If you’re thinking about solar, you’re probably asking a very practical question: will this show up in my resale price, or is it “nice to have” but hard to monetize?
Short answer: in many markets, yes—owned rooftop solar is often associated with a resale premium. The most-cited public estimates typically land in the ~4–7% range, but the number moves based on ownership (owned vs. leased), system age, roof condition, and how clearly the system’s value is documented for buyers and appraisers.
What the research actually says
No single study “settles” the question for every home, because housing markets, electricity prices, and solar adoption look very different from one region to another. But a few widely referenced sources give a useful reality check:
| Source | What it found | How to use it |
|---|---|---|
| Zillow (national analysis) | Homes with solar sold for ~4.1% more on average than comparable homes without solar; premium varies by metro. | Good benchmark for “typical premium,” especially when your market resembles metros Zillow analyzed. |
| Berkeley Lab (multi-state sales study) | News release highlights a premium of about $15,000 for a “typical” PV system in the dataset. | Useful when talking to appraisers: it supports the idea that PV value can be measured and included. |
| Redfin (consumer guidance) | Notes solar can increase value, citing up to ~6.9%, and also describes a common range of ~4–7% depending on factors. | Helpful framing for sellers: buyers care about ownership and clean transfer, not just “panels on a roof.” |
Why these numbers differ: studies use different time windows, different geographies, and different ways to control for home features. Even within one source, premiums vary by market. Zillow, for example, shows meaningful metro-to-metro variation rather than a single “solar premium” that applies everywhere.
Takeaway: Treat published premiums as a starting point. Your realized premium depends on whether your solar looks like a low-risk asset to the next buyer.
The 6 factors that most affect your solar resale premium
1) Owned vs. leased
From a buyer’s perspective, an owned solar system is closer to a home improvement: it comes with the property, and the buyer benefits from lower operating costs. A leased system or PPA is different: it’s a contract the buyer may have to qualify for and assume, which can slow down or complicate closing.
If you’re still deciding how to go solar, compare options carefully—especially if you might sell before the system is “old news.” (For renters and owners weighing different approaches, see Balcony solar kits vs rooftop PV.)
2) System size, production, and whether it matches the home
Appraisers and buyers don’t pay for watts on paper—they pay for credible savings. A right-sized system that offsets a meaningful portion of the home’s usage is easier to explain than a system that was oversized “because the roof allowed it.”
If you need a quick sizing sanity-check, start with consumption and sun hours rather than roof area. LinkSolar’s FAQ breaks down a simple way to estimate required panel wattage: How much solar panel power do I need?
3) System age, condition, and warranty transferability
Most modern PV modules are designed for multi-decade service, but value is still time-sensitive. Buyers will ask:
How old is it? Is it producing normally? What’s the warranty status—and can it be transferred?
If your system is older or the roof will need replacement soon, buyers may discount the system because they anticipate extra work (panel removal/reinstall) during reroofing.
4) Roof condition and installation quality
A solar system attached to a roof that’s near end-of-life can create anxiety during inspections. Even if the panels are fine, buyers may price in the logistics of reroofing. Clean workmanship, tidy conduit runs, and a professional install that passed inspection reduces that perceived risk.
5) Local electricity prices, incentives, and market expectations
In higher-rate areas, the same kWh production translates into higher dollar savings, which often supports stronger buyer willingness to pay. Market maturity matters, too: where solar is common, buyers and agents are more likely to treat it as a standard feature rather than a curiosity.
6) Paperwork and “appraisal readiness”
This is where many sellers lose value. If solar is hard to understand, it gets discounted. If it’s easy to verify, it gets credited.
How to make solar “show up” in the appraisal
Think of appraisal as a documentation exercise. Your goal is to make the system’s value easy to verify in one folder (digital is fine):
- Proof of ownership (paid invoice, loan payoff, or other ownership documentation).
- Permit and final inspection sign-off (or equivalent local approvals).
- System spec sheet: module model, inverter model, system size (kW DC), and install date.
- Production evidence: monitoring screenshots or a simple annual kWh report.
- Warranty documents and transfer instructions.
If you’re in a region where “plug-in solar” or nonstandard interconnections are a topic, don’t leave safety/compliance vague. A buyer who feels uncertain will discount the asset. For a plain-language overview of why outlet backfeed is not a casual DIY step in the U.S., see Plug-in solar panels in the US: what NEC allows.
A simple premium estimate by system size
One practical way to think about value is: “What would a reasonable buyer pay for an owned system that lowers operating costs?” Berkeley Lab’s public discussion includes a typical premium figure in the dataset, and many valuation conversations still anchor around the idea that PV can add meaningful value when it’s owned and verifiable.
The table below is not a guaranteed appraisal outcome—it’s a quick way to sense whether a proposed premium is in the realm of “plausible,” assuming a well-installed, owned system in a supportive market:
| System size | Illustrative premium range | Notes |
|---|---|---|
| 4 kW | $10,000 – $16,000 | More common on smaller homes or partial offsets. |
| 6 kW | $15,000 – $24,000 | Often a “sweet spot” for many households depending on usage. |
| 8 kW | $20,000 – $32,000 | Can be compelling where electricity prices are high and usage is substantial. |
When solar may not increase value
Solar is not automatically a premium feature. The most common situations where value is muted:
Leases/PPAs with unclear transfer terms. Buyers worry about qualification, escalators, and fees.
Unpermitted or poorly documented installs. If the buyer can’t verify safety and legality, they negotiate harder.
Roof near end-of-life. Buyers see “future cost” rather than “future savings.”
Older, underperforming systems. If monitoring shows weak output, the system looks like a liability.
Seller checklist: make your solar buyer-ready in one afternoon
- Confirm the system is owned (or prepare a clear lease/PPA transfer plan).
- Export a 12-month production summary from monitoring.
- Put permits, inspection, and spec sheet in a single folder.
- Document roof age and condition (and repairs if relevant).
- Print warranty transfer steps and installer contact info.
- Add a one-page “Solar Summary” for showings: size (kW), install year, typical monthly savings.
FAQ: Solar panels and home value
Do solar panels increase home value in every market?
Often, but not universally. Premiums vary by location, electricity prices, and buyer expectations. Use published benchmarks as context, then sanity-check against local comps and agent feedback.
Do leased solar panels increase home value?
Leased/PPA systems can be neutral or even negative for some buyers because they introduce a contract. Owned systems are generally cleaner for resale.
How much value could solar add to a $500,000 home?
If your market behaves like published averages, a mid-single-digit premium could translate into tens of thousands of dollars. But ownership, roof condition, and documentation still decide the final outcome.
Will solar make my home harder to sell?
Owned solar is usually a selling point. The friction most commonly shows up with leases/PPAs, missing permits, or unclear system performance.
Do batteries add additional resale value?
Sometimes—especially in outage-prone areas or where time-of-use pricing is common. But resale premiums for storage are less consistently documented than for owned PV, so treat it as market-dependent.
Do solar incentives matter for resale?
They matter indirectly because incentives reduce the homeowner’s net cost and accelerate payback. In the U.S., the IRS Residential Clean Energy Credit is commonly discussed as a 30% credit for qualifying expenditures in eligible years—always confirm current rules before relying on it.
Bottom line
Solar can increase home value—but the premium is earned, not automatic. If your system is owned, properly permitted, and easy to understand (clear production + clean paperwork), buyers are far more likely to treat it like a real asset rather than a question mark.
If you’re earlier in the decision process and you’re not sure whether rooftop PV is the right “shape” for your situation, start with a simple comparison and sizing logic: Balcony solar kits vs rooftop PV and How much solar panel power do I need?
Note: This article is for general information only and is not financial, tax, or legal advice. For a sale decision, combine local comps, agent input, and a solar-aware appraiser.
