Selling your home in the USA with solar panels for a seamless and successful sale, ensuring you get the most value for your green haven.

 What if you decide to sell your home after installing solar panels on your roof or property? Will solar still be a good thing for your bottom line? And what if you are looking to purchase a home that already has a solar PV system installed?

The good news is that the benefits of solar kick in immediately, and solar panels can lend a significant boost to home resale value. So, if you are considering installing solar but may sell your home shortly, solar is still likely to increase your bottom line. Similarly, if you are a home buyer, buying a house with solar panels allows you to tap into the benefits of solar as soon as you move in.

The USA is basking in the warmth of solar energy. Increasingly, homeowners are harnessing the power of the sun to reduce their reliance on the grid and enjoy substantial savings on their electricity bills. But what happens when it’s time to sell your solar-powered paradise? Fear not, sun-powered house owners.

This comprehensive guide will illuminate the path to selling a house in the USA with solar panels, ensuring a seamless and successful sale that maximizes the value of your green haven.

Homes with solar panels sell 4.1% more:

Homes with solar panels generally sell for about 4.1% more on average than comparable homes without solar power, according to a notable 2019 Zillow study. This premium translates to roughly an additional $9,274 for the median-priced home across the U.S..

Key contextual details include:

• The 4.1% increase is a national average. In some markets, this premium is higher; for example, in the New York metro area, it reached about 5.4%, equating to an extra $23,989 for a typical home there.
• Factors contributing to this increased value include anticipated energy cost savings, the environmental appeal of solar, and the presence of other valuable home features that might correlate with solar installation.
• Later studies (2023-2025) have found even higher premiums, around 6.8% to 6.9% more in recent years, reflecting growing solar adoption and market demand.
• The added home value is generally higher when the solar panels are owned outright rather than leased, and newer solar systems tend to contribute slightly more to home value than older ones.

In short, solid and consistent research shows that homes with solar panels typically sell for about 4-7% more than similar homes without solar, with variation depending on location, system ownership, and market conditions.

This premium underscores the economic benefit of solar panels beyond energy savings alone.

One reason houses with solar-energy systems sell for more than those without them is that they can provide substantial future energy cost savings. For homeowners who know they consume a lot of power, these future savings are worth spending a bit more money up front.

It is also possible that homes with solar-energy systems are more likely to have other features that are hard to measure yet valuable, like heated floors, which could contribute to the premium associated with solar power.

Personal preferences play a role, too: More than 80% of home buyers say energy-efficient features are important, according to the Zillow Group Consumer Housing Trends Report.

What factors cause the 4.1% increase in home value with solar panels to vary across states

The 4.1% average increase in home value for houses with solar panels varies across states due to several key factors:

• Electricity Rates: States with higher electricity costs see greater value increases because solar panels deliver more substantial energy bill savings. For example, California, Massachusetts, and New York have high electricity rates (20–30+ cents/kWh), making solar more financially attractive and increasing home premiums significantly.
• State and Local Incentives: Tax credits, rebates, net metering policies (where utilities buy excess solar power), and property tax exemptions amplify solar’s appeal. States like New York, Colorado, and Massachusetts, with strong incentives, show higher resale premiums.
• Solar Market Penetration: In states with extensive solar adoption (California, Arizona), solar panels are common, so the value boost may plateau because the feature has become expected. In contrast, in states with limited solar usage (e.g., Ohio), solar panels are less common but may add less value because buyers understand them less or see fewer savings.
• Sunlight and Climate: Sunnier states generate more solar energy, but if electricity prices are low, the savings—and thus value—may be moderate (e.g., Arizona has excellent sunlight but lower electricity costs, limiting premiums). Conversely, states with cold winters and high energy costs (Massachusetts) offer strong financial benefits from solar.
• Buyer Demographics and Preferences: Regions with more eco-conscious, tech-savvy, or outdoor-focused buyers (e.g., Colorado) tend to value solar higher, increasing home premiums.
• System Ownership vs. Leasing: Owned solar systems typically add more to home value since leased systems may complicate sales and lower buyer willingness, impacting resale premiums across markets.
• System Size and Age: Larger or newer systems generally add more value because they provide higher energy output and longer-term savings.

This is an increase from the 4.1% figure found by Zillow in a 2019 study.

With the median value of a home in 2025 at around $416,900, solar panels could add nearly $29,000 in value! 

Keep in mind that every home’s situation is different, and several factors will impact how much solar panels increase your home’s value. 

In short, the variation in the 4.1% solar premium across states stems largely from differences in electricity prices, local incentives, solar adoption rates, climate, buyer demographics, and the ownership status of the solar system.

How does a transfer of solar panel ownership work?

When buying or selling a property with solar panels, the easiest route is to have them fully paid off. This is the ideal situation for a smooth transfer of ownership. 

If you are buying or selling a home equipped with a leased solar energy system, this could mean a third party owns the system.

As a seller, you will want to attempt to transfer the lease to the new potential owners. Sharing the benefits you received from the solar energy system may be a great way to help new owners feel confident in taking over the payments.

Inform them of the details, like if the third-party owner covers issues since they are leasing solar panels. This releases the new homeowner from paying out of pocket for repairs, leaving them only to consider regular cleaning maintenance, which may be a selling point for some.

Here’s the general process:

• The homebuyer signs an ownership transfer form
• An attached credit application is sent to the solar company
• Once approved, there’s a new lease transfer, and the new homeowner will take over the payments
• The seller and buyer will sign over ownership; the new homeowner will take over the new ACH payments
• An interconnection approval from the utility must be received

The remaining loan must be settled if you choose the secured loan route. If you choose an unsecured loan, as long as it is not tied to the property, you could sell the home; however, you remain responsible for paying off the loan. 

Questions to ask when buying a home with solar:

Is the solar energy system owned or leased?

Which companies manufactured the panels?

Who installed the system?

What are the warranty terms? Can I get extra warranty coverage? 

How big is the solar energy system?

Is net metering available?

Selling a home with solar panels can be a positive experience, potentially increasing the home’s value and attracting buyers interested in energy efficiency. However, it’s crucial to understand how solar panel ownership (owned vs. leased) impacts the sale process and to effectively market the system’s benefits.

Sellers should focus on these key strategies:

• Highlight Energy Cost Savings: Clearly explain how the solar panels reduce electricity bills, providing potential buyers with estimates of annual savings based on local electricity rates.
• Showcase Environmental Benefits: Emphasize the home’s reduced carbon footprint and appeal to eco-conscious buyers who value sustainability.
• Present Ownership Details: Clarify whether the solar system is owned outright or leased, as owned systems typically add more value and simplify purchase terms.
• Provide Maintenance and Warranty Information: Assure buyers of the system’s condition, remaining warranty coverage, and any recent upgrades or inspections.
• Share Solar Incentives and Credits: Inform buyers about transferable state and local incentives, tax credits, and any net metering benefits they can utilize.
• Use Professional Appraisals: Include a solar-specific appraisal or certification to quantify the system’s contribution to home value.
• Market to Target Buyers: Tailor marketing efforts to eco-friendly communities or buyers interested in smart home features, emphasizing how solar adds to home desirability.
• Include Annual Energy Production Data: Provide historical production data to demonstrate reliability and performance.

By educating buyers on the tangible financial and environmental benefits and simplifying the purchase process, sellers can leverage the solar system to enhance the home’s marketability and achieve the premium sale price that solar homes typically command.

Selling a house with solar panels isn’t difficult

Selling a house with solar panels is easy, especially when the panels were purchased with cash or a loan, as many homeowners value solar’s low electric costs and eco-friendly benefits. 

However, selling a home with solar panels financed with a solar lease or a PPA could make the selling process difficult. The problem here is that these financing options come with long-term contracts.

If you sell your home, the contract must either be bought out by you or transferred to the new owner. This could turn away a potential buyer unwilling to take on a monthly solar payment. 

Get rebates and incentives when you buy a house with solar panels

If you buy a house with solar panels already installed, whether you can still claim rebates and incentives depends largely on the timing and specific nature of the incentives.

• The Federal Solar Investment Tax Credit (ITC), which offers up to a 30% tax credit on solar system costs, is available only if the solar system is newly installed and operational by December 31, 2025. This credit is designed for the system owner who installs the solar panels, so if you are buying a home with an existing solar system, typically, you cannot claim this federal tax credit yourself unless you are the one installing or significantly modifying the system after purchase.
• Many state and local incentives, rebates, or property tax exemptions may still apply to the home with solar panels, but eligibility rules vary by location. Some programs offer transferable benefits or ongoing performance-based incentives that the new homeowner can receive, but some rebates are one-time offers limited to the original installer or first homeowner.
• For low-income or special programs, certain grants and incentives might be available for homeowners who purchase solar-equipped homes, especially if additional energy improvements or battery storage installations are made.
• If the solar system is leased or under a power purchase agreement (PPA), your ability to claim incentives is further restricted, as the lease company usually retains incentives.

So, as a buyer of a home with existing solar panels, you usually cannot claim the federal solar tax credit for that existing system.

However, you may benefit from some state/local incentives or ongoing programs depending on your location and the specifics of the solar installation. Consulting a local solar expert or tax advisor can clarify what incentives you can access after purchase.

If you plan to upgrade or add a new solar system after buying, you may still qualify for many of the available incentives, but the key deadline for the 30% federal tax credit on new installations is December 31, 2025.

Understanding Your Solar Powerhouse

Before potential buyers can appreciate the sunshine you’ve captured, they need to understand the system powering your home. Gather all the vital paperwork, including installation permits, warranties, and maintenance records. These documents not only demonstrate the legitimacy of your system but also provide valuable information about its capacity, efficiency, and any remaining financial agreements (loans or leases).

Now, let’s shine a light on the energy savings your solar panels bring. Compile historical data showcasing your system’s production and the decrease in your electricity bills. Imagine potential buyers basking in the warmth of lower monthly costs, thanks to the sun!

What factors determine how solar panels will affect my home value?

No two homes are the same when it comes to solar installations. That fact rings true for home value as well. Here are some factors that can influence how much value solar panels add to your home.

Location

Where you live in the U.S. can greatly impact the value of your home when you install solar panels. The region, state, and even the city you live in can make all the difference. 

For example, our study found that homes with solar panels in Seattle, Washington, sold for a staggering 9.3% more on average, which is the top spot for the highest increase in home value. 

It’s important to note that adding solar panels doesn’t guarantee an increase in home value. We found that solar homes in Wisconsin sold for less than non-solar homes. 

California, a popular state for home solar, saw a 5.4% rise in value.

System size

A bigger solar system calls for more solar equipment and higher electricity bill savings, meaning a large solar power system could add more value to your home. 

The average solar system size is about 6 kilowatts (kW), but some homes could call for much larger systems. Your home’s electricity usage, the amount of sunlight your home receives, and the wattage of the solar panels you’re using all play a role in how many solar panels you need. 

Solar system condition

Solar panels are built to last 25 years or longer before they start to noticeably degrade. If you are trying to sell your home with a system at the end of its lifespan, your appraisal value may be lower.

In addition to the age of your system, its condition also impacts its value. Regular solar panel maintenance and upkeep can keep your solar system in peak working condition.

  Also, high-quality solar equipment from the top solar panel brands will hold up better over time and ensure access to a reliable solar warranty to cover defects, helping retain a system’s value.

Electricity prices

Another huge pro to having a solar-powered home is that it can reduce your energy bills and save you money. 

According to the 2024 REALTORS & Sustainability report conducted by the National Association of REALTORS Research Group, 44% of homebuyers found utility costs to be an important factor to consider during the buying process, and 57% of real estate agents found promoting energy-efficient features in a home we22nd a little extra for long-term energy savings. 

Most homeowners can expect a solar panel installation to increase their home’s value, leading to a higher home sale price. 

Average US home with a solar panel will sell in 2025

The average U.S. home with solar panels will sell for about 6.9% more in 2025 than homes without solar panels. However, this number can be higher or lower depending on your location, local electricity prices, the condition of your solar system, and whether you own or lease your panels. 

At the end of the day, it’s important to remember that raised property value isn’t the only advantage of going solar. There are plenty of other reasons why going solar is worthwhile. Solar has become more affordable through the federal solar tax credit, net metering, and other local solar incentives. Not to mention – it’s a great investment in a clean energy source that can reduce your carbon footprint!

 Conclusion

Remember, selling your solar-powered house in the US doesn’t have to be a mystery. By understanding your system, its benefits, and the legalities involved, you can navigate the process with confidence and sunshine-filled success.

Also Read: 5 Best Solar Christmas Lights for Eco-Friendly Holiday Decorhttps://solaratics.com/best-solar-christmas-lights/

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