Effect of solar panels on home value

Do solar panels increase home value?

This 2008 study concluded that home value increases by $20 for every $1 reduction in yearly utility bills. So a solar system that reduces energy costs by $500 per year can increase home value by $10,000. More recently, Zillow found that homes with solar panels sell for an average of 4.1% more than comparable homes without solar power.

Do solar panels increase resale value?

More recently, Zillow found that homes with solar panels sell for an average of 4.1% more than comparable homes without solar power. This added value allows sellers and real estate agents to increase the asking price for a home. Buyers benefit from an energy-efficient home, and sellers can profit from an increased resale value.

Do solar panels increase property taxes?

Because installing a solar panel system increases your home value, your property taxes may increase as well. However, many states have introduced laws that exclude solar equipment from sales tax or property tax.

How much do solar panels add to a home?

This is an increase from the 4.1% figure found by Zillow in a 2019 study. With the median value of a home in 2024 at around $417,000, solar panels could add over $28,000 in value! Keep in mind that every home's situation is different, and several factors will impact how much solar panels increase your home’s value.

Do solar panels affect home selling prices?

Homes sold with fully owned panels correlate directly with higher selling prices, according to a study by the National Mortgage Association and the University of California, Berkeley. On the other hand, solar leases did not impact home selling prices. Here is everything you need to know before you call a solar company and make the investment.

Are solar panels a good investment?

Solar panels come with numerous benefits, including increased home value, which can make a solar investment worthwhile. Our guide takes a closer look at how much installing solar panels can boost your home’s market value, factors that influence your final listing price, and the effects on your property tax.