Do Homes with Solar Panels Sell for More?

Renewable energy is becoming more common in the average American household. As grid-sourced utilities become increasingly volatile and expensive, more homeowners are embracing solar energy solutions to minimize costs and ensure greater energy independence. Potential home buyers are also feeling the burn, and many are searching for properties that offer enhanced sustainability and long-term savings. In turn, solar panels may be able to increase your home value to amplify your ROI. 

Quantifying the Value Addition of Solar Panels

There’s plenty of recent data to support the finding that solar panels can increase home value. In 2019, Zillow released a study showing that homes with solar panels sold for about 4.1% more  – or an additional $9,274 – than comparable properties. A 2024 SolarReviews study found that houses equipped with solar energy systems typically sell for about 6.8% more than those with traditional utilities. Meanwhile, a 2025 study by Solar Insure found California homes with solar panels sold between 5% and 10% more than homes without them.

Factors Influencing Increased Home Value with Solar Installations

What are the driving forces behind solar energy enhancing home resale value? Let’s explore why renewable energy has such an effect on home prices.

Energy Cost Savings

Thanks to fluctuating fossil fuel prices, mounting political instability, and aging infrastructure, energy prices are on the rise. In turn, more home buyers are searching for cost-effective solutions to rising costs. Solar energy systems can decrease monthly electricity bills by up to 100%. If your utility provider offers net metering, you can compound your savings by selling surplus power back to the grid in exchange for credits on future expenses. 

Many potential home buyers understand the intrinsic value of solar arrays and are willing to pay a premium for the promise of long-term savings. 

Environmental Considerations

Sustainability is another key factor for many in the market for a new home. Eco-conscious buyers are often willing to pay more for properties with reduced carbon footprints. This may be especially true for younger demographics, who are typically more concerned about the effects of climate change. As the global temperature continues to climb, we can expect to experience more frequent severe weather events, rising sea levels, and loss of critical indicator species. Solar panels may increase your home value by helping potential buyers offset their own fossil fuel consumption, taking an effortless step toward a greener future. 

Market Demand

The value increase associated with solar panels can vary by location. In regions with higher electricity rates or strong support for renewable energy, homes with solar installations may see greater value appreciation. For example, Maryland’s Renewable Energy Portfolio set the goal of reaching 50% renewable energy by 2030. The local government encourages homeowners to embrace solar and other sustainable solutions through state-funded grants and rebates. 

Of course, location isn’t the only catalyst behind market demand. Many homeowners are learning about the fragility of the energy infrastructure in the US as grid interruptions become more common and political turmoil threatens access to traditional electricity sources. Solar presents a sustainable solution for energy independence that grid-sourced power can’t offer. We expect this feature to become even more integral as demand for energy surges nationwide.

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Additional Benefits of Solar-Equipped Homes

Selling a home with solar panels can benefit everyone involved in the transaction. Here are more of the ways solar energy can enhance the process: 

Faster Sale Process

In addition to an increase in home value, properties with solar panels may also sell faster due to their appeal to energy-conscious buyers. Built-in energy savings are a significant selling point, and buyers may be more compelled to purchase quickly when they find a home that presents a lower cost of ownership. As such, a renewable energy system can give your property a competitive advantage in a hot real estate market. 

Long-Term Investment

Beyond immediate resale value, solar panels offer ongoing energy savings, enhancing the overall return on investment for homeowners. Many buyers are waking up to these financial incentives since renewable energy protects against rising utility rates and market fluctuations by minimizing reliance on fossil fuels. When a solar panel system includes battery backup, buyers can save even more by avoiding peak-hour electricity rates. These accessories also help homeowners keep the lights on during grid-wide interruptions and blackouts. 

Considerations for Homeowners Contemplating Solar Installation

If you’re thinking about installing solar panels to increase your home’s value before putting it on the market, you’ll want to understand the complete picture to make an informed decision. 

Initial Investment

The upfront cost of a solar panel array can be substantial, but various federal and state incentives are available to offset expenses, including: 

• Federal Investment Tax Credit (ITC): You can claim up to 30% of initial investment costs on federal tax returns. 
• State-Funded Clean Energy Grants: Various states offer rebates for eligible renewable energy systems. 
• Property Tax Exemptions: If solar panels increase your home value, you won’t pay additional property tax on this premium. 
• Sales and Use Tax Exemptions: Some states don’t charge sales and use taxes on qualifying solar energy systems. 
• Net Metering Programs: If your utility company offers net metering, you can sell excess energy back to the grid for others to use. 
• Solar Renewable Energy Credits (SRECs): As your system generates solar energy, you may have the opportunity to sell SRECs to companies hoping to offset their carbon footprints. 

Let’s imagine you live in Maryland and purchase a 5MW solar array for an up-front cost of $17,000. After claiming the 30% federal solar tax credit and redeeming the Maryland Solar Access Grant, which reimburses up to $750 per megawatt, your total expenses will come to $8,150. That means you’ve saved $8,850 – over 50% of your initial investment – before factoring in long-term energy savings.

System Maintenance

While solar panel systems are typically low-maintenance, proper upkeep ensures optimal performance and preserves the added property value. Regular cleanings and inspections help keep minor problems from developing into costly disasters. Assess all seals and flashing where your mounting hardware meets your roof, and address any issues right away. Live monitoring can also help you identify drops in production capacity that may signal a more urgent concern. 

Local Market Dynamics

Homeowners should assess local real estate trends and energy costs to gauge potential value increases from solar installations. Different states may offer drastically different financial incentives, and some places haven’t yet caught up with the global solar energy market. However, states with high utility rates and strong Renewable Portfolio Standards may provide greater savings for solar panels to increase your home value. 

Enhance Your Home Resale Value with Solar Energy World

Ready to increase your home value with solar panels? Solar Energy World is here to help. We can help assess your property’s solar potential, design a customized array to meet your needs, and ensure a seamless installation process to start generating your own clean energy. Start the journey today with a free solar estimate!