Do Solar Panels Increase Home Value?

Solar technology harnesses energy from sunbeams through its silicone-based crystalline wafers or panels. These silicon panels produce electrostatic charge which gets stored in batteries and then inverted to AC voltage to power home-based and industrial appliances i.e., bulbs, juicers, air conditioners, and heating units. Also, solar panels are reliable and more efficient than fuel-backed power sources for backup energy. In addition, solar power is available in unlimited capacity with the average lifetime of a residential-purpose system up to 25 years.

Solar systems work great for standalone power generation as well as for backup energy production. For homeowners, solar electricity is a clean solution with long-term returns on investments. Usually, the solar panels are wired to electricity mains at home as a backup energy source alongside an on-grid power system. On average, hybrid-mode solar systems save up to 60% on electricity bills for common households. The upfront system procurement costs are covered within 5 to 8 years with additional 10 – 15 years in pure profits.

Solar Systems for Homes

Types of Solar Systems for Homes

For homeowners, solar systems can be installed on rooftops or on the ground. The ground-mounted solar systems are relatively easier to install, and their power generation capacity can be extended quite effortlessly compared with rooftop systems. However, they cover unnecessary space which may possibly be utilized elsewhere. Ground-mounted solar systems are more lucrative for solar farming and spacious farmhouses where space isn’t an issue. For urban flats and city homes, rooftops are the best choice to go for. Rooftop-mounted solar systems for homes may include additional costs in repairs and replacements than ground-based systems.

How Solar Panels Increase Home Value?

Solar panels have been an important influence on the American real estate price charts. An average American house with a 6KW solar system is likely to be sold for an additional $35,000. The value increases with larger properties that have heftier solar panels installed on them. Also, solar panels were found to increase the total worth of an average American house by 4 – 5% of its original price, according to a government study in 2020.

There are multiple other factors that also determine how much your house would cost if a solar system were installed on it. These circumstances include:

  • The total output of the system and the size of the property. A small-sized flat would need between 2 – 3 KW solar system compared to a mansion-scale villa that would require anywhere between 6 – 12 KW solar system to meet ends. The home value and profit are thus directly proportional to the total kilowatts the solar system produces and the size of the property.
  • Most state governments in the USA give tax breaks and free credits to efficient solar consumers. The state-sponsored incentives make a residential solar installation more worth it. But, in a few other states, tax breaks and subsidies do not bear many benefits. If your home is located in a subsidized locality, your house would be worth more than in a non-subsidized one. Do check first-hand whether your state provides tax-free grants on the property for installing solar panels.
  • Solar prices also contribute a greater deal in determining the worth of a house with a solar system. If solar panels are cheaper and more accessible in your locality, the returns would be greater when added to the house’s net worth.
  • Geography sucks! But for the deprived and destitute. If your home is located in a well-established sector, an integrated solar power unit would be far more valuable given the social sensibility and chic perceptions regarding renewables. A buyer with ample money would happily spill a few more guards to buy a carbon-neutral, tax-free house than a traditional one.


Homebuyers are more open to housing deals that include renewable backups. A house with a backup solar system will cut down about 50 – 70% in electricity bills alongside complete tax exemptions for a lifetime in the bulk of the states. For example, Arizona, Texas, Connecticut, and many other states in the USA exempt property taxes for homes with solar systems installed on them. The remaining states also tax-free homes with solar panels from 5 to 25 years. In addition, all American houses are qualified for the federal solar tax credit with low-interest and sometimes interest-free loans to encourage domestic users to install off-grid or integrated hybrid solar systems for their homes.