Solar
How Solar Panels Affect Your Home's Resale Value
Virginia homeowners installing solar today are making a financial decision that outlasts the monthly bill. Here is what the research and appraisers say about what happens at resale.
Earth Right | Solar | 7 min read
6.9%
Average home value premium for solar-equipped homes
$15,000
Estimated added value for the average Virginia home
25 yrs
25 yrs Net Metering protection for many Virginia homeowners
The Problem
Most Homeowners Think About Solar as a Utility Decision:
A Real Estate Decision Too
A residential solar installation runs around $19,000. For homeowners planning to stay put for decades, the math is straightforward. For everyone else, questions about resale value can stall the decision entirely.
Will buyers actually pay more for a solar home? Will an appraiser give the system any credit? Does it matter whether the panels are owned or leased? What if the buyer simply does not want solar?
These are reasonable questions. The good news is that there is now a substantial body of research on all of them, and the findings are consistently favorable for homeowners who own their systems outright.
The Research
What National Studies Show About Solar and Home Value
Several large studies have found that homes with owned solar systems sell for more than comparable homes without solar. The premium is not marginal.
Research from Lawrence Berkeley National Laboratory found that solar systems add value at an average rate of $3.78 to $4.00 per installed watt. For a 4-kilowatt system, that translates to more than $15,000 in added resale value, often covering a meaningful portion of the installation cost before a single utility bill arrives.
$3.78–$4.00
Nationally, homes with solar have sold for approximately 6.8% to 6.9% more on average than comparable non-solar homes. In higher-cost markets, that gap can translate to $25,000 or more. Virginia-specific estimates run slightly more conservative at around 4% to 4.1%, but $15,000 in additional value for an average-priced Virginia home is still a meaningful return.
Virginia Context
How Virginia's Policies and Programs Affect Solar's Value at Resale
Home value is shaped by local context. Virginia has several policies that make an owned solar system more attractive to future buyers, and more defensible in an appraisal.
Net Metering. Homeowners served by Dominion Energy or Appalachian Power can participate in Virginia’s net metering program. Excess electricity sent back to the grid earns credits at the retail rate. Once an interconnection agreement is in place, that arrangement is generally grandfathered for 25 years. For a buyer, that is a documented financial benefit tied directly to the property.
Solar Renewable Energy Credits. Virginia homeowners can generate SRECs. One credit is earned for every 1,000 kilowatt-hours produced, and those credits can be sold in qualifying markets. It is an additional income stream that transfers with the system.
Property Tax Exemption: Virginia law allows local jurisdictions to exempt qualifying solar equipment from real estate tax assessments. In many cases, the added home value from solar does not result in a higher annual property tax bill. Homeowners should verify how their specific locality applies the exemption before installation.
Key Factors
What Determines How Much Value a Solar System Actually Adds
Not every solar installation adds the same amount of value at resale. Several variables have a significant impact on the outcome.
Owned vs. leased. Ownership matters more than any other single factor. Homes with owned systems transfer the equipment to the buyer cleanly. Leased systems require the buyer to qualify for and assume an existing agreement, a step that can complicate financing and reduce buyer interest. For homeowners prioritizing resale value, ownership is the stronger path.
Documentation. Appraisers cannot assign value to information they do not have. Fannie Mae guidelines provide methods for valuing solar, but the process requires supporting materials: system specifications, ownership records, warranty documents, utility bill history, and production reports. The more complete the file, the easier it is for an appraiser to support a value adjustment.
Roof condition. A solar system and the roof beneath it are evaluated together. If the roof is approaching end of life, buyers may focus on replacement costs rather than energy savings. Many Virginia homeowners assess roofing needs before scheduling a solar installation for exactly this reason.
4%–4.1%
Where to Start
A Practical Sequence for Virginia Homeowners
Review Your Current Energy Costs and Usage
Pull 12 months of utility bills to understand your baseline consumption. A solar system sized to your actual usage performs better and appraises more cleanly than one that is over or under built.
Confirm Your Roof is in Good Condition
A solar installation on a roof that needs replacement within five years creates complications at resale. Address roofing needs first, or evaluate them together as part of a coordinated project.
Choose Ownership over a Lease if Resale Matters
Cash purchase and financed ownership both provide stronger resale advantages than lease agreements. If a future sale is part of your thinking, discuss ownership structures with your installer from the start.
Keep Complete Records from Day One
Save permits, interconnection agreements, warranties, production reports, and utility bill history. When the time comes to sell or refinance, these documents support the appraisal and make the transaction cleaner for everyone involved.
Common Questions
Frequently Asked Questions
How much value do solar panels add to a home in Virginia?
Current estimates put the increase at approximately 4% to 4.1% for the average Virginia home, which works out to roughly $15,000 based on current median prices. National studies have reported even higher premiums, up to 6.9%, depending on the market and system characteristics.
Does it matter whether the solar system is owned or leased?
It matters significantly. Owned systems transfer with the property and are straightforward for buyers and lenders to evaluate. Leased systems require the buyer to assume an existing agreement, which can create financing complications and reduce the number of interested buyers. Ownership almost always produces a stronger resale outcome.
Will solar panels raise my property taxes in Virginia?
In many Virginia localities, qualifying solar equipment is exempt from local real estate tax assessments. The added home value from the system may not result in a higher annual property tax bill, but the exemption is applied at the local level. Verify how your jurisdiction handles it before installation.
How do appraisers calculate the value of a solar system?
Appraisers typically use an income-based approach that projects the value of future energy savings, or a sales comparison approach that looks at similar homes with solar. Fannie Mae guidelines support both methods, but the process depends on complete documentation from the homeowner. Systems without proper records are harder to appraise accurately.
Do homes with solar sell faster?
Does net metering in Virginia transfer to a new owner?
Find Out What Solar Could Mean for Your Home's Value
Earth Right provides solar installations, home energy assessments, attic solutions, battery backup, and roofing services across Virginia. A conversation with our team starts with your home.
Call us at 434.661.5656 or email info@erepower.com