Does Solar Actually Increase Home Value in 2026?

The Short Answer: Yes, But It Depends

In 2026, the real estate market has fully embraced green energy. According to recent data from the National Association of Realtors (NAR), homes with owned solar panel systems sell for an average of 4.1% more than comparable homes without solar. On a $400,000 home, that is an additional $16,400 in value.

Leased vs. Owned Panels

There is a massive caveat to this data: the panels must be owned outright or financed with a specific solar loan. If you lease your solar panels through a Power Purchase Agreement (PPA), they do not increase the value of your home. In fact, leased panels can sometimes complicate a home sale because the new buyer must agree to take over the remaining 15-year terms of the lease or force the seller to buy out the contract at closing.

Regional Differences

Solar premiums are highest in areas with exceptionally high electricity rates and strong state-level solar incentives. Buyers in California, Massachusetts, New York, and Hawaii recognize immediate, tangible monthly savings and are incredibly willing to pay a premium for solar-equipped homes. In states with very cheap grid energy, the premium is closer to 1-2%.

The Bottom Line

If you plan to stay in your home for at least 5 years, buying a solar system outright is an excellent investment. Not only will you eliminate your utility bill, but you will recoup a significant portion of the initial installation cost when you sell the property.