How Does Solar Affect Home Value?

Solar can be a very profitable asset for the average homeowner, and the lower power bills aren't the only reason: it's also a great investment into your home's value. On average, solar increases home value by $15,000. 

Making modifications to your home can affect its worth, and solar is a significant home project. 

Some buyers can be apprehensive about purchasing homes with solar attached, especially if you're inheriting a leased system or Power Purchase Agreement in contrast to a purchased, owned system.

This article will discuss how solar affects home value, and, more specifically, how these effects can vary based on the type of solar that has been installed:

Increasing Your Home Value with a Purchased System

Studies have shown that solar can make a home more desirable to buyers, and, when the solar is owned as part of the home, it can even help your property appraise higher.

One study in particular, from Lawrence Berkeley National Laboratory, found that solar increases home value by about $15,000 on average.

This study examined about 22,000 home sales, and also found correlation between system size and value. Basically: the larger the system, the higher the increase in valuation.

Exceptions: Leases & PPAs

While a purchased solar system can increase your home value, it's much less common for leased systems and Power Purchase Agreements (PPAs) to have an effect.

These types of projects allow the homeowner to pay a monthly payment to use the solar system, but ownership of the system stays with the solar provider. 

Because a third party owns the system, leases and PPAs can't usually positively affect home value, at least initially. They can even cause some apprehension for prospective buyers, as monthly lease payments and long PPA contracts can be intimidating.

However, many PPAs/leased systems end up owned by the customer, after the original agreement period has expired. 

Final Thoughts

We hope this article was able to provide some basic information regarding solar and its relation to home value.

To recap: purchasing a solar system has the greatest potential to increase your home value, and leased systems/PPAs are generally less favorable in this regard. 

To receive a quote on a purchased system through Project Solar, use our website calculator, chat with us, or email our Customer Support Team at

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