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How Solar Panels Impacts the Resale Value of a Home

By: Eric Huesca, SEO Content Writer
June 13, 2023

In the modern era of sustainability and energy conservation, homeowners and buyers are increasingly drawn to energy-efficient homes. Solar panels, in particular, have become a hot topic in the real estate market due to their myriad of benefits, from reduced energy costs to a lower carbon footprint. Yet, one question often arises: how do solar panels impact the resale value of a home? This article dives into the direct and indirect ways solar installations can influence the financial and appealing aspects of your property in the housing market.

Solar Panels on Roof of Home

Night view of a beautiful house with solar panels.

The Rising Popularity of Solar Energy

Solar energy has become increasingly popular over the past decade, transforming from a niche interest into a mainstream pursuit. As more people have become aware of the need to reduce their carbon footprint and lower their energy costs, they have turned to solar panels as an effective solution. 

The Direct Impact of Solar Panels on Home Resale Value

A well-maintained solar panel system can significantly enhance the resale value of your home. A study by Lawrence Berkeley National Lab, for instance, found that on average, homebuyers were willing to pay about $4 more per watt of solar capacity, which could translate to an additional $15,000 for a home with a standard-sized solar energy system. 

The exact increase in home value can depend on several factors, including the size and age of the solar panel system, the location of the home, and local electricity rates. However, it’s clear that a solar panel system can directly contribute to a higher resale value for your home. 

The Appeal to Potential Buyers

Beyond the direct financial benefits, solar panels can also make a home more attractive to potential buyers. In a world where environmental consciousness is on the rise, many buyers are looking for homes that align with their values. A home with solar panels can appeal to these environmentally conscious buyers, potentially resulting in a faster sale. 

Furthermore, a home equipped with a solar panel system provides immediate savings on energy costs. For buyers who are mindful of their ongoing living expenses, this can be a significant advantage. 

Local and State Incentives

The value that solar panels add to a home can also be influenced by local and state incentives for solar energy. Many areas offer tax credits, rebates, or other incentives for homes with solar panels. These incentives can reduce the cost of a solar panel system, making it more affordable for homeowners and increasing the return on investment when they sell the home. 

The Condition and Maintenance of the Solar Panels

Like any feature of a home, the condition and maintenance of a solar panel system can impact its value. A well-maintained solar panel system can increase a home’s value, while a system that has been neglected or is in poor condition may not offer the same benefits. Regular maintenance and care of the system are essential for preserving its value. 


Solar panels can significantly increase the resale value of a home, providing both direct and indirect benefits. By reducing energy costs, they make a home more affordable to live in, which can be appealing to potential buyers. They also align with the increasing desire for sustainable living, making homes with solar panels more attractive in the housing market. 

Furthermore, local and state incentives can further enhance the financial benefits of solar panels. However, it’s important to remember that the condition and maintenance of the solar panels can also play a role in their impact on a home’s value. 

With the rising popularity of residential solar energy, the value that solar panels add to a home is likely to continue to increase. As more buyers seek out sustainable, energy-efficient homes, properties with solar panels will be in high demand, making them a worthwhile investment for any homeowner. 

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Solgen Power is a solar energy contractor that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.

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Copyright © 2022 Solgen Power, All Rights Reserved