How Much Value Do Solar Panels Add to your Home in 2025?

Updated: June 17, 2025

How much Value Do Solar Panels Add to your Home in 2025? Investing in solar panels for your home can significantly reduce electricity bills and contribute to a greener environment. However, a crucial question arises for many homeowners considering this investment: Do solar panels truly increase your home’s value in 2025? 

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 2025 at around $417,000, solar panels could potentially add over $28,000 in value! Read this full guide will Solar Topps to understand how Solar Energy can help you in 2025. 

The Factor of Solar Panels Increasing Value for Your Home

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 of your Home in Arizona

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. 

At Solar Topps, we are located in Downtown Phoenix. We get tons of sunlight year round, making Solar an excellent option for any homeowner to switch to Solar. While we are in Phoenix, AZ, we do service the entire state of Arizona including – Paradise Valley, Tucson, Buckeye, Phoenix, Scottsdale, Gilbert, Chandler, and every other Arizona city as well!

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. 

Your Solar Energy 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 Energy 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 their property taxes to rise each year. The increase will be between $160 and $630. This depends on where the home is located and the value added by 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. 

How much Value do Solar Panels Add to your Home?

The value that solar panels add to a home can vary depending on several factors, including the location, the size of the system, and the age or efficiency of the panels. Homes in areas with high electricity rates or good solar incentives, like tax credits, usually see bigger value increases. Buyers might pay more for homes with fully-paid solar systems. This is because they enjoy the benefits of ownership right away. It’s important to note that as energy rates keep rising, more people will want energy-efficient homes. This could increase the value of homes with solar technology.

Does Solar Increase your Property Taxes?

These exemptions make sure that the value of a solar energy system does not affect property reassessment. This helps homeowners avoid higher taxes. Homeowners should look into their state’s rules about solar property tax exemptions. These rules and requirements can be very different. Some states may only give exemptions for certain solar installations, like those for homes. Other states may offer wider coverage. Homeowners should consider consulting with local tax authorities or a professional tax advisor to fully understand how these exemptions apply to their property. Homeowners can take these steps to better understand the financial benefits of installing solar. This also helps reduce any tax-related worries.

Solar Panels vs. Electricity: Which Adds More Value to Your Home?

When choosing between solar panels and traditional electricity for a home, there are important factors to think about. Consider how each option adds value to the home. Solar panel installations can increase property value due to their potential for reducing energy costs and their appeal to environmentally conscious buyers. Research shows that homes with solar panels usually sell faster and for higher prices than similar homes without them. The added value can change based on location, local energy rates, and the age or condition of the solar system.

Traditional electricity does not directly add to a property’s resale value. However, it can be helpful in places where solar energy is not common or where energy costs are low. The decision between adopting solar technology or sticking with conventional electricity should be influenced by long-term cost considerations, available tax incentives, and the preferences of potential future buyers. By carefully evaluating these aspects, homeowners can make an informed choice that balances financial and operational benefits with the property’s overall market appeal.

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 2025. However, this percentage can vary based on factors like location, local electricity prices, system condition, and ownership status. Remember that we install Solar Energy Systems for Residential Homes and Commercial Buildings. 

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.