Solar Panels Boost Home Values By Nearly $30,000—Yours Could Be Worth More

Most homeowners looking to sell their property want to get top dollar, and installing solar panels might be a smart way to boost value. According to a 2025 SolarReviews study, homes with solar panels sell for 6.9% more on average than homes without solar panels.

Installing solar panels can increase your home’s value by 6.9% on average, giving sellers a competitive edge in today’s market.

The financial benefit is significant. With the median home value at $416,900 in 2025, solar panels could add nearly $29,000 in value. The Lawrence Berkeley National Laboratory found homebuyers consistently pay premiums of approximately $4 per watt of installed solar capacity.

System size matters when it comes to added value. A 6-kilowatt solar PV system can add as much as $24,000 to home resale value. Larger systems that produce more electricity typically add more value to homes. An 11-kilowatt system costs about $22,000 before incentives, potentially adding more value than its cost.

Not all solar panels are created equal regarding home value. Homes with owned solar systems sell for 5-10% more than comparable homes without solar panels. However, homes with leased or third-party-owned solar panels didn’t sell for more than comparable homes without solar.

The age of the system also affects the value increase. Systems under five years old sold for 7-9% more than homes without solar, while older systems (over five years) sold for 5-6% more. The typical 25-30 year lifespan of solar panel systems provides long-term value for potential homebuyers.

Location plays a key role in determining how much value solar adds. California homes around $750,000 could see $37,500-$75,000 increases with solar. States with higher electricity costs generally see greater value increases from solar installations. Seattle, WA has demonstrated the highest value increase at 9.3% compared to other regions.

The National Renewable Energy Laboratory reports that solar increases home value by $20 for every $1 reduction in annual utility bills. A system saving $400 annually would add approximately $8,000 in property value. Solar installations often yield 100% cost recovery, making them financially superior to kitchen renovations that typically recover only 75% of their cost.

Twenty-nine states offer some form of solar property tax exemption, making the financial benefits even more attractive for homeowners considering solar installations.