Does Solar Increase Home Value? What the Data Shows
By Solar Cost Predictor Team · June 9, 2026 · 6 min read
Beyond monthly electric bill savings, solar panels can affect what your home is worth when you sell it — but the effect depends heavily on whether you own the system outright or are leasing it.
Owned Systems: A Real Value Add
Multiple studies, including research from Zillow, have found owned solar systems add roughly 3–4% to a home's sale price on average, varying by local electricity rates and solar adoption in the area. Buyers increasingly view solar as a desirable, expected feature rather than a novelty.
Leased Systems: A More Complicated Picture
A leased system or PPA doesn't transfer value the same way — the buyer either needs to qualify to take over the lease payments, or you need to pay it off before selling. Some buyers are hesitant to take on an existing lease, which can actually slow down a sale rather than help it.
What to Disclose When Selling
Whether owned or leased, disclose your solar system's status clearly in the listing — ownership type, system age, any remaining warranty, and (if leased) the specific transfer terms. Clear documentation upfront avoids deals falling through during financing or inspection.
Frequently Asked Questions
How much value does solar add to a home?
Research, including Zillow data, suggests owned solar systems add roughly 3–4% to a home's resale value on average, though it varies by location and local electricity rates.
Does a leased solar system hurt resale value?
It can complicate a sale rather than directly hurting value — buyers may be hesitant to take over lease payments, which can slow down or limit the pool of interested buyers.
Do I need to pay off my solar loan before selling my house?
Not necessarily — many solar loans can transfer to the new buyer or be paid off at closing from sale proceeds, similar to how a mortgage is typically handled.