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Data last verified: August 2026Do Solar Panels Increase Home Value? The Research
The four landmark studies
| Study | Finding | Example (median home) |
|---|---|---|
| Zillow (2019, millions of sales) | Solar homes sell for 4.1% more on average | $400k home → +$16,000 |
| LBNL Tracking the Sun (22,000+ sales, 8 states) | Buyers pay ~$4 per watt of installed capacity | 7 kW system → +$28,000 |
| NREL | Premium in 100% of markets studied; stronger in high-rate areas | No market showed a net negative |
| Appraisal Journal rule | $20 of added value per $1 of annual energy savings | $1,500/yr savings → +$30,000 |
| SolarReviews / Zillow update (2025) | Premium rose to 6.9% (~$25,000) | Average sale +$25,000 |
Premium by state (2026 estimates)
| State | Premium per kW | 9 kW system premium |
|---|---|---|
| California | $5,000–6,000/kW | $45,000–54,000 |
| Massachusetts / Connecticut | $4,500–5,500/kW | $40,500–49,500 |
| New Jersey / New York | $4,000–5,000/kW | $36,000–45,000 |
| Colorado | $3,500–4,500/kW | $31,500–40,500 |
| Texas / Florida / Arizona | $3,000–4,000/kW | $27,000–36,000 |
| National average | $3,500–4,500/kW | $31,500–40,500 |
High-rate states show the largest premiums because buyers immediately value lower operating costs. Estimates compiled from LBNL/Zillow/NREL research and market data (retrieved Aug 2026).
Quick value calculator
Two rules of thumb you can run yourself:
- $4-per-watt: system kW × 1,000 × $4 = added value (e.g., 8 kW × $4,000 = $32,000).
- $20-per-$1: annual electricity savings × $20 = added value (e.g., $1,800/yr savings × $20 = $36,000).
Owned vs leased — the decisive difference
The premium research applies to owned systems (cash or paid-off loan). Leased or PPA systems usually add little to resale value: buyers must take over the lease contract, appraisers treat the savings as flowing to the lease company, and some buyers walk away. If resale value matters to you, ownership is the structure that captures it. See the lease vs buy vs PPA guide.
Why solar adds value
- Lower (often near-zero) electricity bills for 15–25 years — a predictable savings stream with present value.
- Protection against rate increases (2023–2026 saw +3% to +6% annual residential rate hikes).
- Transferable 25-year panel warranties and 10–25-year inverter warranties.
- Buyers avoid the hassle and disruption of a new install.
Also factor in: property taxes & insurance
Most states exempt the added value from property-tax reassessment (see each state guide), but homeowners insurance typically rises $50–200/year — see the insurance-by-state matrix for your state’s risk profile. Net of those costs, owned solar remains one of the few home upgrades that returns close to 100% of its cost in added value.