Installing solar panels can be a smart investment—not just for energy savings, but for your property value as well. Many homeowners wonder, “Do solar panels increase my property value?” The short answer is: yes, in most cases, they do. According to multiple studies, homes with solar panels sell for more than those without, with some estimates showing a 4%–6% boost in resale value. However, the actual increase depends on a number of key factors.
In this article, we’ll break down how solar affects your home’s market value, what factors impact that value, how it may affect your taxes, how financing plays a role, and how much value solar could realistically add to your home.
Factors that impact value
While solar panels typically add value, the amount depends on several conditions:
- System ownership
- Local energy costs
- Solar incentives in your area
- System size and condition
- Market awareness
Does it impact taxes?
Adding solar panels may increase the market value of your home, but that doesn't necessarily mean your property taxes will go up. Many states offer property tax exemptions for renewable energy systems.
For example, in states like New Jersey, homeowners are exempt from paying increased property taxes on the added value solar panels bring. This means you can enjoy a higher home valuation without paying more in annual taxes. However, this varies by state and even by municipality, so it’s always best to consult your local tax assessor.
Does financing impact my house sale price?
Yes, how you pay for your solar system can affect your home’s resale value and how easy it is to sell.
- Purchased systems: If you've paid in full, the system is considered a home improvement and is likely to increase your sale price.
- Financed systems : Loans can complicate things if they haven’t been paid off. Buyers may request that you pay off the remaining loan balance before closing, or they may be hesitant to assume the debt.
- Leased systems: These may lower buyer interest unless the lease is easy to transfer. Some buyers don’t want the added commitment of monthly lease payments, even if the utility savings are strong.
The bottom line: ownership equals more flexibility and more value at the time of sale.
How much will solar add to my value?
National studies have shown that homes with solar energy systems sell for approximately 4% more than comparable homes without solar. In higher-cost markets, that percentage can be even greater. According to Zillow, the average home value increase from solar panels is around $9,000–$15,000 depending on system size and location.
For example:
- On a $400,000 home, a 4% boost equals $16,000 in added value.
- On a $300,000 home, that would be about $12,000.
This means solar panels not only pay for themselves over time through utility savings—they can also give you a competitive edge if you plan to sell your home in the future.
Final thoughts
So, do solar panels increase my property value? Absolutely—but the amount can vary depending on ownership, local market factors, and how the system was financed. With proper planning, solar can provide both short-term savings and long-term return on investment by increasing your home's market appeal.
If you're considering solar and want to learn more about how it could impact your home’s value, contact the team at Trinity Solar. We're here to help you navigate the benefits, incentives, and financing options available in your area.
