Home Value
Does Solar Add Value to Your Home?
By David Golovin · September 14, 2026 · 3 min read
Does solar add value to your home? Research says yes, on average. But the actual number depends on your state and electricity rates.
Source: Lawrence Berkeley National Laboratory, Selling into the Sun
~4%
Avg sale premium
National average, LBNL study
~$30k
Premium in California
Highest of all states studied
30%
Federal tax credit
Through 2032, IRA
Where the premium is highest
California leads at an estimated $30,000 premium, followed by New Jersey at roughly $25,000. Both states combine high electricity costs with strong solar incentives. In lower-utility-cost states, the premium shrinks or disappears.
Source: LBNL Selling into the Sun
Owned vs. leased panels
Owned panels add value cleanly. Leased panels transfer the monthly payment obligation to the new buyer, who must qualify with the solar company. Buyers sometimes walk rather than take on the lease. If you are considering solar, buying the system outright keeps the eventual sale straightforward.
What this means when you sell
Solar plus an assumable mortgage is a strong combination. Buyers get a home with lower operating costs and a below-market interest rate. Roots has over 20,000 active assumable listings. If your home has both features, make sure both are visible to buyers.
FAQ
Does solar add value to your home?
Research from Lawrence Berkeley National Laboratory found that solar panels add an estimated 4% to a sale price on average nationally, with larger premiums in California and New Jersey.
How much does solar increase home value?
The average premium is roughly $15,000 nationally, but it varies by state, system size, and local electricity rates. Warm states with high utility costs see the largest premiums.
Do solar panels make a house harder to sell?
Owned panels are generally a selling advantage. Leased panels can complicate a sale because the new buyer must qualify to assume the lease. Buyers can walk if they are unwilling to take on the lease.