Installing solar panels can significantly increase a home’s market value by 4 to 6 percent and solar-powered homes sell faster, with data from reputable sources like Zillow, Redfin and the US Dept of Energy affirming the trend. As more house hunters, real estate professionals, and homeowners recognize the environmental and economic benefits of solar energy, properties with solar installations are increasingly viewed as premium assets in the real estate market.
According to Zillow, homes with solar energy systems sell for an average of 4.1% more than homes without them. This value boost means that for a median-priced home in the U.S., a solar installation could add roughly $9,000 to the property’s resale value. In California, for a median-priced home of $904,000, that value increase adds over $37,000 to the property’s resale value.
This increase is largely due to the financial savings associated with solar power, as it reduces or eliminates electricity bills. For potential buyers, this translates into long-term savings and a reduced carbon footprint, both of which are appealing in today’s eco-conscious housing market.
Redfin research supports similar findings, noting that homes with solar energy systems tend to sell faster than those without, as buyers recognize the immediate cost benefits and energy independence that solar systems provide. For instance, solar-equipped homes can generate substantial utility savings over time, depending on local energy rates and system capacity, which makes the property more attractive.
Additionally, federal and state incentives play a significant role in boosting the value of solar-equipped homes. Many states offer solar tax credits or rebates, making the initial installation costs more affordable for homeowners. These incentives not only increase the appeal of going solar but also assure potential buyers that they’re acquiring a valuable asset with potential financial returns. In regions with high electricity rates and abundant sunlight, such as California and Arizona, the impact of solar panels on home value is even more pronounced.
As the demand for sustainable living options grows, homes with solar systems are likely to see continued appreciation in value. Real estate agents often emphasize that solar panels are an investment with both immediate savings and long-term gains, which enhances the property’s desirability.
For homeowners considering solar installations, the prospect of a higher resale value, combined with energy savings, makes solar a smart financial decision.
Get a free quote today and see how much your home value is impacted by switching to solar.
