Think about this: You are selling your house. Next-door, the house is similar in size and is similarly situated; but its selling price is way above that of your sale by tens of thousands. A very good look is taken at that roof to find neat rows of solar panels installed on it. The buyer likes low electricity bills with sustainability value for decades.
So the question arises: Does a solar photovoltaic system increase a home's value? Whether it is worth the investment?
The Relationship Between a PV System and Home Value
According to SolarReviews' 2025 Solar Home Value Study, homes with solar panels installed sell for an average of approximately 6.9% more than those without.
So if the median price of a home is $416,900, installing solar systems could increase the home's value by almost $29,000.
This amount is a significant increase from Zillow's 2019 study (4.1%), indicating that with rising energy prices and environmental consciousness, more and more buyers are valuing solar-powered homes.
Why does solar power boost home prices?
1. The appeal of electricity savings
Homebuyers are often concerned about long-term living costs.
A home equipped with solar panels and a home photovoltaic energy storage system means lower or near-zero monthly electricity bills, which is undoubtedly a significant selling point.
2. Policy and market drivers
Electricity prices in many US states will continue to rise annually through 2030.
Twenty-nine states have implemented solar property tax exemptions, eliminating the need for homeowners to worry about increased taxes due to increased value.
Buyers are increasingly focused on the sustainable attributes of their homes, and solar systems are becoming a new selling point, similar to "smart homes" and "high-end renovations."
Key Factors Affecting Value Added
Not every solar home is currently fetching a premium price. However, there are several factors that may affect the value that solar can add to the property:
Location
- Value increments can be as high as 9.3% in Seattle;
- In California, with a high penetration rate, the average value increase in houses is 5.4%;
- In some states, such as Wisconsin, solar energy hardly has any influence on the sale price.
System Size
- The bigger the system, the greater the savings, so the prospect becomes attractive to the buyer.
- An average residential system would be about 6kW; however, an abode consuming large amounts of electricity would require a bigger configuration.
System Condition
- A new system is worlds apart from one that is near the end of its life.
- Solar panels that are of good quality (with a lifespan of 25 to 30 years or more, whichever is updated last) and well maintained offer a greater sense of security for the buyer.
Electricity Prices
- In places where electricity is expensive, like New York or Massachusetts, buyers may be willing to pay extra for energy-efficient homes;
- In the opposite case, the value addition may be limited.
Financing Options
- Systems paid for in cash or out-of-pocket or paid for in the form of a loan increase home values tremendously.
- With leases or PPAs (power purchase agreements), buyers may hesitate to take on the ongoing costs.
Potential Issues: Property Taxes and Return on Investment
homes with solar panels increases property value, but does it increase property taxes?
Typically, taxes increase with the assessed value of the property, potentially adding $160-$630 annually.
However, 29 states offer exemptions to mitigate the additional tax burden associated with solar power.
Overall, the increase in taxes is significantly less than the long-term electricity bill savings and home value appreciation that solar power brings.
Energy Storage Systems: Making Homes More Competitive
If homes with solar panels make homes more energy-efficient, then home photovoltaic energy storage systems are the key to making them more intelligent.
- Power generation during the day and storage for use at night: Minimizes grid dependence.
- Power outage protection: During extreme weather or grid fluctuations, energy storage devices can maintain basic household electricity needs.
- Long-term investment value: Energy storage not only reduces electricity costs but also enhances buyers' perception of technology and security.
For property owners looking to sell, installing a "PV + energy storage" system not only reduces electricity bills during use but also allows for a higher premium upon resale.
Summary
Back to the original question: Can homes with solar panels increase the sale price of your home?
The answer is yes. According to a 2025 study, the average increase in value is approximately 6.9%, but the specific amount depends on region, electricity prices, system size, and usage.
More importantly, home photovoltaic energy storage systems not only increase property values but also provide energy freedom, energy conservation, environmental protection, and a higher quality of life.
If you're considering installing photovoltaics on your home, consider starting with an integrated "solar panels + home energy storage" solution. This will provide you with both long-term energy benefits and increased property value.
