US residential solar · 2026 data

Do Solar Panels Help or Hurt When Selling a House?

Q: Does a leased solar system hurt a home sale?

It can add friction. With a lease or PPA, the solar company typically must approve the buyer, who then takes over the contract, or you buy the system out before closing. Under Fannie Mae's appraisal guidance, leased or PPA panels are generally treated as personal property and are not counted in the appraised value. Disclose the contract early and ask your solar company how transfers work.

Q: How do appraisers value solar panels?

Appraisers generally use comparable sales, the cost approach or the income approach (the present value of energy savings). Owned systems can contribute to value; leased or PPA systems generally do not. Berkeley Lab found that replacement cost net of incentives and a well-built income estimate were both reasonable signals of what buyers paid. Results vary by market, so a solar-experienced appraiser helps.

Q: Should I remove solar panels before selling my house?

Usually not. Removal costs money, leaves roof repairs to make, and gives up a feature that studies associate with higher sale prices. The exceptions are a failed or unsafe system, or a contract that cannot be transferred. In those cases, get quotes for repair, buyout or removal and talk to your agent before deciding.

Q: Does the federal solar tax credit transfer to the buyer?

No. The 30% Residential Clean Energy Credit was claimed by the person who paid for the system, and it does not pass to a later buyer. Under the 2025 budget law, the credit also ended for homeowner expenditures made after December 31, 2025, so a buyer who adds a new system now generally cannot claim it either. Ask a tax professional about your situation, including any carryforward from a prior year.

Est. net savings

Zillow analysis of homes sold 2018–2019 · no federal credit

4.1% Zillow avg. premium

$4/W Berkeley Lab premium

3.6 kW Avg. system in LBNL study

Typical result:

About $4 per watt (Berkeley Lab)
About $15,000 for a 3.6 kW system
Owned systems only
Leased systems: no appraised value

✓ EIA rates & NREL sun data ✓ 2026 federal policy applied ✓ Open methodology

Updated September 29, 2026 · 7 min read ·By Green Energy Calculators Editorial Team

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Author Green Energy Calculators Editorial Team

Editorial policy No paid placements

Last updated Sep 29, 2026

Data approach EIA rates · NREL sun hours · 2026 federal policy · methodology

Homeowners with paid-off rooftop solar generally see a sale-price premium, but a leased system can complicate a sale. Zillow’s 2019 analysis found that homes with solar sold for 4.1% more on average than comparable homes without it, which was about $9,274 for the median-valued home at that time. A Lawrence Berkeley National Laboratory (LBNL) study found that buyers paid about $4 per watt, roughly $15,000 for an average 3.6 kW system. The size of the effect in your market depends on who owns the system, how old it is, and what local buyers value.

Two caveats matter. First, both studies are several years old, and the housing market, solar prices and incentives have changed since then. Second, they mostly describe homes with owned systems. Leased systems and power purchase agreements (PPAs) work differently in a sale, as covered below.

This guide summarizes what the research shows, when solar helps a sale, when it can slow one down, and what to do before you list. It is general information, not appraisal, tax or legal advice.

How Much Do Solar Panels Add to a Home’s Sale Price?

Two studies do most of the work in this field.

Study	Method	Main finding
Zillow Research (2019)	Homes sold Mar. 2018 – Feb. 2019 that mentioned solar in the listing, compared with similar homes	4.1% average premium; $9,274 for the median-valued home
Lawrence Berkeley National Laboratory (2015)	22,822 home sales in eight states, 2002–2013, of which 3,951 had solar	About $4 per watt; about $15,000 for a 3.6 kW system

The LBNL study covered California, Connecticut, Florida, Maryland, Massachusetts, New York, North Carolina and Pennsylvania. Its solar systems were homeowner-owned rather than leased. The researchers also found that price per watt was a sound way to value a system, and that a replacement-cost estimate net of incentives, or an income estimate that reflects local tiered electricity rates, tracked what buyers actually paid.

A more recent SolarReviews analysis of Zillow sales data from 2020 to 2023, using about 400 homes, reported larger premiums, around 6.9% nationally. It is a smaller, vendor-run replication, so treat it as suggestive rather than definitive.

Appraisers typically use one of three approaches: comparable sales, the cost approach (replacement cost less depreciation) or the income approach (the present value of expected energy savings). These methods can give different answers, especially for older systems, so a single “solar adds $X” figure should be treated as an estimate.

Use our solar savings calculator to model annual bill savings for your system, which is the input behind the income approach.

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Does Solar Vary by Market? What the Zillow Data Shows

Yes. Zillow’s 2019 analysis reported these premiums by market:

Solar home sale-price premium by market. The New York metro led at 5.4%, about $23,989 for the typical home. Source: Zillow Research, April 2019 (homes sold March 2018 to February 2019).

Chart summary: The premium ranged from 2.7% in the Riverside, California metro to 5.4% in the New York metro, with the U.S. average at 4.1%. In dollar terms, Zillow reported an extra $23,989 for the typical New York home and $9,926 for the typical Riverside home, so the same percentage can mean very different sums depending on local home prices. These are averages from listings that mentioned solar, and Zillow noted that solar homes may also have other valuable features that are hard to measure. Your own result may be higher or lower.

When Does Solar Help a Sale Most?

Ownership is the biggest variable. When you own the system outright, it conveys with the house and the buyer takes on no extra contract. That is the scenario the LBNL and Zillow studies most closely describe.

Solar tends to help most when:

The system is owned and unencumbered. If you have a solar loan, confirm the payoff and any lien on the equipment before closing.
The equipment is documented and working. Panels commonly carry long performance warranties, and inverters often need replacing sooner than panels, so buyers pay attention to inverter age.
Local buyers value lower energy bills. Higher electricity prices generally make solar savings more valuable, which is consistent with the market differences above.
Your records are ready. Buyers, agents and appraisers will ask for warranties, permits and production history.

Solar does not appear to slow sales on average. LBNL found no consistent difference in days on market between homes with and without solar.

When Can Solar Complicate or Slow a Sale?

The most common problem is a lease or PPA. With a lease you pay a monthly fee to use panels a company owns; with a PPA you buy the power they produce. Either way, the contract usually must be handled at sale:

Transfer to the buyer. The solar company typically requires the buyer to pass a credit check and assume the contract. If the buyer is declined or doesn’t want it, the deal can stall.
Buyout before closing. You pay off the remaining contract, at a price set by your agreement, so the system conveys as owned.
Appraisal treatment. Under Fannie Mae’s guidance, panels that are leased or under a PPA are generally treated as personal property and are not counted in the appraised value. A lender’s rules can vary, so ask early.

Other complications include an unpaid solar loan or equipment lien, an aging inverter, or a system that produces well below its rating. An inspection or production check before you list, from a licensed installer, helps you set realistic expectations and avoid a late price cut.

If a buyout is on the table, our solar lease vs. buy calculator can help you compare the numbers.

What About the Federal Solar Tax Credit?

The 30% Residential Clean Energy Credit (Section 25D, claimed on IRS Form 5695) belonged to the person who paid for the system. It does not transfer to a home buyer. Under the 2025 budget law, the credit also does not apply to homeowner expenditures made after December 31, 2025, and the IRS treats an expenditure as made when installation is completed. Homeowners who completed a system in 2025 or earlier may still have an unused credit to carry forward.

For sellers, the practical point is to avoid telling buyers they can claim a credit on the system you installed. We have not found research measuring how the credit’s end affects resale premiums, so any effect on future sales is unproven.

What Should You Do Before Listing a Home With Solar?

Identify your contract type. Check whether the system is owned, financed with a loan, leased or under a PPA, and read the transfer or payoff terms.
Gather documents. Collect the installation contract, panel and inverter warranties, permits and interconnection agreement, any net-metering agreement, and at least a year or two of production data.
Check system health. For older systems, a licensed installer can confirm output and inverter status. A clean report is a useful marketing document.
Resolve liens and contracts. Ask your solar company or lender how to handle a loan payoff, lease transfer or buyout, and how long approval takes.
Set a realistic price. Use comparable sales in your area rather than a national average, and ask for an agent or appraiser who has valued solar homes.
Disclose early. Put the system, its ownership type and its documents in the listing package rather than raising them during negotiations.

Before you list, run the numbers in our solar ROI calculator to document the system’s remaining financial value. For a broader look at costs, see How Much Do Solar Panels Cost?.

Sources

Zillow Research, “Homes With Solar Panels Sell for 4.1% More” (April 2019): https://www.zillow.com/research/solar-panels-house-sell-more-23798/
Hoen et al., “Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes,” Lawrence Berkeley National Laboratory (2015): https://emp.lbl.gov/publications/selling-sun-price-premium-analysis
IRS, “FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21” (2025): https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb
Fannie Mae Selling Guide (treatment of owned versus leased solar in appraisals). Confirm current wording with your lender. To see how your state compares, our guide to Solar Panel Payback Period by State has the full data.

Frequently asked questions

Direct answers for US homeowners — sized for a $150/month electric bill.

Do solar panels increase home value?

Usually yes, for owned systems. Zillow's 2019 analysis found homes with solar sold for 4.1% more on average, about $9,274 for the median home at the time. A Lawrence Berkeley National Laboratory study found buyers paid about $4 per watt, roughly $15,000 for an average 3.6 kW system. Both studies are older, and the premium in your market may be higher or lower.

Does a leased solar system hurt a home sale?

How do appraisers value solar panels?

Should I remove solar panels before selling my house?

Does the federal solar tax credit transfer to the buyer?

$150/month electric bill by state

System size and payback vary by electricity rate and sun hours — see your state.

CA California $150/mo · 33.25¢/kWh TX Texas $150/mo · 16.06¢/kWh FL Florida $150/mo · 15.3¢/kWh AZ Arizona $150/mo · 15.44¢/kWh NC North Carolina $150/mo · 14.94¢/kWh NY New York $150/mo · 29.38¢/kWh MA Massachusetts $150/mo · 30.14¢/kWh CO Colorado $150/mo · 16.72¢/kWh

Compare all 50 states for $150/mo →

Popular state solar guides

Electricity rates and incentives vary — see data for your state.

CA California 33.25¢/kWh · 5.8h sun TX Texas 16.06¢/kWh · 5.6h sun FL Florida 15.3¢/kWh · 5.7h sun AZ Arizona 15.44¢/kWh · 6.5h sun NC North Carolina 14.94¢/kWh · 5.2h sun NY New York 29.38¢/kWh · 4.3h sun MA Massachusetts 30.14¢/kWh · 4.2h sun CO Colorado 16.72¢/kWh · 5.5h sun

View all 50 states →

How these numbers were calculated

Electricity rate: 18.19¢/kWh — US average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production: 4.5 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price: $3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit: $0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering: National blend — solar assumed to offset 75% of the bill (87% in full-retail net-metering states, 55–70% elsewhere).
Model: Version 2026.10 · 3%/yr electricity price escalation · 0.5%/yr panel degradation · simple payback = installed cost ÷ year-1 savings
Policy checked: September 29, 2026 · Full methodology · Report an error

Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.