New analysis of Zillow data shows how solar panels impact home values: 'Catch the eye of buyers and ... sell more quickly'

A new SolarReviews study using Zillow data on recently sold homes in 2025 found that homes with solar panels sell for 6.9% more than non-solar homes. This profit translates to about $25,000 more in average house sale prices.

Six years prior, Zillow conducted a similar study comparing the prices of solar homes to non-solar homes. The online marketplace found that solar homes outpriced non-solar homes at a rate of 4.1%, or about an average of $10,000 more.

Solar is a home upgrade that will generally increase your home's value, especially as property values increase over time.

It's also one of the best ways to become energy-independent and save money on home energy costs. EnergySage estimates that homeowners will save about $50,000 on energy costs over the lifespan of a solar system, which is about 25 years.

The math, maths.

The average cost of solar is between $17,900 and $23,600, with the national average at $20,948, according to a previous report by The Cool Down.

With federal solar tax incentives from the Inflation Reduction Act — which may not be available forever due to Congress' recent pushes to repeal it — homeowners can still save up to 30% off the cost of a qualified home solar system if installed before the end of the year.

Even at the higher end of the range for solar installations, homeowners will still experience an automatic profit or return on investment in the increased home value. Remember, Zillow data calculates an average higher home value price of about $25,000 for solar homes compared to non-solar homes.

Factoring in energy savings the solar system provides — which will reduce the cost of energy to as low as free — homeowners will likely net positive on owning and installing home solar, while helping to reduce household carbon output.

Now may be a prime time to install solar before the federal tax incentives disappear.

What's the biggest factor stopping you from investing in solar panels? The cost 💰 The technology ☀️ I'm a renter 🏢 I'm already invested 😎 Click your choice to see results and speak your mind.

Using EnergySage's free mapping tool, homeowners can find additional relevant state and local solar incentives to save even more on solar installation. Homeowners who have used EnergySage's tools and solar marketplace to compare solar quotes have saved up to $10,000 on solar projects.

"Properties that come equipped with solar panels often catch the eye of buyers and tend to sell more quickly," said Brett Johnson, owner of real estate consulting company New Era Home Buyers, per SolarReviews.

Don Wede of the investment company Heartland Buys Houses said: "Houses with solar panels are valued favorably in the real estate market," per SolarReviews.

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