Solar panels can add measurable value to a home, but how much depends heavily on ownership status, your local market, and whether the system is owned outright or leased. Research consistently shows owned systems add real resale value, while leased systems can complicate a sale.
The Research on Solar and Home Value
Studies from Lawrence Berkeley National Laboratory (LBNL) and Zillow have found that owned solar systems add a premium to home sale prices — LBNL’s research has found premiums in the range of roughly $4 per watt of installed capacity, meaning a 7 kW system could add around $28,000 to a home’s value in markets with strong solar demand.
Owned vs. Leased Systems: A Critical Difference
An owned system (paid cash or via a solar loan that’s paid off or transfers cleanly) adds value straightforwardly, since the buyer gets free electricity generation as part of the purchase. A leased system or one under a PPA (power purchase agreement) is more complicated — the buyer must either qualify to assume the lease payments or the seller must pay it off, and some buyers are deterred by the added complexity, which can offset or eliminate the value premium.
| Ownership Type | Effect on Home Value | Sale Complexity |
|---|---|---|
| Owned (cash or paid-off loan) | Positive premium, roughly $4/watt in strong markets | Low — straightforward transfer |
| Owned with active loan | Positive, but loan balance may need settling at sale | Moderate — depends on loan terms |
| Leased | Mixed — can deter buyers or require payoff | High — buyer must qualify or seller pays off lease |
| PPA | Similar to lease — transfer or buyout required | High |
Do Homes With Solar Sell Faster?
Some research indicates homes with owned solar systems sell somewhat faster than comparable homes without solar, particularly in markets where energy costs and environmental awareness factor into buyer decisions — though this effect varies by region and buyer pool.
Factors That Affect the Value Premium
The size and age of the system, local electricity rates (higher rates increase the value of free generation), whether the system is under warranty, and how established solar is in your specific local market all affect how much value a system adds — there’s no single universal number.
The Tax Credit Angle
Since the federal Section 25D residential tax credit expired December 31, 2025, homeowners buying a system today can no longer offset cost with the 30% credit, which may affect the economics new buyers weigh when evaluating a home with solar versus one without.
Curious what solar could add to your home’s value? Get a free quote: (855) 427-0058
Frequently Asked Questions
Do solar panels increase home value?
Yes, generally – research from LBNL and Zillow has found owned systems add a premium, roughly $4 per watt of installed capacity in strong markets.
Does a leased solar system add home value?
It’s more complicated – leased systems require the buyer to qualify for the lease or the seller to pay it off, which can offset or eliminate any value premium.
Do homes with solar sell faster?
Some research suggests owned-solar homes sell somewhat faster in certain markets, though the effect varies by region and buyer pool.
How much value does a 7 kW solar system add to a home?
Using the roughly $4/watt LBNL premium estimate, a 7 kW owned system could add around $28,000 in markets with strong solar demand.
What factors affect how much value solar adds?
System size and age, local electricity rates, warranty status, and how established solar is in the local market all play a role.
Does the expired federal tax credit affect home value from solar?
It may affect buyer economics somewhat, since new buyers can no longer offset a purchased system’s cost with the 30% Section 25D credit, which expired December 31, 2025.
Is owning or leasing solar better for resale value?
Owning is generally better for resale value and simplicity – leased systems add complexity that can deter some buyers.
Summing Up
Owned solar systems tend to add real, measurable value to a home, while leased systems require more care at sale time. To find out what solar could mean for your home’s value, call (855) 427-0058 or visit us.solarpanelsnetwork.com for a free quote.
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