Do Solar Panels Increase Home Value?

Solar power is one of the most popular energy sources. It is the cleanest and most abundant in almost everywhere on the planet. Solar panels can harness solar power to generate electricity. Solar panels can cover the energy requirements of a home.

Houses that have solar panels will be more valuable than others. Because the countless benefits of solar panels which include the high return on investment, environmental benefits, etc., make it an excellent selling point.

Factors That Influence the Increase in Home Value

There are several factors that can influence the increase in your home value. Here are some of the factors:


The location of the home is an important factor that can increase home value. For example, installations in active solar markets typically bring higher returns than the less developed markets. This is because buyers, realtors, and lenders in the active solar markets will be familiar with the advantages of solar power systems.

Size of the Installation

The number of solar panels your house accommodates can influence the property value. The production capacity of the solar panels must be proportional to the size of your home. The solar energy system must produce enough electricity to meet your daily electricity requirements. In other words, the solar power system should be able to produce the energy needed to power most of the appliances in the home.

Average Energy Usage and Savings

One of the easiest ways to calculate the increase in home value based on energy consumption is to check the cost/financial benefit analysis. For this, you need to find the system’s value which will change according to your area’s electricity costs.

You can ask for the help of residential solar installers to estimate how many panels are needed to fulfill the complete energy requirements of your home. Then look at the electricity bill to find out the cost of the needed system size based on the kilowatt-hours used. Once you have the estimate, compare it with the average resale value in your area.

The energy savings in every month can be considered as an income similar to that of a rental property that represents a real value. As the energy prices go up the value of the property goes up.

Quality Of Solar Panels

The quality of the solar panels themselves is another factor that influences your home’s resale value. Manufacturers of solar panels, inverters, batteries, and other components offer different technologies, efficiencies, lifespans, and warranties. Therefore, there are solar PV panels of different quality. Make sure to do thorough research on the best solar technologies to get good quality products that can make the most out of your long-term investment.

Read More: Solar PV and batteries

Why Is Solar Energy So Valuable?

The financial and environmental benefits of solar energy made it so popular. As the popularity increases, realtors started to understand how to position solar as one of the desirable features that sells the home. Sometimes solar panels can be the only reason that sells your home.

Additionally, the installation of solar panels is relatively an easy task and a one-time investment. The components in a solar power system like inverter, battery storage, etc require very small space and home solar panels can be placed on the rooftop. This means the system takes up very small living space compared to other sustainable living home improvements.

Most of your effort is required only to find the right solar installation company and get the paperwork through for installation and warranty purposes.

Related Article: Why The Best Time to Invest in Solar Is Now Than Later?

Additional Benefits of Solar-Powered Homes

Take a look at some of the benefits of homes powered by solar energy.

Helps Preserve the Environment

Choosing to run your house on renewable energies like solar power reduces your carbon footprint and helps to protect our environment. Because, unlike energy generated by fossil fuels, solar energy has no carbon emission. The carbon emission caused by fossil fuels is one of the main reasons behind global warming. The sustainability of solar energy makes them the perfect energy solution for the future.

Saves You Money on Your Electricity Bill

The most important thing that attracts more people to solar energy is because it saves you money on your electricity bill. By generating the power needed for your home by yourself, you will be using less power from the grid which lets homeowners have massive savings.

A good quality solar panel can generate electricity for up to 25 years. This is enough for you to gain back the initial investment. If you consider the increasing utility costs over the next couple of decades the savings will be much bigger than you think.


The reliability of solar panels is a significant benefit offered to homes. The panels require only sunlight which is normally available everywhere for free. It can power homes situated even in remote locations. It can be more productive in certain seasons. But as long as the sun is shining, the failure rate of solar panels remains very low. This makes it the most reliable energy source.

Related Article: Solar Panels for Home – Things You Should Know


Numerous benefits offered by solar panels make it stand out from other energy sources. The reliable and environment-friendly energy can help homeowners to reduce electricity bought from the grid. The increasing electricity prices also make solar energy more desirable. Ultimately the benefits lead to an increase in the property value. Solar systems should not be a simple thing in the home’s description. The benefits of the system must be conveyed to the potential buyers.

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