Investing in solar panels for your home can significantly reduce electricity bills and contribute to a greener environment. However, an important question arises for many homeowners considering this investment: Do solar panels really increase your home’s value in 2024? 

Homes with solar energy systems tend to sell at higher prices than those without. According to a 2024 study conducted by SolarReviews, homes with solar panels sold for an average of 6.8% more. This is a notable increase from the 4.1% figure found by Zillow in a 2019 study. With the median value of a home in 2024 at around $417,000, solar panels could potentially add over $28,000 in value! 

However, it’s essential to recognize that every home is unique, and several variables can influence how much solar panels increase your home’s value. 

Location 

The region, state, and city where you live can greatly impact the added value from solar panels. For instance, homes with solar panels in Seattle, Washington, sold for an impressive 9.3% more on average. On the contrary, homes in Wisconsin with solar panels sold for less than those without. 

System Size 

A larger solar system typically means more solar equipment and greater electricity bill savings, which can translate into higher added value for your home. The average system size is around 6 kilowatts (kW), but this can vary based on your home’s energy consumption, the sunlight your home receives, and the wattage of the solar panels used. 

System Condition 

The age and condition of your solar panels play a significant role in determining their impact on your home’s value. Solar panels are designed to last over 25 years, but their condition over time can vary. Regular maintenance and high-quality equipment from top brands can help retain their value. 

Electricity Prices 

Homes with solar panels are particularly appealing to buyers in areas with high electricity rates. A study by the National Association of Realtors found that 44% of homebuyers consider utility costs an important factor, and 57% of real estate agents noted that energy-efficient features add value to homes. 

Owned vs. Leased Systems 

How you finance your solar system can also impact your home’s value. Owned systems tend to add more value than leased ones. Buyers may be hesitant to take on the responsibility of a leased system, which can affect the overall value added by the solar panels. For more information check out our blog post  Navigating Solar System Financing: Pros and Cons. 

Property Taxes and Solar Panels 

While solar panels can raise your home’s value, they may also lead to higher property taxes. Homeowners can expect an annual increase in property taxes ranging from $160 to $630, depending on their home’s location and the added value from the solar installation. 

However, many states offer property tax exemptions as an incentive for going solar. Currently, 29 states offer property tax exemptions , which can help mitigate the potential increase in property taxes due to solar panels. 

Final Thoughts: Will Solar Panels Add Value to Your Home? 

For most homeowners, installing solar panels will likely increase their home’s value, leading to a higher sale price. On average, U.S. homes with solar panels are expected to sell for about 6.8% more in 2024. However, this percentage can vary based on factors like location, local electricity prices, system condition, and ownership status. 

It’s also important to consider the broader benefits of going solar beyond increased property value. Solar energy systems have become more affordable thanks to federal tax credits, net metering, and other local incentives. Additionally, investing in solar panels is a  step towards a sustainable future, reducing your carbon footprint and contributing to environmental conservation. 

Investing in solar panels can enhance your home’s value while promoting sustainable living. For personalized advice and expert installation services, visit SolarTopps.com.