Does Solar Increase Home Value? What the Data Shows in 2026
Yes — solar adds an average of 4% to home value. Here's what the research shows, which markets benefit most, and how to maximize your solar home value.
The Research Is Clear: Solar Adds Value
Multiple independent studies confirm that solar panels increase home value. The most cited research from Zillow (2019) and Lawrence Berkeley National Laboratory found that solar adds an average of 4.1% to home sale prices — approximately $15,000 on a $375,000 home. Solar homes also sell 20% faster than comparable non-solar homes.
| Study | Value Added | Key Finding |
|---|---|---|
| Zillow (2019) | +4.1% | Homes with solar sell for 4.1% more on average |
| Lawrence Berkeley National Lab | +$4/watt | 6 kW system adds ~$24,000 in value |
| National Renewable Energy Lab | +$5,911/kW | Varies significantly by state |
| Appraisal Journal | +$20/kWh saved | Savings-based valuation method |
Which Markets Benefit Most
Solar adds the most value in markets where buyers understand and value solar:
- California: Solar adds 4–6% to home value in most California markets.
- New York and New Jersey: High electricity rates make solar savings highly valued by buyers.
- Massachusetts and Connecticut: Strong solar awareness and high rates drive premium valuations.
- Texas and Florida: Growing solar awareness is increasing the value premium.
- Rural markets: Solar value premiums are lower in markets with limited solar awareness.
Owned vs. Leased Solar: A Critical Difference
Owned solar (cash or loan) adds value to your home. Leased solar can actually complicate your sale. Buyers must either assume the lease or you must buy it out at closing. Many buyers are reluctant to assume a 15–20 year lease obligation, which can reduce your effective sale price or slow your sale.
Frequently Asked Questions
How do appraisers value solar panels?
Appraisers use two main methods: the income approach (present value of future electricity savings) and the sales comparison approach (comparing to similar homes with and without solar). The income approach typically yields higher valuations.
Do solar panels affect property taxes?
In most states, no. 36 states have property tax exemptions for solar installations, meaning your assessed value doesn't increase when you add solar. Check your state's specific policy.
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