Do Solar Panels Really Increase Your Home’s Value in 2026?

It is widely accepted that solar panels significantly reduce electricity bills, but a pressing question for homeowners remains: do solar panels increase the value of your home when it comes time to sell?

According to Xinjie's 2026 Solar Home Value Study, the answer is a resounding yes. Our data indicates that homes equipped with solar energy systems sold for an average of 6.9% more than comparable non-solar properties. However, the exact home value increase with solar panels isn't a flat rate; it fluctuates based on geography, system ownership, and equipment quality.

Why you can trust Xinjie

As a leading manufacturer of high-efficiency solar modules, Xinjie tracks market trends globally. We analyze real estate data to help our clients understand the long-term ROI of their energy investments.

How much does my home’s value increase when I install solar panels?

The premium for solar homes has jumped significantly. While Zillow reported a 4.1% premium in 2019, our 2026 data shows this has risen to nearly 6.9%. If we look at the median U.S. home price of approximately $416,900, solar panels and house value correlation suggests an equity boost of nearly $29,000.

Of course, real estate is hyper-local. A home in a sunny, high-cost energy market will see a sharper increase than one in a region with cheap utility power.

What factors determine how solar panels will affect my home value?

Simply bolting panels to your roof doesn't guarantee a specific return. Here is what savvy buyers look for.

Location

How much does solar increase home value in your specific zip code? It varies wildly. For instance, our study highlights that Seattle, Washington, saw premiums as high as 9.3%, driven by eco-conscious buyers. Conversely, markets with low electricity rates saw smaller gains. California remains steady with a 5.4% value bump.

System Size and Output

Buyers want a system that covers the bill. A larger, more powerful array adds more value. This is where modern, high-output modules shine. Installing advanced technology, such as the trina solar 720w bifacial series, allows you to generate maximum power with a smaller rooftop footprint, which is highly attractive to potential buyers.

Solar System Condition

Depreciation matters. A 20-year-old system nearing the end of its life won't appraise as high as a new one. The quality of components is crucial here. If you use a reputable ja 700w distributor to source durable, Tier-1 panels, the system retains its efficiency—and value—far longer than budget alternatives.

Electricity Prices

The math is simple: higher local electricity rates equal higher solar value. In states like Massachusetts or New York, where utility power is expensive, the promise of a near-zero electric bill is a massive selling point that buyers are willing to pay a premium for.

Owned vs. Leased Solar Systems

This is the most critical factor. How much do solar panels increase home value if they are leased? Often, zero. In fact, leases can complicate sales. A system you own outright (purchased with cash or a loan) is an asset attached to the house. A leased system is a liability that the new buyer must agree to take over.

Do solar panels raise my property taxes?

Logic suggests that if your home value goes up, your taxes go up. However, 29 states currently offer property tax exemptions for renewable energy systems. This means you get the benefit of the increased resale value without the penalty of a higher annual tax bill.

Bottom line: Will solar panels add value to my home?

For the vast majority of homeowners, yes. The trend is clear: energy independence is a desirable asset. With an average premium of 6.9%, investing in solar is often safer than a kitchen remodel in terms of ROI.

Beyond the financial gain, there is the speed of sale. Homes with owned solar systems often spend less time on the market, as they stand out to cost-conscious buyers.

Solar panels and property value: FAQ

Will adding a solar battery affect my property value?

Yes, increasingly so. As extreme weather events become more common, buyers place a premium on resilience. A battery backup system that keeps the lights on during a blackout is a significant value-add.

Will my property value rise if I finance my system with a solar loan?

Yes. As long as you are the owner (not a leasing company), the system adds to your equity. Typically, the loan is paid off using the proceeds from the home sale, transferring a clean title to the buyer.

Is it hard to sell a house with solar panels?

Not if the system is owned. It usually acts as a differentiator that attracts buyers. Complications only arise with solar leases (PPAs), where the buyer must qualify to assume the lease contract.

Is it a good idea to buy a house with solar panels?

Absolutely, provided you verify the details. Ensure the system is owned, check the warranty status, and inspect the roof condition. Buying a solar home means you get immediate utility savings without the hassle of installation.

Will I still get rebates and incentives when I buy a house with solar panels?

No, the initial federal tax credits go to the original installer. However, you inherit the most important financial benefit: net metering (selling power back to the grid) and SRECs (Solar Renewable Energy Certificates), depending on your state regulations.