Boost Your Home Value With Solar Panels
Solar panels now boost home values by up to $79,000, new study reveals
Think solar panels only add a modest bump to your home’s value? Think again. New research analyzing 5,000 California home sales shows that solar installations are driving property value increases of 5% to 10%—more than double previous estimates. For the average $790,000 California home, that’s an eye-popping $39,500 to $79,000 boost in resale value.
This isn’t just about monthly electric bill savings anymore. The data shows solar panels have become one of the most valuable home improvements you can make, delivering returns that exceed traditional renovations while providing decades of energy independence.
But homeowners have just a few months to capture both this home value increase and the 30% federal tax credit, which ends after December 31, 2025. With the average solar panel system costing about $29,000 before incentives, that means missing out on about $9,000 in savings. And after the tax credit disappears, existing solar installations could become even more valuable to homebuyers who want to avoid paying full price for new systems.
Solar’s home value impact is bigger than realized
For years, the solar industry relied on a 2019 Zillow study showing solar panels added about 4.1% to home values. But recent research conducted by SolarInsure provides a newer picture. It analyzed 5,000 California home sales between 2020 and 2023, comparing 2,350 homes with owned solar systems against 860 comparable homes without solar and 1,790 homes with third-party-owned solar.
The findings are striking: Homes with owned solar panels sold for 5% to 10% more than similar homes without solar, a significant jump from Zillow’s 2019 study.
System age played a smaller role than expected. Solar installations over five years old still earned a 5% to 6% premium, while newer systems saw 7% to 9% increases. This suggests buyers value the long-term savings potential more than the newest technology.
To ensure accurate comparisons, researchers matched each solar home with three non-solar properties of similar size, age, and amenities in the same area. They also used the Case-Shiller Home Price Index to account for market fluctuations over the study period.
According to EnergySage data, the average 12-kilowatt system costs about $29,000 before incentives. With the 30% federal tax credit, that drops to roughly $20,000. So, if your home’s value increases by just 5% due to solar, you could recover your entire investment through increased property value alone—before counting decades of electricity savings.
After the tax credit ends, homeowners will pay more to install solar themselves, making existing installations even more valuable to homebuyers who want to avoid that premium.
[Source: Energysage, Aug 4, 2025, written by Alix Langone and Emily Walker]