Do Solar Panels Increase Home Value in the USA? What Homeowners Should Know in 2026

If you’re weighing whether to install solar panels, the return on investment question usually goes beyond monthly electricity savings. A lot of homeowners want to know one thing: will solar panels actually raise what my house sells for? In 2026, the data finally gives a clear, well researched answer.

Short Answer: Yes, and More Than Most People Realize

Multiple independent studies now confirm that owned solar panels increase home value, and the premium is larger than older estimates suggested. For years, the go to figure was a 2019 Zillow study showing a 4.1% bump in resale price. Newer 2025 and 2026 research puts the number meaningfully higher, often in the 5% to 10% range, with some studies reporting premiums as high as 6.8% to 6.9% nationally.

On a median priced U.S. home (around $403,000 to $417,000 in 2026), that translates to roughly $16,000 to $39,000 or more in added value, depending on your location and system size.

What the Latest Studies Actually Found

A few major research efforts are shaping how appraisers and real estate agents think about solar in 2026.

A 2025 study of 5,000 California home sales (2020 to 2023) found that homes with owned solar systems sold for 5% to 10% more than comparable homes without solar. On typical California home values, that worked out to roughly $39,500 to $79,000 in added resale value, more than double what the original 2019 Zillow figure suggested.

Lawrence Berkeley National Laboratory (LBNL) analyzed more than 22,000 home sales across eight states and found buyers paid a premium of approximately $4 per watt of installed solar capacity. For a typical 8 kW system, that works out to roughly $32,000 in added value.

SolarReviews (2024) found an average premium of 6.8% nationally, up from the earlier 4.1% Zillow benchmark.

Taken together, these studies represent tens of thousands of real home sales, and they consistently point in the same direction: solar adds real, measurable resale value, and that value has grown as solar has become more mainstream.

Owned Solar vs. Leased Solar: A Critical Difference

Here’s the detail that trips up a lot of homeowners: not all solar setups add value equally.

• Owned systems (paid for in cash or through a loan that’s paid off or transfers cleanly) consistently show a strong resale premium. Buyers see a free electricity source with no ongoing payment attached.
• Leased systems or Power Purchase Agreements (PPAs) generally show little to no measurable impact on resale price. Buyers are often hesitant to take over someone else’s lease obligations, and in some cases a lease can actually complicate or slow down a sale.

If you’re financing solar and plan to sell within a few years, it’s worth asking your provider about buyout options before listing your home, since paying off the system ahead of a sale tends to restore most of the resale premium.

Does System Age Matter?

Less than you’d think. Research shows that installations over five years old still earn a solid 5% to 6% price boost, meaning the value doesn’t disappear as panels get older. Panel technology is durable (most come with 25 year warranties), so a properly maintained system continues to appeal to buyers well into its lifespan.

Does Location Change the Numbers?

Significantly. Home value premiums vary by market, driven by local electricity prices, solar adoption rates, and buyer awareness. For example, some studies have found premiums as high as 5.4% in New York City, while lower cost electricity markets like Riverside, California have shown smaller premiums closer to 2.7%. Areas with high electricity rates and strong solar familiarity among buyers and appraisers tend to see the biggest returns.

How Solar Compares to Other Home Upgrades

Unlike many popular renovations (kitchens, bathrooms, decks) that mostly improve comfort or aesthetics, solar offers something rarer: a quantifiable, ongoing financial benefit that a buyer can actually calculate. A well documented system, especially paired with lower utility bills, gives buyers a clear number to point to, which makes it easier for appraisers to justify a higher valuation.

For context, a typical 12 kW solar system costs around $30,500 before incentives. If that same system boosts home value by even 5%, it could cover a large share of the installation cost through equity alone, on top of years of electricity savings.

Tips to Maximize Your Home’s Solar Value

1. Buy, don’t lease, if resale value matters to you. Owned systems consistently outperform leased ones on the market.
2. Keep documentation. Save permits, warranties, and production records. Buyers and appraisers want proof the system is legitimate and performing well.
3. Request a solar trained appraiser. Many appraisers now use the Appraisal Institute’s Green and Energy Efficient Addendum to properly value solar, but not every appraiser is trained to use it. Ask your agent to request one who is.
4. Maintain the system. A clean, well functioning setup reads as “move in ready” to buyers, while a neglected one can raise questions.
5. Time major upgrades carefully. If you’re planning to sell soon, factor resale premiums into whether it’s worth financing a bigger system now versus a smaller one.

Key Takeaways

• Solar panels increase home value in the USA, with 2026 studies showing premiums between 5% and 10%, well above the older 4.1% Zillow benchmark.
• On a median priced home, that can mean $16,000 to $39,000 or more in added value.
• Owned systems add meaningful resale value; leased systems or PPAs typically do not.
• Systems over five years old still hold a solid 5% to 6% value premium.
• Location, local electricity prices, and appraiser familiarity with solar all affect your actual premium.
• Keeping documentation and requesting a solar trained appraiser can help you capture the full value when you sell.

Figures above are based on multiple independent 2024 to 2026 studies and national averages. Actual home value impact depends on your specific market, system size, ownership structure, and local buyer demand. Consult a local real estate professional for guidance specific to your area.