Does Solar Increase the Value of my Home? I PremierImprovementsOne.com I Solar Home Value I
Updated: Sep 1
Before installing a residential solar system, you may stop to wonder: Do solar panels increase home value? It turns out, the answer is a resounding yes.
We'll go over how much solar panels can increase the value of your home, as well as how that increased value affects property taxes and whether buyers are really looking for homes with solar energy systems. With this knowledge, you can make an informed decision about whether solar panels are a good investment for your home.
How Much Do Solar Panels Increase Home Value?
Many homeowners, buyers, and appraisers know that the installation of solar panels and solar batteries can increase a property's market value. In fact, one study confirmed that solar installations increase a home's resale value by up to $5,911 for each kilowatt of solar panels installed, and another estimated an increase of 4.1% of the home's value.
Where do these figures come from, exactly? To begin with, consider a Zillow study, which notes that homes with solar installations tend to sell for about 4.1% more than homes without. Of course, this is an average. Some locations show a higher value-add (5.4% for New York City), and some show lower (2.7% for Riverside, California). An older study from Lawrence Berkeley National Laboratory reveals an increase in resale value of approximately $5,911 for each kilowatt of solar power that's installed.
So, how much do solar panels increase home value? Let's take a look at some averages:
Home Solar System SizeAmount Solar Panels
Increase Home Value*
It's worth noting that these amounts are roughly in line with the total cost of a solar panel system, which may be just the incentive you need to finally take the plunge into solar power.