When considering selling your house, it’s worth taking stock and making alterations to increase your chances of getting the asking price you’d like.
This can be done in a number of ways – by ensuring proper insulation, creating a beautiful garden, and so on. But what about solar? Do solar panels increase home value? What are the benefits of installing them in your home? We explain it all below.
Solar panels and your home value
Once you’ve decided to sell your property – or even if you’re thinking about doing it sometime in the distant future – you’ll want to maximize its value. Solar panels offer numerous benefits. Not only do they reduce electricity costs, but they also give you peace of mind that you’re doing your part to better the environment. Considering this, it’s no surprise that solar panels can significantly increase your home’s value.
How much exactly? Some research suggests that for every dollar saved on electricity bills (thanks to solar panels), your property’s value goes up by $20. Other studies indicate that solar panels could potentially increase a home’s value by 14%. That’s a big difference!
Some reports also highlight that properties with solar panels tend to sell more quickly than those without. So, it’s safe to say that investing in solar panels is a great way to boost your home’s market appeal.
Why do solar panels increase property value?
It’s no secret that solar panels require a significant upfront investment. So, you might be wondering – why are these big expenses worth it, and how do they increase property value?
Cheaper electricity bills
The biggest reason why solar panels are attractive to potential buyers is the fact that they can significantly reduce your electricity bills. In some cases – when you generate more electricity than your household can use – it’s possible to sell it back to the grid and therefore not only save money but also earn it. This, of course, is a great selling point.
Upgrades that increase your home’s value
If you decide to switch to solar, you’ll likely have the chance to install additional extras, such as smart meters, EV charge points, and other useful add-ons. In recent years, as it has become clear that sustainability is crucial to improving quality of life, people have become more willing to spend on homes that are green or energy-efficient. In the following years, the trend is only expected to grow. So, if you future-proof your home today, you’ll be able to increase its value!
Stand out in a seller’s market
You may know that the housing market is constantly changing. One day it’s in favor of sellers; the next, it’s a buyer’s market. In a scenario where there are many properties on offer, it’s important to highlight what makes your home stand out. Having solar panels might just be the thing that sets your home apart!
Aspects to consider
From everything we’ve discussed, you can see that solar panels often add value to your home. But it’s not always as simple as that. To determine how beneficial they could be to your property, you should think about:
- Location. If your solar panels are shaded by trees, bushes, or other structures, it’s best to fix this. Otherwise, they may not be as efficient, and therefore not as attractive for buyers.
- Age of your solar panels. Most solar panels last roughly 25-30 years. After that, their efficiency gradually decreases. If your panels have reached this age, you’ll likely need to think about repairs (or even a full replacement) soon, which can sometimes be as expensive as investing in a new system.
- Your property’s location. You probably know that the more sunlight your panels get, the more energy they’ll generate. However, the location of your home is also important because every state and city has its own rules regarding solar usage. In some cases, it’s more advantageous to invest in solar panels, while in others, it’s less so.
- The look of your panels. Over the past few years, the design of solar panels has significantly improved and is now much more minimalist. However, there are some people who may still not like the look of them. Be prepared – for some potential buyers, this could be a dealbreaker.
Recap: Do solar panels increase home value
Lower electric bills, a reduced carbon footprint, and off-grid independence – switching to solar offers numerous benefits. Considering this, it’s no surprise solar panels can significantly increase your home’s value.
Ready to make your home more energy-efficient – and more valuable? Installing solar panels is one of the smartest investments you can make as a homeowner. Get in touch with our team at American Home Contractors today. We’ll gladly explain how to choose a system that saves you money and increases your property’s worth.
Fact Checked by Lita Legzdina on 11/06/2025