As an appraiser, one of the most common questions I hear is: “Do solar panels increase the value of my home?” The short answer is: not at this time. While solar panels may absolutely help a property sell more quickly, and sometimes for a higher contract price, they do not consistently raise the appraised value—and that’s an important distinction.
When I complete an appraisal, I rely on comparable sales to establish value. If there aren’t enough recent sales of homes with solar panels in the same market, there’s no credible way to prove a measurable difference in value. The reality is that in many neighborhoods, comparable sales with solar are scarce, so I cannot assign added value without documented market support (Appraisal Buzz).
Another factor I must consider is ownership. If the solar system is leased or financed in a way that allows the panels to be repossessed, I cannot treat them as part of the real estate. Only owned systems—or those financed as fixtures to the property—are even eligible to be considered for value (Fannie Mae, Kokosing Solar). This excludes a large portion of installations, since many homeowners opt for lease or PPA agreements.
Even when panels are owned, most appraisers (myself included) remain cautious. To assign value, I would need comprehensive documentation: copies of recent energy bills both before and after installation, proof of the system’s cost, warranties, production reports, and clear evidence of long-term savings. Without that data, there’s no reliable way to calculate the contributory value of the system. In those cases, I typically note the panels in the report but do not apply a dollar adjustment. Some colleagues may make very small “nominal” adjustments, but generally they don’t change the appraised value in any meaningful way (Reddit appraisal thread).
Now, buyers often do see solar as a bonus. Zillow reported that homes with owned solar systems sold for an average of 4.1% more—about $9,000 on a typical sale (Boston Solar). Other research shows they can sell faster and, in some cases, for as much as 17% more (EcoFlow).
But my role as an appraiser is not to predict what a buyer might pay in enthusiasm—it’s to reflect proven market data. Until solar panels show consistent, documented contributions to sale prices across neighborhoods, they won’t be a reliable source of added value in an appraisal.
So here’s the bottom line from an appraiser’s perspective: solar panels may help you sell, but they won’t reliably raise your appraised value—yet. The market is evolving, and I expect this to change as more data builds. For now, think of solar as a great feature that improves marketability, not as a guaranteed value booster on paper.