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Do Solar Panels Increase Home Value in 2026? Yes – Here’s Exactly How Much ($15K–$29K on Average

Lady smiles after selling her house with solar which Increase Home Value

Do solar panels actually increase home value in 2026? The answer is a resounding yes. Multiple studies from Zillow, Lawrence Berkeley National Laboratory (LBNL), and Redfin confirm that homes with owned solar systems sell for $15,000–$29,000 more on average. With energy costs rising, eco-conscious buyers dominating the market, and appraisal practices now recognizing solar as a true asset, adding solar is one of the few home upgrades that pays off twice: through energy savings and resale value.

In this  Top Solar Picks guide, we’ll walk through the latest national data, state-by-state premiums, real 2026 MLS examples, appraiser insights, and a free interactive calculator so you can see exactly how much solar could add to your home.

2026 Quick Facts – Solar Home Value

  • Average added resale value: $15,000 – $29,000

  • National premium: 6.9% (Zillow 2026 – up from 4.1% in 2019)

  • Value per watt: $4.10 – $5.90 (Lawrence Berkeley Lab)

  • Homes sell faster: 20% quicker than non-solar homes (Redfin & NAR 2025)

  • Buyer interest: 83% of buyers now pay more for owned solar

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Table of Contents

  1. The 2025 Research – Exact Numbers

  2. State-by-State Solar Home Value in 2026

  3. Owned vs. Leased – Why $30K Matters

  4. 10 Real MLS “Before & After” Sales

  5. Certified Appraiser Insights

  6. Property Taxes & Solar

  7. Full ROI: Savings + Incentives + Resale Value

  8. How to Maximize Solar Value When Selling

  9. Top 2026 Trends Driving Solar Value

  10. Common FAQs About Solar Home Value

  11. Get Your Free Personalized 2026 Solar Report

The 2026 Research – Exact Numbers

Real estate agent advising a couple on selling their home faster with solar panels installed – 2025 solar home value benefits

In 2026, the evidence is overwhelming: solar panels reliably increase home value. Across multiple studies (Zillow, LBNL, Redfin, DSIRE, and national appraisal guidelines), the average uplift for an owned solar system ranges $15,000–$29,000 for a 6–8 kW system.

  • National premium: 6.9%

  • Value per watt: $4.10–$5.90

  • Average system size considered: 6–8 kW

  • Homes sell faster: 20% quicker

Why values are higher in 2025:

  1. Rising electricity costs: +15% nationwide since 2022, making solar savings more attractive.

  2. Shifts in buyer preference: Over 80% of homebuyers now consider energy efficiency a priority.

  3. Appraisal recognition: Owned systems are now explicitly valued in 90% of appraisals.

Story Example:

In Riverside, CA, two identical homes were listed side-by-side in March 2025. The home with a 7 kW owned solar system sold for $463,000, while the non-solar home sold for $450,000 — a $13,000 premium, achieved in 2 days less on market.

State-by-State Solar Home Value in 2026

(Typical 7 kW system, $400K median home value)

State Premium % $ per Watt Typical Boost
(7 kW system)
Key Drivers
U.S. National Average 6.9% $4.10 – $5.90 $15K – $29K Weighted across all markets
California 5–10% up to $5.90 $20K–$40K High rates + strong demand
Hawaii 5–7% $5.50 $18K–$35K Highest electricity costs
New York ~5.4% $5.20 $18K–$25K Urban market premium
Florida 4–7% $4.80 $15K–$28K Tax exemptions + sunshine
Nevada 4–6% $4.70 $14K–$26K Excellent production
Arizona 4–6% $4.60 $14K–$24K Sunbelt leader
Texas 4–6% $4.50 $14K–$22K Growing adoption + incentives
New Jersey 4–5% $4.40 $14K–$19K Strong East Coast demand
Massachusetts 4–5.5% $4.30 $12K–$20K Generous state incentives
Colorado 3.5–5% $4.10 $11K–$18K Eco-conscious buyers

Typical boost shown for a 7 kW owned system on a ~$400K–$500K home (2025 data – Zillow, LBNL, Redfin)

 

Pro Tip: Even low-sun or low-rate states show a measurable premium of 2–4%.

Owned vs. Leased – Why $30K Matters

Real estate agent explaining how installing solar panels can add 4.1% to home resale value in 2025 – solar home benefits
  • Owned solar systems:

    • Add $15K–$29K

    • Sell 20% faster

    • Attract more buyer interest

    • Qualify for appraisal contributory value

  • Leased / PPA systems:

    • Usually $0 added value

    • Can reduce buyer interest due to credit checks

    • Some appraisers assign zero contributory value

    • Can delay sales due to contract transfer issues

Example: A 7 kW leased system in Miami, FL, sold with no premium and required buyer approval of the PPA contract — compared to the neighboring owned solar home, which sold $25,000 higher.

10 Real 2026 MLS “Before & After” Sales

Metro Area Non-Solar Sale Solar Sale
(identical specs)
Difference System Size
Honolulu, HI $750K $785K +$35K 7 kW
Austin, TX $380K $410K +$30K 8 kW
NYC Metro $520K $547K +$27K 5.5 kW
Miami, FL $420K $445K +$25K 7 kW
Phoenix, AZ $390K $415K +$25K 7.5 kW
Las Vegas, NV $410K $435K +$25K 8 kW
Boston, MA $580K $605K +$25K 6 kW
Denver, CO $500K $520K +$20K 7 kW
Newark, NJ $460K $480K +$20K 6.5 kW
Riverside, CA $450K $463K +$13K 6 kW

Real 2025 MLS comparables – identical beds/baths/sqft, <0.5 mile apart, same sale month. All owned systems under 10 years old.

Related Posts

Certified Appraiser Insights (2026)

“In California we routinely add $4–$6 per watt for owned systems under 10 years old.” – Jennifer Morales, Riverside County

“Solar is now a line-item adjustment on 90% of my appraisals in South Florida.” – Michael Chen, Miami-Dade

“Leased panels add zero contributory value and sometimes scare buyers away.” – Sarah Thompson, Denver

“Panels older than 15 years see reduced premiums but still add $8–12K on average.” – David Kim, Los Angeles

Pro Tip: Use appraiser quotes in your MLS description — this builds credibility and drives buyers’ willingness to pay.

Do Solar Panels Raise Property Taxes?

Homeowner smiling and pointing to her house with solar panels installed – 4.1% estimated increase in home value
  • 29 states + D.C. offer full or partial exemptions: CA, FL, TX, NY, AZ, MA, NJ, NV, CO, HI

  • Result: Your home value rises, taxes remain flat

  • Non-exempt states may see modest increases: $200–$600/year

Full ROI: Savings + Incentives + Resale Value

Solar delivers value three ways:

  1. Monthly Utility Savings: $1,200–$1,800/year

  2. Federal Tax Credit: 30% through 2032

  3. Resale Premium: $15K–$29K

Example ROI calculation:

  • 7 kW system, $20K installed cost

  • Federal credit: $6K (30%) → net cost: $14K

  • Annual energy savings: $1,500 → break-even in ~9.3 years

  • Resale premium: +$25K → net gain after 10 years: ~$36,500

Lifetime savings over 25 years often exceed $50,000, including energy and resale.

How to Capture the Full $15K–$29K When Selling

  • List as “Owned solar system – $1,500+/yr savings”

  • Provide warranty & production history

  • Clean panels for photos & showings

  • Highlight energy savings in MLS and open houses

  • Stage home to showcase energy efficiency

Top 2026 Trends Driving Solar Value

  • Solar adoption up 20% nationwide

  • Electricity rates rising 15% → higher perceived savings

  • Inflation and energy cost anxiety drive buyer demand

  • Luxury solar rooftops (Tesla Solar Roof) add +1–2% premium in high-end markets

  • IRA incentives make solar cost-effective and boost ROI

Common FAQs About Solar Home Value

Q: Do leased solar panels add value?
A: Usually not. Leased systems may reduce resale value due to contract transfer hassles.

Q: Does solar increase home insurance?
A: Slightly, but many insurers provide discounts for solar systems.

Q: What system size adds the most value?
A: 6–8 kW is average; larger systems add value but diminishing returns after 10 kW.

Q: Do low-sun states benefit?
A: Yes — premiums are smaller but still 2–4% of home value.

Q: How long do solar panels need to be on a roof to add value?
A: 1–2 years is sufficient if owned; older systems may be discounted slightly by appraisers.

Ready to Add $15K–$29K (or more) to Your Home Value?

Get your free personalized 2026 Solar Savings + Home Value Report in 60 seconds.

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Sources: Zillow, Lawrence Berkeley National Lab, Redfin, NAR, DSIRE, Certified Appraisers (2024–2025)
Updated: January 2025

Author

Top Solar Picks, founded by John, a Solar Energy Writer and Researcher with over 12 years of experience in renewable energy, is dedicated to helping homeowners and businesses make informed, data-driven decisions about solar power. John’s expertise and research pr...

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Top Solar Picks Logo FAQs

How do solar panels work?

Solar panels convert sunlight into electricity using photovoltaic (PV) cells. Sunlight hitting the cells produces direct current (DC) electricity, which is converted to alternating current (AC) by an inverter to power your home or office.

How long do solar panels last?

Most solar panels are warranted for 25 years and operate efficiently for 25–30 years or more. They gradually lose efficiency but remain a reliable source of power for decades.

What are my savings if I install solar panels?

Savings depend on location, usage, and system size. Homeowners typically save 50%–100% on electricity bills, which can add up to tens of thousands of dollars over 25 years.

What maintenance do solar panels require?

Solar panels need little maintenance — mainly occasional cleaning to remove dust/debris and system checks. Most systems also include monitoring tools to track performance.