Do Solar Panels Increase Home Value?
Short answer: research generally shows owned solar systems are associated with a home value premium, though the exact amount depends on your market, system age, and whether the system is owned or leased.
Quick answer: Studies from sources like Zillow and the U.S. Department of Energy’s Lawrence Berkeley National Laboratory have found owned solar systems associated with measurable resale premiums in many markets, though results vary by region and shouldn’t be treated as a guaranteed fixed dollar amount for every home.
This is a reasonable question for anyone weighing solar as a long-term investment rather than a pure utility-bill decision, and the honest answer involves some nuance around ownership structure.
What tends to add value
- Owned systems, paid off. A system you own outright, with no ongoing loan or lease payment, is generally viewed most favorably by appraisers and buyers since it’s a straightforward asset transferring with the home.
- Lower buyer utility costs. Especially in a state with Florida’s electricity rates, the promise of a lower monthly bill is a tangible selling point for many buyers.
- System age and remaining warranty. A newer system with most of its warranty life remaining is viewed differently than one nearing the end of its production guarantee.
What can complicate the sale
| Ownership type | Effect on sale |
|---|---|
| Owned outright | Generally straightforward, transfers as part of the home |
| Loan-financed, paid off before sale | Generally straightforward, similar to owned outright |
| Loan-financed, balance remaining | Buyer may need to assume the loan, or the balance is settled at closing |
| Leased or PPA | Buyer typically needs to qualify for and assume the lease/PPA agreement, which can complicate some transactions |
The realistic takeaway
Owning your system outright tends to be the cleanest scenario for resale, which is one factor worth weighing alongside the financing comparison. We’re happy to talk through how ownership structure specifically affects a future sale as part of your evaluation.
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Frequently asked questions
Do solar panels really increase resale value?
Research from sources including Zillow and the U.S. Department of Energy’s Lawrence Berkeley National Laboratory has found owned solar systems associated with resale premiums in many markets, though the exact amount varies by region and home.
Does a leased solar system add the same value as an owned one?
Not typically to the same degree. Leased or PPA systems require a buyer to qualify for and assume the agreement, which can complicate a sale compared to a system owned outright.
What happens to my solar loan if I sell my home?
Depending on the loan terms, the buyer may need to assume the remaining balance, or it may be settled at closing. This varies by lender and loan product.
Is it better to pay off a solar loan before selling?
Generally, a system owned outright with no remaining loan balance tends to be the most straightforward scenario for a sale, though this depends on your specific situation and timeline.
Does system age affect home value contribution?
Yes. A newer system with most of its warranty and production guarantee remaining is generally viewed more favorably than one nearing the end of its expected performance life.
Related guides
- Solar financing: cash, loan, or lease?
- What happens to solar panels when you sell your home?
- Home solar, battery and EV charging in Florida
- Solar systems
- Battery storage
- Florida solar by city
Figures on this page are typical industry averages for planning purposes and assume Florida’s 14.5¢/kWh average residential rate and 5.5 peak-sun hours per day. Your actual numbers will differ based on your utility, roof, and system — request a free evaluation for figures specific to your home.