According to a Zillow study, installing solar panels can increase your home's value by about 4%. The exact amount depends on location, energy savings and solar appeal to potential buyers.
Let's take a look at the ways solar panels can affect your home value. A 2024 SolarReviews study found that homes with solar panels sold for 6.8% more than homes without solar panels. The lower monthly electric bills of energy-efficient homes with solar panels are attractive to home buyers.
Generally, bigger solar installations can increase home values more than smaller arrays. Larger installations typically generate more energy, leading to greater utility bill savings for homeowners and possibly qualifying them for additional incentives or credits.
A study by Zillow reported that homes with solar panels sell for 4.1% more, on average, than those without, and the increase in resale value is higher in certain cities, like New York. A 4.1% increase may not seem like a lot until you consider the size of the numbers involved — if you're selling a $500,000 home, that's an extra $20,500.
This is an increase from the 4.1% figure found by Zillow in a 2019 study. With the median value of a home in 2024 at around $417,000, solar panels could add over $28,000 in value! Keep in mind that every home's situation is different, and several factors will impact how much solar panels increase your home's value.
Do solar panels increase home value if financed with a loan?
Solar panels can still increase your home value when financed with a loan. The original homeowner will usually pay off any remaining solar loan balance at the time of sale. While loans could be passed on to a new buyer, it is not common practice and can add time and negotiations to the selling process.
With the median value of a home in 2024 at around $417,000, solar panels could add over $28,000 in value! Keep in mind that every home's situation is different, and several factors will impact how much solar panels increase your home's value. What factors determine how solar panels will affect my home value?