consult a tax professional.
How to protect the value solar adds to your home
The homeowner levers are ownership, condition, documentation, and market timing. Own the system outright where you can, since owned systems are the ones the studies show add value; if you lease, understand the transfer or buyout terms before you list. Keep the system maintained and hold onto the warranty, production records, and permits so an appraiser and a buyer can verify what they are getting. Size the system to your actual usage so it reads as a sensible, cost-justified upgrade rather than an oversized one, which our guide to solar cost by home size can help you gauge. And confirm your state’s solar property-tax exemption so the added value does not raise your tax bill. There is no need to chase a “best installer” list to get here; screen any company on objective criteria, a valid state license, NABCEP-certified installers, a written warranty, real reviews, and a transparent quote. See how we source these figures on our data and methodology page.
Frequently asked questions
Does solar increase home value? Yes, for owned systems. Zillow found homes with solar sold for about 4.1% more on average than comparable homes without it, an extra $9,274 for the median-valued U.S. home in its study (Zillow, as of April 2019), and Berkeley Lab measured a premium of about $4 per watt of installed capacity (LBNL, as of 2015). The U.S. Department of Energy summarizes the same finding, that solar homes sell for a premium (DOE, as of 2024). The value is reliable for owned systems and varies by local market; a leased or PPA system generally does not add value.
How much value do solar panels add to a house? About 4% of the home’s price on average, per Zillow’s 4.1% national figure, or roughly $4 per watt of installed capacity, per Berkeley Lab (Zillow, as of April 2019; LBNL, as of 2015). Applying the 4.1% average, that is roughly $12,300 on a $300,000 home and $20,500 on a $500,000 home. Recent 2026 market analyses land in the same 3% to 4% range with a median add near $15,000. Treat these as illustrative estimates; the real figure depends on your market, the system’s age, and whether it is owned.
Do leased or PPA solar panels add home value? Generally no. Only owned systems (cash or a paid-off loan) reliably add appraised value, because the panels are part of the house. With a lease or power purchase agreement, a third party owns the equipment, so it is not the seller’s asset to sell, and the buyer must qualify to assume the contract or the seller must buy it out before closing. That is why leasing, while a valid no-up-front-cost path where you qualify, does not carry the same resale premium as ownership and can add friction to a sale.
Do solar panels increase your property taxes? In most states, no. The solar industry association counts 36 states offering some form of solar property-tax exemption, which excludes the value solar adds from your property-tax assessment even though it still counts toward your home’s resale value (SEIA, as of 2026; program details tracked in DSIRE, as of 2026). The specifics vary by state and some exemptions are partial or time-limited, so confirm your own state’s rule with your assessor. MySolarFY does not provide tax advice; consult a tax professional.
Is it harder to sell a house with solar panels? Usually not for an owned system, which studies show can sell at a premium and as fast or faster thanks to low electric bills (DOE, as of 2024). It can be harder with a leased or PPA system the buyer has to assume, an aging or undersized array, or a market unfamiliar with solar. Having the ownership status, system age, warranty, production records, and any lease-transfer terms documented for the buyer and appraiser is what keeps an owned system an asset rather than an obstacle.
Can solar panels decrease a home’s value? Rarely on their own. A properly installed, owned, well-maintained system is an asset. The cases where solar fails to help are a leased or PPA contract a buyer will not assume, an old or poorly maintained array near end of life, roof-condition or leak concerns, or an oversized system in a low-rate market. The drag in those cases comes from the contract or the condition, not the solar. Owning the system and keeping it documented and in good shape are what protect the value.
Do solar panels raise your home insurance? Rooftop solar is usually covered under your existing homeowners policy as part of the dwelling, and because it raises your home’s replacement value, your premium may rise modestly to reflect the added coverage. Some insurers ask you to notify them or slightly increase your dwelling coverage limit after installation. Costs vary by insurer and by whether the system is roof-mounted or ground-mounted, so confirm the details with your carrier; our full guide to home solar and homeowners insurance covers this in depth. This is separate from the resale-value question and does not change the studies showing owned solar adds value at sale.
Reviewed and updated by the SolarFY Editor on July 16, 2026. Home-value figures are drawn from Zillow Research, the Lawrence Berkeley National Laboratory “Selling Into the Sun” study, and the U.S. Department of Energy, and the added-value estimates were computed from those studies’ own figures. Property-tax-exemption context is from DSIRE and SEIA. Rates, incentives, tax rules, market conditions, and system prices change and vary by location, so confirm current figures for your address and state before you decide. See how we research and source these numbers on our data and methodology page.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, tax advisor, real-estate appraiser, or government program. The federal residential solar tax credit (Section 25D) ended for systems placed in service after December 31, 2025; homeowners who buy in 2026 do not receive it. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation; solar panels are not free, monthly payments apply, lease and PPA terms typically run 20 to 25 years and may include an annual price escalator, total payments may exceed the cost of a cash purchase, and on a lease or PPA the incentives and tax benefits go to the company that owns the system, which generally does not add to your home’s resale value. All value, cost, and savings figures on this page are illustrative estimates, not appraisals, quotes, or guarantees, and depend on your home, market, system, and financing. See our full disclaimer.
