{"id":47,"count":7,"description":"<h2>Do solar panels increase home value?<\/h2>\r\nEnergy savings and environmental benefits are often the two main reasons for going solar, but a sneaky third reason is that solar panels can increase your home value and help it sell faster.\r\n\r\nIn fact, <a href=\"https:\/\/www.solar.com\/learn\/do-solar-panels-improve-home-value\/\" target=\"_blank\" rel=\"noopener\">studies by the Solar.com team<\/a>, Zillow, and the Lawrence Berkeley National Laboratory both found that homes with solar panels sell for more money than comparable homes without them. It\u2019s really just a matter of how much.\r\n\r\nIn this article, we\u2019ll cover just how much solar adds to your home value, how it affects your property taxes, and what to know about selling or buying a home with solar panels.\r\n<h2>How much value does solar add to your home?<\/h2>\r\nWhile every home is different, there are a few rules of thumb for how much solar panels increase your home value.\r\n\r\n<a href=\"https:\/\/www.zillow.com\/research\/solar-panels-house-sell-more-23798\/\" target=\"_blank\" rel=\"noopener\">Zillow<\/a> analyzed a year\u2019s worth of home sales in 2018-2019 and found that <strong>homes with solar panels sold for 4.1% more on average than comparable homes without<\/strong>. That amounted to a $9,274 markup on the median home value when the study was conducted.\r\n\r\nA 10-year study concluding in 2015 by the <a href=\"https:\/\/newscenter.lbl.gov\/2015\/01\/13\/berkeley-lab-illuminates-price-premiums-u-s-solar-home-sales\/\" target=\"_blank\" rel=\"noopener\">Lawrence Berkeley National Laboratory<\/a> found that <strong>solar panels add around $4 per watt of capacity installed<\/strong> \u2013 or $4,000 per kW. Here\u2019s how that adds up based on the size of your system:\r\n<table width=\"624\">\r\n<tbody>\r\n<tr>\r\n<td width=\"312\"><strong>Solar system size<\/strong><\/td>\r\n<td width=\"312\"><strong>Increase to home value from solar panels*<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">4 kW<\/td>\r\n<td style=\"text-align: left\" width=\"312\">$16,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">5 kW<\/td>\r\n<td style=\"text-align: left\" width=\"312\">$20,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">6 kW<\/td>\r\n<td style=\"text-align: left\" width=\"312\">$24,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">8 kW<\/td>\r\n<td style=\"text-align: left\" width=\"312\">$32,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">10 kW<\/td>\r\n<td style=\"text-align: left\" width=\"312\">$40,000<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n*<em>Based $4,000 per kW installed per Lawrence Berkeley National Laboratory.<\/em>\r\n<h3>Things that affect the value solar adds to your home<\/h3>\r\nOf course, the Zillow and Berkeley Lab figures are averages based on hundreds of thousands of home sales. The exact value that solar panels add to your home depends on a variety of factors, including:\r\n<ul>\r\n \t<li>Location of your home<\/li>\r\n \t<li>Size of your solar energy system<\/li>\r\n \t<li>Age of your solar panels and inverter<\/li>\r\n \t<li>Efficiency conversion rate of your solar energy system<\/li>\r\n \t<li>Existing market value of your home<\/li>\r\n<\/ul>\r\nIn general, the value added is roughly in line with the cost of the solar system and it changes over time.\r\n\r\n<strong>But here\u2019s the kicker:<\/strong> If you claim local incentives \u2014 such as <a href=\"https:\/\/www.solar.com\/learn\/going-solar-in-new-york-state\/\" target=\"_blank\" rel=\"noopener\">New York's 25% state tax credit<\/a> \u2014\u00a0then you essentially pay for 75% of the solar system and still receive 100% of the value it adds to your home.\r\n\r\nFor example, say you purchase a 6 kW solar system for $20,000 and it adds $20,000 in value to your home. A 25% state solar tax credit would be worth $5,000 and bring your net cost down to $15,000.\r\n\r\n<em>On paper, you paid $15,000 for something that added $20,000 in value to your home.\u00a0<\/em>\r\n\r\nAnd, remember, added home value is just the secondary means of solar savings. The primary means is energy bill reduction, which can add up to hundreds of thousands of dollars over the life of a solar system.\r\n\r\n<strong>Related reading:<\/strong> <a href=\"https:\/\/www.solar.com\/learn\/solar-energy-pros-cons\/\" target=\"_blank\" rel=\"noopener\">The Pros and Cons of Going Solar<\/a>\r\n<h3>Own your solar panels to add home value<\/h3>\r\nThe other thing to consider is that solar panels only increase your home value if you own them.\r\n\r\nIf you have a <a href=\"https:\/\/www.solar.com\/learn\/solar-financing\/\">solar lease or Power Purchase Agreement (PPA)<\/a>, the solar panels don\u2019t add appraisable value to your property, although it can make your home more attractive to buyers. (Who wouldn't want a low, predictable price for electricity?)\r\n<h2>Will going solar raise my property taxes?<\/h2>\r\nSo if solar increases your home value, the obviously follow up question is if that will lead to higher property taxes. After all, your property taxes are based on your home value and tend to increase as your home appreciates.\r\n\r\nThe good news is that, as of October 2022, there is some form of property tax exemption for solar panels in 34 states plus the District of Columbia.\r\n\r\n<img class=\"size-medium aligncenter\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2022\/10\/solar-property-tax-exemptions-map.png\" width=\"750\" height=\"533\" \/>\r\n\r\nSolar property tax exemptions vary from state to state. Many apply to 100% of the system cost for the lifetime of the system while others are limited to 5, 10, or 20 years.\r\n\r\nLook up your state or local tax code to get a better understanding of how solar panels will affect your property taxes.\r\n\r\n<em>This article does not constitute tax advice. Consult a tax professional for advice regarding solar property tax exemptions.<\/em>\r\n<h2>Selling a home with solar panels<\/h2>\r\nAs a <a href=\"https:\/\/www.solar.com\/learn\/is-solar-a-good-investment\/\" target=\"_blank\" rel=\"noopener\">long term investment<\/a>, the longer you own your solar panels, the more money you can save. But life is full of surprises and you never know when you\u2019ll need to pick up and move.\r\n\r\nThe great thing about solar panels is you can typically recover the <a href=\"https:\/\/www.solar.com\/learn\/solar-panel-cost\/\" target=\"_blank\" rel=\"noopener\">cost of the system<\/a> (and sometimes more) in the sale of your home. That\u2019s because you\u2019re basically selling the system to the homebuyer as part of the house -- just like a new roof, updated flooring, or remodeled kitchen.\r\n\r\nThe other great thing is that solar panels attract buyers and help your home sell faster. This is especially important in 2022 with skyrocketing mortgage rates eroding the pool of homebuyers.\r\n\r\nAccording to a <a href=\"https:\/\/www.zillow.com\/research\/buyers-consumer-housing-trends-report-2021-30039\/\" target=\"_blank\" rel=\"noopener\">2021 report by Zillow<\/a>, energy efficiency is becoming increasingly important among homebuyers.\r\n<table width=\"624\">\r\n<tbody>\r\n<tr>\r\n<td width=\"312\"><strong>Year<\/strong><\/td>\r\n<td width=\"312\"><strong>Share of Buyers that Consider Energy Efficiency Very or Extremely Important<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">2018<\/td>\r\n<td style=\"text-align: left\" width=\"312\">56%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">2019<\/td>\r\n<td style=\"text-align: left\" width=\"312\">56%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">2020<\/td>\r\n<td style=\"text-align: left\" width=\"312\">62%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: left\" width=\"312\">2021<\/td>\r\n<td style=\"text-align: left\" width=\"312\">67%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nLet\u2019s take a look from the buyer\u2019s perspective to see why solar panels are an attractive feature in a home.\r\n<h2>Buying a home with solar panels<\/h2>\r\nAs we established above, homes with solar panels tend to be listed higher than comparable homes without them.\r\n\r\nBut here\u2019s the important thing to remember: <em>You\u2019re buying a house without an electricity bill.<\/em>\r\n\r\nBased on the average household electricity consumption (10,632 kWh per year) and the average grid electricity price (16.7 cents per kWh), the average household spends $1,775 on electricity per year.\r\n\r\nWith a properly sized solar system, you pay zero.\r\n\r\nAnd that\u2019s just the first year. <a href=\"https:\/\/fred.stlouisfed.org\/series\/APU000072610\" target=\"_blank\" rel=\"noopener\">Grid electricity prices tend to rise over time<\/a>, and have at an average rate of <a href=\"https:\/\/data.bls.gov\/timeseries\/APU000072610?amp%253bdata_tool=XGtable&amp;output_view=data&amp;include_graphs=true\" target=\"_blank\" rel=\"noopener\">3.51% per year since 2017<\/a>. Based on typical utility rate increases, your annual savings would increase to:\r\n<ul>\r\n \t<li>$1,837 in Year 2<\/li>\r\n \t<li>$1,901 in Year 3<\/li>\r\n \t<li>$1,968 in Year 4<\/li>\r\n<\/ul>\r\n<strong>Here\u2019s what your cumulative electricity savings could look like if that trend continues:<\/strong>\r\n<table width=\"624\">\r\n<tbody>\r\n<tr>\r\n<td width=\"312\"><strong>Year<\/strong><\/td>\r\n<td width=\"312\"><strong>Cumulative electricity savings<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">1<\/td>\r\n<td width=\"312\">$1,775.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">2<\/td>\r\n<td width=\"312\">$3,612.30<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">3<\/td>\r\n<td width=\"312\">$5,514.09<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">4<\/td>\r\n<td width=\"312\">$7,482.64<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">5<\/td>\r\n<td width=\"312\">$9,520.28<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">10<\/td>\r\n<td width=\"312\">$20,832.85<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">15<\/td>\r\n<td width=\"312\">$34,275.12<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"312\">20<\/td>\r\n<td width=\"312\">$50,248.05<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nFor FHA homebuyers, seeking out an home with solar panels and other <a href=\"https:\/\/thisismortgage.com\/how-solar-can-help-you-afford-more-home-fha-eeh-stretch-ratios\/\" target=\"_blank\" rel=\"noopener\">energy efficiency upgrades can help you qualify for a larger loan<\/a>.\r\n\r\nIf you\u2019re in the housing market, you\u2019re probably already looking for a long-term investment. A house with solar panels is that in spades.\r\n\r\nPlus, you can bypass the 3-5 month process of going solar and start generating clean electricity the day you get your keys!\r\n<h2>Bottom line: Solar panels increase home values<\/h2>\r\nTo recap, it\u2019s well documented that solar panels increase home values. Exactly how much value they add is up to debate, and depends on factors like location, condition of the panels, and the value of your home.\r\n\r\nHomeowners typically recoup the cost of the solar systems in the sale of their home. In fact, since energy efficiency upgrades are becoming more popular among homebuyers, solar panels can help your home sell faster and for more money.\r\n\r\nAs a homebuyer, you can look at a house with solar panels as a house without an energy bill and an opportunity for long-term savings.\r\n\r\n<a href=\"https:\/\/www.solar.com\/dashboard\" target=\"_blank\" rel=\"noopener\">See how much you can save by going solar.<\/a>","link":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/","name":"Increase Your Home Property Value","slug":"do-solar-panels-increase-home-value","taxonomy":"category","parent":2,"meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do Solar Panels Increase Your Home Value? | Solar.com<\/title>\n<meta name=\"description\" content=\"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do Solar Panels Increase Your Home Value? | Solar.com\" \/>\n<meta property=\"og:description\" content=\"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\" \/>\n<meta property=\"og:site_name\" content=\"Solar.com\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2019\/07\/solar-lease-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"850\" \/>\n\t<meta property=\"og:image:height\" content=\"420\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Do Solar Panels Increase Your Home Value? | Solar.com\" \/>\n<meta name=\"twitter:description\" content=\"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2019\/07\/solar-lease-.jpg\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"CollectionPage\",\"@id\":\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\",\"url\":\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\",\"name\":\"Do Solar Panels Increase Your Home Value? | Solar.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.solar.com\/learn\/#website\"},\"description\":\"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/#breadcrumb\"},\"inLanguage\":\"en-US\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Solar Learning Center\",\"item\":\"https:\/\/www.solar.com\/learn\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Pros and Cons of Rooftop Solar in 2026\",\"item\":\"https:\/\/www.solar.com\/learn\/solar-energy-pros-cons\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Increase Your Home Property Value\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.solar.com\/learn\/#website\",\"url\":\"https:\/\/www.solar.com\/learn\/\",\"name\":\"Solar.com\",\"description\":\"Solar Learning Center\",\"publisher\":{\"@id\":\"https:\/\/www.solar.com\/learn\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.solar.com\/learn\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.solar.com\/learn\/#organization\",\"name\":\"solar.com\",\"url\":\"https:\/\/www.solar.com\/learn\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.solar.com\/learn\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/assets.solar.com\/wp-content\/uploads\/2021\/02\/Solar.com-Logo.jpg\",\"contentUrl\":\"https:\/\/assets.solar.com\/wp-content\/uploads\/2021\/02\/Solar.com-Logo.jpg\",\"width\":400,\"height\":400,\"caption\":\"solar.com\"},\"image\":{\"@id\":\"https:\/\/www.solar.com\/learn\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Solar.comOfficial\/\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Do Solar Panels Increase Your Home Value? | Solar.com","description":"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/","og_locale":"en_US","og_type":"article","og_title":"Do Solar Panels Increase Your Home Value? | Solar.com","og_description":"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.","og_url":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/","og_site_name":"Solar.com","og_image":[{"width":850,"height":420,"url":"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2019\/07\/solar-lease-.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_title":"Do Solar Panels Increase Your Home Value? | Solar.com","twitter_description":"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.","twitter_image":"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2019\/07\/solar-lease-.jpg","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"CollectionPage","@id":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/","url":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/","name":"Do Solar Panels Increase Your Home Value? | Solar.com","isPartOf":{"@id":"https:\/\/www.solar.com\/learn\/#website"},"description":"Do solar panels increase your home value? Solar panels will help you sell your home 20% faster than homes without solar panels.","breadcrumb":{"@id":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/#breadcrumb"},"inLanguage":"en-US"},{"@type":"BreadcrumbList","@id":"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Solar Learning Center","item":"https:\/\/www.solar.com\/learn\/"},{"@type":"ListItem","position":2,"name":"The Pros and Cons of Rooftop Solar in 2026","item":"https:\/\/www.solar.com\/learn\/solar-energy-pros-cons\/"},{"@type":"ListItem","position":3,"name":"Increase Your Home Property Value"}]},{"@type":"WebSite","@id":"https:\/\/www.solar.com\/learn\/#website","url":"https:\/\/www.solar.com\/learn\/","name":"Solar.com","description":"Solar Learning Center","publisher":{"@id":"https:\/\/www.solar.com\/learn\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.solar.com\/learn\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.solar.com\/learn\/#organization","name":"solar.com","url":"https:\/\/www.solar.com\/learn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.solar.com\/learn\/#\/schema\/logo\/image\/","url":"https:\/\/assets.solar.com\/wp-content\/uploads\/2021\/02\/Solar.com-Logo.jpg","contentUrl":"https:\/\/assets.solar.com\/wp-content\/uploads\/2021\/02\/Solar.com-Logo.jpg","width":400,"height":400,"caption":"solar.com"},"image":{"@id":"https:\/\/www.solar.com\/learn\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Solar.comOfficial\/"]}]}},"_links":{"self":[{"href":"https:\/\/www.solar.com\/learn\/wp-json\/wp\/v2\/categories\/47"}],"collection":[{"href":"https:\/\/www.solar.com\/learn\/wp-json\/wp\/v2\/categories"}],"about":[{"href":"https:\/\/www.solar.com\/learn\/wp-json\/wp\/v2\/taxonomies\/category"}],"up":[{"embeddable":true,"href":"https:\/\/www.solar.com\/learn\/wp-json\/wp\/v2\/categories\/2"}],"wp:post_type":[{"href":"https:\/\/www.solar.com\/learn\/wp-json\/wp\/v2\/posts?categories=47"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}