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Do Solar Panels Help Increase Home Value?

Photon Brothers Solar Panel House Cloudy Day

Yes! Adding solar panels to your home is a great way to increase home value, especially in sunshine-abundant states like California or Colorado, where home buyers are looking to offset rising electricity costs with renewable energy. 

In this article, we’ll explore the impact of solar panels on home value, including:

The upfront cost for solar installation can seem steep, but there are some highly attractive tax incentives that can offset the upfront cost. Head to our California and Colorado incentives pages to learn more.

Turn to Photon Brothers for 5‑star solar panel installations.

Our veteran solar engineers design custom solar panel and energy storage systems to maximize your return on investment. And our master electricians also have a perfect safety record, so you can trust that you’ll always pass an inspection with flying colors. Click below to get your free solar estimate online today!

Cost Savings and Return on Investment

Depending on the system you choose, the average time it takes for solar panels to pay back your initial investment through the savings they provide is between 6 and 12 years. If you plan to live in your home for at least that long, you’ll likely break even within this time frame, and all savings after this point become pure profit.

If you choose to put your home on the market, these savings will be transferred to the new owners. Whether your system has paid for itself by this point or not, the opportunity to save on energy costs is a pretty strong selling point for potential buyers, giving you a solid opportunity to add any unrecovered costs to the price of your home.

Check out our article, Are Solar Panels a Good Investment?” to learn more about the key factors impacting your solar panel investment.

Appraisal and Home Valuation

Solar panels also add value to your home in a more official capacity. Your property value goes up with solar panel installation when it’s being appraised for tax purposes. This is such a common result that more than half the states in the US have laws that make homeowners exempt from paying additional property tax due to the value increase from solar energy systems. This property value hike is also true for bank appraisals when selling your home or seeking refinance or HELOC approval.

Unrelated but equally important, make sure to add solar panels to your homeowner’s insurance. If you’re not sure how, check out our article, How To Add Solar Panels to Your Home Insurance” in which we explain the benefits and process.

Regional Variations

The location of your home has a significant impact on the appreciation potential for your home when you add solar panels. Areas that offer incentives and have solar-friendly laws provide the greatest value increases. States like California, Florida, Texas, Arizona, and Nevada are examples of places that provide the greatest opportunity for a spike in your home’s value. In general, locations with high sun exposure throughout the year and those that suffer from high energy rates will offer the greatest return on your solar system investment.

Aesthetics and Home Design Integration

The condition of your solar panels can play a role in the value they add to your home, but their integration with your home’s overall design is also a factor to consider. If you have solar panels installed in a way that enhances the exterior of your home and works with the initial aesthetic of your architectural design, the boost in curb appeal can attract more buyers who may be willing to pay more to claim your house for themselves. In an industry that often relies on fresh paint and a quick landscaping overhaul to attract a sale, solar panels are a definite asset.


Energy costs continue to rise, creating uncertainty about how affordable it will be for the average homeowner in the future. Solar panels tackle this issue now, buffering your home from taking the full impact of increased electricity bills. Buyers who are planning for the future and want to prepare for these price hikes will find significant value in having a solar electricity system already installed and ready to offer them the savings they need.

Want to increase your home’s value AND save on energy costs?

Click below to get a free instant estimate using our online estimator. We’ll provide you with expert advice on the best solar panel design to meet your energy needs and save you money in the long run. All installations come backed by our 25-year warranty on production, labor, and parts. We also include snow guards and critter protection to minimize damage to your panels.

Photon brothers John E Johnson

John E. Johnson

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