Do Solar Panels Increase Home Value?

Installing solar panels on your home or commercial building will increase its value and decrease the time it takes to sell, according to many studies. One definitive study (from a multi-institutional team led by Berkeley Lab and Sandia National Laboratories)  found an increase in home value from solar panels of over $4 per installed watt. That increase in home value is higher than the typical cost to install solar panels, so the study shows a net financial benefit from installing solar!

Homes may also be easier to sell with solar panels installed, as it is seen as an additional amenity by many homebuyers.


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Solar Panel Value Is Durable

An interesting fact about this study is that the home value increase thanks to solar panels did not depend on the age of the solar installation. Almost every home improvement (roof, foundation, driveway, etc.) decreases in value quickly over the years, but not solar. This value stability is likely due to the fact that the electricity that solar panels produce actually goes up in value every year as the utility company raises rates and that solar panels themselves have a 40+ year life span. 

You also don’t have to worry about having to pay extra property taxes because you installed solar panels. Both Kansas and Missouri have laws requiring tax assessors to ignore the additional property value that solar panels bring.

Increase Your Home Value with Solar Panels

With the value to your building increasing by as much as it costs to install solar, we can say that the solar payback is instant, while the value it adds will continue to yield financial benefits. It’s similar to how money invested in a savings account accrues interest and creates more value while the principal stays safe.

However, even ignoring the increased value that solar can add to your property, your investment in solar will still pay for itself in energy savings alone. The solar payback period is usually between 10 and 12 years.


Learn more about home solar panel costs, benefits, payback period, and tax credits.