Solar panels can increase a home’s value while providing clean electricity for years. A well-maintained system can also benefit the current homeowner while adding lasting appeal for whoever owns the home next.
Whether you’re considering using solar energy for your home or already have it, it’s worth learning what makes it so valuable to homebuyers and how solar panels can increase your home’s value.
Why is solar energy so valuable?
Solar energy gives you a cleaner way to generate electricity from a 100% renewable resource. A home solar system can reduce the amount of electricity you draw from the grid, which may lower your electricity costs and help protect the planet.
That combination of potential savings and lasting functionality can benefit you now and make your home appealing later. And sometimes, buyers appreciate energy efficiency but just want a “move-in-ready” house. They may find additional value in a home that already has solar in place.
What makes solar panels worth the investment?
So, what can make solar panels a worthwhile home investment? Their long operational life, increasing adoption and potential appeal to buyers all help tell the story. Here’s what recent research and market data show:
A recent analysis found that homes with solar panels sold for 6.9% more on average than homes without them.1
Research led by the U.S. Department of Energy’s Lawrence Berkeley Lab indicates that home buyers will pay a premium for homes with solar installed.
In 2024 alone, more than 560,000 residential rooftop solar systems were installed across the United States.2
Solar panels had an average operational lifespan of 25-35 years in 2025, making a newer system a long-lasting feature that homeowners can benefit from.3
Installing solar panels can be a relatively easy home-improvement project that causes less disruption to your living space compared to interior upgrades or remodels. After getting a solar assessment and deciding on the type of panels, all that’s left is moving paperwork through the proper channels. Then, it’s time for installation—which usually only takes a day.
Once your solar panels are up and running, you’ll be less reliant on the grid for energy, and your system will start paying you back through energy savings. But even if you’re not sure you’ll stay in your home long enough to recoup the costs that way, solar panels still make a smart investment because of the value they add to your home.
Factors that affect how much value solar panels add
The value solar panels add to a home isn't one-size-fits-all. Buyers, appraisers and local market conditions may weight several factors, including:
- What part of the country you live in
- The price of electricity in your area
- The size, condition and starting value of your home
- The age of the solar panels
- How much energy the system saves
What are the other perks of having a solar-powered home?
Aside from the potential to increase a home’s value, solar panels offer a number of other benefits to homeowners:
Choosing renewable energy helps protect the planet. A home that uses the power of the sun to produce electricity reduces the need for burning fossil fuels, which emit greenhouse gases like carbon dioxide (CO2).
Solar panels can help lower your electricity bill. After saving enough on your energy bill to erase the cost of your initial investment—which, by the way, can further be greatly reduced by federal, state and local tax credits—having solar is like getting free electricity for the rest of the panels’ lifespan.
Some companies will even pay you for your electricity. For example, Green Mountain customers enrolled in the Renewable Rewards® program earn a bill credit for excess electricity their solar panels return to the grid.
It's easier than ever to increase the value of your home and help protect the environment by installing a solar panel system on your roof.
