Solar Home Value Calculator

Estimate how much your solar system adds to your property value — including net equity gain and property tax savings.

Home and system details

Current home value?

Solar system size?

System age?

years

System ownership?

State?

Original install cost?

Remaining loan balance?

Solar value impact on your home

+$35,466 estimated value increase

Estimated home value$435,466

% home value increase+8.9%

Net equity gain+$35,466

Annual tax exemption savings$269.54/yr

10-year tax savings$2,695

Total financial benefit$38,161

Your state has a solar property tax exemption — you won't pay additional property tax on the value solar adds to your home.

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How to Use This Calculator

Enter your home and system details

Start with your current home value — use a recent appraisal or a Zillow/Redfin estimate. Enter the system size in kW (found on your interconnection agreement or installer contract), how old the system is, and whether you own it outright or have a lease/PPA. Select your state to check if a property tax exemption applies.

Ownership matters most

Owned systems (purchased outright or with a solar loan) add the full calculated value. Leased systems are more complicated — the new buyer must qualify to take over the lease, which can slow or prevent a sale. Leased systems may add minimal resale value or even create friction. If you plan to sell, consider buying out your lease first.

Interpret the results

The calculator shows your estimated value increase based on the Lawrence Berkeley National Lab / Zillow study of $5,911 per installed kW. It then subtracts your remaining loan balance to show net equity gain — the money you'd actually pocket above what you still owe. If your state has a solar property tax exemption, you also see annual and 10-year tax savings.

The Formula

Value Increase = $5,911/kW × System kW × Age Factor Age Factor = max(0.50, 1 - System Age × 0.02) for owned systems Net Equity Gain = Value Increase − Remaining Loan Balance % Home Value Increase = Value Increase ÷ Current Home Value × 100 Annual Tax Savings = Value Increase × State Property Tax Rate ÷ 100 Total Benefit = Value Increase + 10-Year Tax Savings − Loan Balance

The $5,911/kW figure comes from the Lawrence Berkeley National Laboratory study "Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes" (2015), updated with Zillow data showing consistent solar premiums across US markets. The age discount of ~2%/yr reflects that buyers value newer systems with more warranty remaining more than older ones.

Example

Jennifer — Selling her California home with a 6kW owned solar system

Jennifer's home is worth $400,000. She installed a 6kW solar system 2 years ago for $18,000 after tax credits. She has no solar loan. She's in California, which has a full property tax exemption on solar.

Current home value$400,000

System size6 kW (owned, 2 years old)

Remaining loan$0

StateCalifornia (tax exemption)

Result

Estimated value increase+$33,700

New estimated home value$433,700

% value increase+8.4%

Net equity gain+$33,700 (no loan)

Annual tax exemption savings~$256/yr

Total 10-year benefit~$36,260

Jennifer's $18,000 solar investment translates to roughly $33,700 in added home value — nearly doubling her money even before counting electricity savings. The California property tax exemption saves her an additional $256/year. When she sells, her solar system should command a premium that far exceeds what she paid.

FAQ

How much does solar add to home value on average? ▼

The Lawrence Berkeley National Laboratory analyzed 22,000+ solar home sales and found a national average premium of $5,911 per installed kW. A 6kW system adds roughly $35,000; a 10kW system adds roughly $59,000. Zillow's analysis found solar homes sell for 4.1% more on average. Premiums are higher in California, New York, New Jersey, and other high-electricity-rate markets where solar savings are larger.

Does owned vs leased solar affect home value differently? ▼

Significantly. Owned systems transfer cleanly with the property and add full market value. Leased systems and PPAs require the buyer to qualify for and assume the lease contract — which creates friction during negotiations. Many buyers walk away from homes with leased panels, or demand a lower price to compensate for the lease obligation. If you have a lease and plan to sell within 5 years, seriously consider a lease buyout ($10,000-20,000 typically) to capture the full value benefit.

Does solar help a home sell faster? ▼

Yes. The Lawrence Berkeley study also found that solar homes sell 20% faster than comparable non-solar homes. Buyers recognize the ongoing electricity cost savings and are willing to move quickly. In competitive markets like California and Texas, solar is increasingly expected as a feature. The faster sale time reduces carrying costs (mortgage, taxes, insurance), adding a secondary financial benefit beyond the sale price premium.

Which states have solar property tax exemptions? ▼

Over 35 states offer full or partial solar property tax exemptions, meaning the added home value from solar is excluded from property tax assessments. States with full exemptions include Arizona, California, Colorado, Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York, Texas, and Virginia. Without an exemption, adding $35,000 in home value in a state with a 2% property tax rate would cost you $700/year in extra taxes — which the exemption fully offsets.

Does system age affect how much solar adds to home value? ▼

Yes, older systems command a lower premium. A new system with 25 years of warranty remaining adds more value than a 10-year-old system with 15 years left. Buyers also prefer modern panels — older thin-film or polycrystalline panels may be less attractive than current monocrystalline technology. As a rough guide, expect the value premium to decline about 2% per year as the system ages, reaching roughly 50% of peak value at 25 years (when warranties typically expire).

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