"Solar Adds 4% to Your Home's Value"
Studies show solar adds about 4% to your home's value, so the system basically pays for itself the day it's installed.
What's actually true
The two studies usually cited are from 2015 and 2019, and both cover owned systems. Premiums likely shrink as install prices fall. Leased systems usually add no value and can make a sale harder. Loans generally must be paid off at closing.
Owned solar systems can add to a home’s sale price. But the numbers reps quote come from older studies, apply to owned systems, and won’t fit every house or market. Leased systems are a different story: they usually add no value and can slow or complicate a sale. Treat any home value boost as a possible bonus, not part of your savings.
What the research actually says
Two studies are cited most often:
| Study | Data | Finding | Caveats |
|---|---|---|---|
| Zillow (April 2019) | Sales from March 2018 to February 2019 | Homes with solar sold for about 4.1% more | Correlation; owned systems; before recent price drops |
| LBNL, “Selling Into the Sun” (January 2015) | Sales from 1999 to 2013 | About $4 per watt of solar | Older data; owned systems; install prices were much higher then |
Both are useful but dated. Since then, the cost of installing solar has fallen, which likely lowers what buyers will pay extra for an existing system. Neither study supports a premium for leased panels.
Why salespeople use it
“It pays for itself in home value” makes the price disappear. It also distracts from the monthly math. And it’s hard for a homeowner to disprove on the spot.
A worked example
A $400,000 home with an owned 8 kW system.
- Zillow’s 4.1% would suggest $16,400.
- LBNL’s $4 per watt would suggest $32,000, but that reflects an era when systems cost far more. Today an 8 kW system costs about $24,000 at the 2025 cash median of $3.00 per watt. Buyers are unlikely to pay more for a used system than a new one would cost.
- If the system is leased with $150 a month and 20 years left, the buyer must qualify to take over the lease, or you may need to buy it out. That can reduce what you net from the sale, not add to it.
- If the system was financed with a loan secured by the home or a fixture filing, the balance generally must be paid off or cleared at closing.
How it shows up in a proposal
- A “home value increase” line added to lifetime savings
- A payback chart that reaches breakeven immediately
- A one-page flyer citing “studies” without names or dates
Questions to ask
- “Which study is that, what year, and did it include leased systems?”
- “If I sell in 5 years, what happens to the lease or loan?”
- “Will there be a UCC-1 filing or lien on my home?”
- “Are you counting home value in the savings estimate? Please remove it.”
Other things that affect resale
- Property taxes. Some states exempt solar from property tax assessments; others don’t. See solar, property taxes and insurance.
- Roof age. A buyer may worry about removing panels to replace an old roof. See replace your roof before solar.
- Warranty transfer. Check whether panel and workmanship warranties move to the new owner.
What to do next
Use the selling a home with solar tool to see how a lease, loan or owned system affects a sale. Our guides on whether solar increases home value and selling a house with solar go further. Keep home value out of the payback math in the payback calculator.
Bottom line: Buy solar for the electricity savings. If it also helps your sale price, good. Don’t count on it.
Where to report it
A rep overstating home value is rarely a legal violation by itself. If it was part of a pattern of misrepresentation, report it to your state attorney general or the FTC at reportfraud.ftc.gov.
Related red flags
"Transferring the Lease Is Easy When You Sell"
A lease transfer usually requires the buyer to apply and pass a credit check with the solar company. Some buyers don't want the payment, and the UCC-1 filing can raise questions with mortgage lenders. If the transfer fails, you may have to buy out the lease or pay to move the system.
A Lease or PPA Sold as a "Purchase" or "Program"
In a lease or power purchase agreement (PPA), the company owns the panels. You rent the equipment or buy its power for 20 to 25 years. That affects who gets tax credits, what happens when you sell your house, and who fixes the system.
Inflated 25-Year "Lifetime Savings" Numbers
Lifetime savings headlines usually add up 25 years of future dollars as if they were worth the same as today's, assume you stay the whole time, and sometimes count tax credits or inflated rate increases as savings. The real value is usually much smaller and depends on what else you could do with the money.
"Everything Is Covered for 25 Years"
A solar system has several separate warranties: panel product, panel performance, inverter, and the installer's workmanship. They have different lengths, different backers, and often exclude labor or roof leaks. A warranty from an installer that goes out of business may be worth nothing.