Do Solar Panels Increase Home Value? (2026 Data)

Yes — owned solar panels generally increase a home’s value, by roughly 4% on average according to multiple studies, and solar homes tend to sell faster than comparable homes without it. But there’s an important catch: it only holds when you own the system. Here’s the full picture.

What the research shows

Studies from Zillow and the U.S. Department of Energy’s Lawrence Berkeley National Laboratory have consistently found that homes with owned solar sell for a premium. The widely cited figures:

~4% higher sale price on average (Zillow), which on a $400,000 home is about $16,000.
Buyers pay roughly $15,000–$20,000 more for a typical residential system (Berkeley Lab), close to the system’s net cost.
Solar homes often sell faster because lower utility bills are an easy selling point.

In other words, a well-installed, owned solar system tends to return much of its cost at resale — on top of the years of electricity savings you bank while living there.

Why solar adds value

Lower operating costs. Buyers value a home that comes with little or no electric bill. It’s a tangible, recurring saving.
Hedge against rising rates. With utility prices climbing most years, a home that generates its own power is more attractive.
Modern, efficient appeal. Solar signals an updated, energy-conscious home — similar to how a renovated kitchen reads as “move-in ready.”

The big catch: owned vs. leased

This is where it gets important.

Owned panels (cash or loan that you pay off): add value, because they transfer to the buyer free and clear.
Leased panels or a PPA: often don’t add value, and can even complicate a sale. The buyer has to qualify for and assume the lease, which can scare off some buyers or stall closing.

If resale value matters to you, owning the system is the way to go. (See our breakdown of cash vs. loan vs. lease.)

What affects how much value you get

Location. In high-electricity, high-sun states the premium is larger because the savings are bigger. Check your state’s solar economics.
System age and condition. Newer panels with transferable warranties add more than aging ones.
Ownership status. Owned > financed-but-paid-off > active loan > leased.
Local market. In eco-conscious and high-cost-of-living markets, buyers pay more for solar.

How it’s appraised

For the value to show up in an appraisal and sale, keep documentation handy: the install contract, system size, equipment specs, warranties, and a year of utility/production data. Appraisers increasingly use tools designed to value solar (like the PV Value tool), but only if you can show the system’s specs and output.

Bottom line

Owned solar is one of the few home upgrades that both saves you money while you live there and returns much of its cost at resale — roughly a 4% value bump on average. The key rules: own it, keep your paperwork, and the higher your local electricity rates, the bigger the payoff.

Want to see the savings and payback for your specific home first? Run the free solar calculator, and read how much solar costs before you buy.