[Originally published on November 15, 2021, | Updated on January 24, 2024 - 5 min read]
Solar Arrays and Home Value: What You Need to Know
Baumann 1 - Silfab 370: The impact of solar arrays on home resale value is a topic of growing interest, especially as solar adoption increases. While fully-owned solar systems can enhance property value, the exact increase varies based on several factors.
A fully-owned solar system is a significant plus for most home buyers, akin to other high-value home additions. However, leased systems don't add to home value, as they aren't homeowner property.
An Arizona real estate expert, Tara Rutkowski, notes that solar installation can increase home value by $1,000 to $1,500 per kW, depending on system age and savings demonstrated. Nationally, Zillow found that homes with owned solar panels sold for about 4% more on average. This percentage can be higher in solar-friendly regions like Phoenix.
The value added by solar is more about system performance relative to power consumption than size. A smaller, efficient system on a low-consumption home can be as valuable as a larger system on a high-consumption home.
Solar is a unique home improvement that starts paying back immediately. It's an appealing feature for environmentally conscious buyers and those looking to reduce energy costs. However, the decision to go solar should consider factors like how long you plan to stay in the home and the size of your current energy bills.
For a comprehensive guide on buying and selling homes with solar, you can download our free guide, "Buying & Selling A Solar Home." Please feel free to contact Sun Valley Solar Solutions for a free quote if you're considering solar.