Solar Panels Increase Home Value
Do Solar Panels Increase Home Value? What You Need to Know
If you’re thinking about adding solar panels to your home, you probably want to know if they’ll increase your home’s value. The good news is that research shows solar panels do make your home worth more money. Studies from 2025 found that homes with solar panels sell for about 6.9% more than similar homes without solar panels.
For homeowners in Ohio, Texas, Connecticut, Florida, and Pennsylvania, this means you could add thousands of dollars to your solar home resale value while also saving money on your electric bills every month. Understanding the solar panel home value increase helps you make a smart financial decision.
What Recent Studies Tell Us About Solar and Home Value
Several trusted research groups have looked at how solar panels affect home prices solar panels property value. Here’s what they found:
The 2025 SolarReviews Study looked at over 400 homes that sold in the last three years. They compared homes with solar panels to similar homes without them. The result? Homes with solar panels sold for 6.9% more on average. For a typical home, that’s about $29,000 extra.
The SolarInsure Study from 2025 studied 5,000 homes in California that sold between 2020 and 2023. They found that homes with owned solar panels sold for 5% to 10% more than homes without solar. That means a $750,000 home could sell for $37,500 to $75,000 more with solar panels.
An older Zillow study from 2019 found that solar panels added about 4.1% to a home’s value, or around $9,274 for the median-priced home. The newer studies show even better results.
The Lawrence Berkeley National Laboratory studied over 20,000 home sales and found that buyers were willing to pay about $15,000 more for homes with solar panels.
Why Do Solar Panels Make Your Home Worth More?
There are several reasons why homes with solar panels sell for more money:
You Save Money on Electric Bills
When you have solar panels, your electric bills go way down. Many homeowners save hundreds of dollars every month. Over a year, that can add up to thousands of dollars in savings.
Buyers understand these savings. When they’re looking at homes, they know a home with solar panels will cost them less money to live in every month. That makes them willing to pay more upfront.
The National Renewable Energy Laboratory found an interesting pattern: for every $1 you save per year on electricity, your home’s value goes up by about $20. So if your solar panels save you $1,500 per year, that could add $30,000 to your home’s value.
Electric Prices Keep Going Up
Over the past 10 years, electricity costs have gone up across the country. Many experts think they’ll keep going up. When you have solar panels, you’re protected from these price increases. Your panels generate free electricity from the sun.
Future homeowners see this as a big advantage. They know they won’t have to worry as much about rising electric bills.
More Buyers Want Eco-Friendly Homes
According to the National Association of Realtors, over 80% of home buyers say energy-efficient features are important to them. More and more people want to help the environment and reduce their carbon footprint.
Solar panels help buyers feel good about their purchase. They’re not just buying a house, they’re buying a home that’s better for the planet.
Homes With Solar Sell Faster
The National Renewable Energy Laboratory found that homes with solar panels sell about 20% faster than homes without them. That means less time waiting to sell your house and move on to your next chapter.
Real estate agents have noticed this too. In a survey, 57% of real estate agents said that promoting a home’s energy-efficient features helps sell the home.
Important Things That Affect How Much Value Solar Adds
Not all solar panel systems add the same amount of value, which is why it’s important to choose the right solar energy company. Here are the key things that matter:
You Must Own Your Solar Panels
This is the most important rule: you need to own your solar panels for them to add value to your home.
Studies show that owned solar systems add 5-10% to your home’s value. But leased solar systems? They add almost no value at all. In fact, leased systems can sometimes make it harder to sell your home.
When you own your panels, buyers get a fully paid system that immediately saves them money. When panels are leased, buyers have to take over monthly lease payments and deal with complicated paperwork.
NREP helps homeowners own their solar panels, which means you get the full benefit when you sell your home.
Where You Live Matters
Different states and cities see different increases in home value from solar panels. Here’s what the research found:
- Pennsylvania: Homes with solar sell for about 4.9% more (around $8,589 extra for a typical home)
- Florida: About 4% more (around $9,454 extra)
- New Jersey: The biggest increase at 9.9% (over $32,000 extra)
Some cities showed even bigger increases. For example, homes in Seattle, Washington with solar panels sold for 9.3% more on average.
For homeowners in NREP’s service areas (Ohio, Texas, Connecticut, Florida, and Pennsylvania), solar panels are a smart investment that pays off when you sell.
The Age and Condition of Your Panels
Newer solar panels add more value than older ones. The good news is that solar panels are built to last a long time, usually 25 years or more.
The 2025 SolarInsure study found something interesting: even solar systems that were over 5 years old still added 5-6% to home value. Newer systems (less than 5 years old) added 7-9%. This shows that buyers care more about long-term savings than having the newest technology.
To keep your solar panels valuable:
- Keep them clean and maintained
- Save all your warranty information (most panels have 25-year warranties)
- Keep records of how much electricity they produce
- Document how much money they save you each month
Local Electricity Costs
Solar panels add more value in places where electricity is expensive. If you’re paying a lot for electricity now, buyers will see bigger savings potential from your solar panels.
Connecticut has some of the highest electricity rates in the country. This means solar panels are especially valuable there. Texas, Florida, Ohio, and Pennsylvania also have areas with high electricity costs where solar makes great financial sense.
Understanding the Solar Federal Tax Credit
Right now, the federal government offers a tax credit for solar panels. You can get back 30% of what you spend on solar installation. This tax credit is available through 2032.
Here’s an example: If your solar system costs $25,000, you can get $7,500 back as a tax credit. That brings your actual cost down to $17,500.
Combined with the increase in home value (often $25,000-$29,000), many homeowners can recover their entire investment when they sell, plus they get years of electric bill savings in the meantime.
Owned Solar vs. Leased Solar: Why It Matters
Some solar companies offer leases where you pay monthly but never own the system. While this might sound easy, it’s usually not the best choice if you want to increase your home’s value. The research is clear: owned solar systems add much more value than leased systems. Some studies found that leased systems added no value at all.
When You Own Your Solar Panels:
- Your home value goes up significantly (5-10%)
- You get the federal tax credit
- Selling your home is simple, the panels just transfer to the new owner
- You save money immediately on electric bills
- After you pay off any solar loan, the electricity is free
When You Lease Solar Panels:
- Your home value might not go up at all
- The solar company keeps the tax credit
- Selling your home is complicated, buyers have to agree to take over the lease
- You have monthly lease payments for 20-25 years
- You never actually own the system
Will Solar Panels Increase My Property Taxes?
This is a common worry, but the good news is that many states have laws to protect you. These laws are called “property tax exemptions.”
Here’s what that means: even though solar panels increase your home’s value, they don’t increase your property taxes in states with exemptions.
Currently, 29 states offer some kind of property tax exemption for solar panels. Ohio, Florida, and Pennsylvania all have these exemptions. This means you can enjoy the higher home value without paying higher taxes every year.
Texas also offers property tax benefits in most areas.
What About Battery Backup?
Some homeowners add battery backup to their solar panel system. Batteries store extra electricity your panels make during the day so you can use it at night or during power outages.
Battery backup is becoming more popular, especially in areas that have:
- Frequent storms (like Florida hurricanes or Texas ice storms)
- Power outages
- High electricity costs during certain times of day
While we don’t have specific studies yet on how much battery backup adds to home value, surveys show that many buyers find it attractive. One survey found that 64% of homeowners think solar is more valuable when it includes battery storage.
NREP offers battery backup options using Neovolta technology, which can provide power during emergencies and help you save even more on electricity.
Tips for When You Sell Your Home
When it’s time to sell your solar-equipped home, here’s how to get the maximum value:
Gather Your Paperwork:
- Electric bills showing your savings before and after solar
- Solar system production reports
- Maintenance records
- Warranty information
Calculate the Savings:
Help potential buyers understand exactly how much money they’ll save. Show them your monthly electric bills compared to what you paid before solar.
Make Sure Everyone Knows You Own the System:
Your real estate listing should clearly state that the solar panels are owned (not leased) and will transfer to the buyer at no extra cost.
Work With a Solar-Savvy Real Estate Agent:
Find an agent who has experience selling homes with solar panels. They’ll know how to market this feature and get you top dollar.
Mention NREP:
Let buyers know that NREP installed your system. Having a reputable, local company behind your solar installation gives buyers confidence.
Get Started With NREP Solar
The research is clear: solar panels increase home value. For homeowners in Ohio, Texas, Connecticut, Florida, and Pennsylvania, now is a great time to go solar. With the 30% federal tax credit available through 2032, you can reduce your upfront costs significantly.
Here’s what happens when you contact NREP:
- Free Assessment: NREP will evaluate your home to see how much solar can help you. They’ll look at your roof, your electric bills, and your energy needs.
- Custom Proposal: You’ll get a clear breakdown showing:
- How much the system will cost
- How much you’ll save on electricity
- The federal tax credit amount
- How much value it will add to your home
- Payment options
- Professional Installation: NREP’s experienced team will install your system in just 1-2 days, using their zero-waste approach.
- Long-Term Savings: Start saving money immediately and enjoy years of lower electric bills.
Ready to increase your home’s value and start saving money?
Call NREP today: (855) 858-6737
Or visit: nrep.solar/contact-us
External Links to Trusted Sources
Want to read the original research? Here are the official sources:
