Do Solar Panels Increase Home Value?

Do Solar Panels Increase Home Value? A 2025 Guide to Solar Energy Benefits

Thinking about going solar and wondering, “Do solar panels increase home value?” Spoiler alert: they do! With over 7% of U.S. homes powered by solar in 2025, adding solar panel and battery installation can make your home more valuable, slash your electric bill by $1,000–$3,500 a year, and keep the lights on during outages. Trusted companies like Tesla, Sunrun, Palmetto Solar, ADT Solar, and Freedom Solar Power make it easier than ever to go solar affordably. This guide dives into how solar panels boost your home’s worth, why solar energy savings are a game-changer, and how to find the best solar panel installers near me. Ready to start? Use EnergySage to get 3–5 free quotes from vetted local pros and save up to 20% ($2,000–$5,000).

Do Solar Panels Increase Home Value? The Numbers Say Yes

Studies consistently show that solar panels increase home value by making your property more attractive to buyers. Here’s the evidence:

  • Zillow (2021): Homes with solar panels sell for 4.1% more on average—about $16,400 for a $400,000 home. Recent 2025 data from Redfin suggests this range is now 4–6.8% ($15,000–$27,200 for a $400,000 home), especially in sunny states like California or Arizona.
  • Berkeley Lab (2022): Solar homes sell for $4/W of installed capacity. For a 7.2 kW system (average U.S. home size), that’s ~$28,800 in added value.
  • Appraiser Insights: A 2025 X post (@RealEstateGuru) notes appraisers often factor in solar energy savings ($1,000–$3,500/year) and battery backup, boosting value in high-energy-cost areas like California ($0.33/kWh).

However, the increase depends on factors like:

  • Ownership vs. Leasing: Owned systems (via cash or loans) add more value than leased panels or PPAs, as buyers inherit no contracts.
  • System Age and Quality: Newer systems (e.g., Qcells, 20–22% efficiency) with strong warranties (25 years) boost value more than older, less efficient setups.
  • Local Market: Solar adds more value in states with high electricity rates (e.g., CA, NY) or strong net metering policies.

Adding solar battery storage (e.g., Tesla Powerwall) can further increase value by offering outage protection, a big draw in storm-prone areas like Texas or Florida.

Other Benefits of Solar Panels

Beyond boosting home value, solar panels offer:

  • Energy Savings: Save $1,000–$3,500/year, with lifetime savings of $31,000–$100,000 over 25 years, per EnergySage.
  • Backup Power: Batteries (5–13.5 kWh) keep essentials running for 12–48 hours during outages.
  • Eco-Friendly Impact: Cut ~8,000 lbs of CO2 yearly, equivalent to planting 120 trees.

Top 5 Solar Companies for Home Value and Savings in 2025

To maximize your home’s value with solar, choose a trusted installer. Below are five of the most popular U.S. solar companies, known for heavy advertising and reliable solar panel and battery installation. Prices are for a 7.2 kW system with battery storage, based on EnergySage, CNET, and Forbes Home data.

1. Palmetto Solar

  • Website: Palmetto
  • Customer Rating: 4.8/5 (ConsumerAffairs, CNET, 4,694,011 reviews)
  • States Available: 25 states (CA, TX, FL, NY, PA, IL, etc.)
  • Best Offer: Palmetto Power PPA—$0 down, $0.11–$0.16/kWh (10–30% below utility rates). Includes Sonnen battery (5–10 kWh, $4,500–$9,000).
  • Price: PPA: $50–$130/month; Purchase: $18,720–$25,200 + $4,500–$9,000 battery. Saves $1,000–$2,500/year.
  • Why They’re Trusted: CNET’s #1 pick for 2025, Palmetto uses Qcells panels (21% efficiency) and offers transparent pricing. Timothy F. (BBB, January 2025) says, “They made solar simple and boosted my home’s appeal.”
  • Drawbacks: Monitoring costs $29/month extra; permitting delays (2–4 weeks).

2. Sunrun

  • Website: Sunrun
  • Customer Rating: 4.5/5 (ConsumerAffairs, This Old House, 1,000+ reviews)
  • States Available: 20+ states (CA, TX, NY, MA, NJ, FL, etc.), Washington, D.C., Puerto Rico
  • Best Offer: BrightSave Monthly PPA—$0 down, $0.12–$0.18/kWh (e.g., $0.17/kWh vs. $0.34/kWh in CA). Includes Tesla Powerwall or LG Chem Brightbox (10–13.5 kWh).
  • Price: PPA: $50–$150/month; Purchase: $19,656–$26,424 + $11,500–$14,500 battery. Saves ~$210/month in CA.
  • Why They’re Trusted: Largest U.S. installer with over 1 million installs. Qcells panels and 24/7 monitoring add value. An X post (@SelfPsyc, July 2025) highlights a $14/month bill in San Diego.
  • Drawbacks: PPA escalator clauses (1–3%) may deter buyers; slower support for purchases.

3. Tesla

  • Website: Tesla
  • Customer Rating: 4.2/5 (EcoWatch, ConsumerAffairs)
  • States Available: All 50 states (via third-party installers)
  • Best Offer: Price Match Guarantee—Matches competitor quotes for panels and Powerwall 3 (13.5 kWh, 90% efficiency). Includes Tesla app.
  • Price: $18,000–$25,200 ($2.50–$3.50/W) + $11,500–$14,500 Powerwall. Saves $1,000–$3,000/year.
  • Why They’re Trusted: Tesla’s sleek panels and Powerwall boost home value with modern design and outage protection. EcoWatch (2025) praises affordability.
  • Drawbacks: Third-party installers can lead to inconsistent service (BBB, 2025); no PPAs.

4. ADT Solar

  • Website: ADT Solar
  • Customer Rating: 4.4/5 (Google Reviews, BBB)
  • States Available: 22 states (CA, TX, FL, AZ, NV, etc.)
  • Best Offer: PowerGuard Purchase Bundle—Price match guarantee, Qcells panels, Tesla Powerwall, and low-APR loans (4–8%).
  • Price: PPA: $0.12–$0.17/kWh ($50–$140/month); Purchase: $19,440–$26,640 + $11,500–$14,500 battery.
  • Why They’re Trusted: ADT’s security brand ensures fast installs (3–4 weeks) and reliable systems, ideal for home resale.
  • Drawbacks: Limited states; some report pushy sales (BBB, 2025).

5. Freedom Solar Power

  • Website: Freedom Solar
  • Customer Rating: 4.6/5 (ConsumerAffairs, NerdWallet)
  • States Available: 6 states (TX, CO, FL, NC, VA, UT)
  • Best Offer: 0% APR Loan—No-interest loans for purchases with Mission Solar panels and Tesla Powerwall. PPA: $0.13–$0.18/kWh.
  • Price: PPA: $60–$150/month; Purchase: $20,160–$27,360 + $11,500–$14,500 battery.
  • Why They’re Trusted: NerdWallet loves their 25-year workmanship warranty and in-house installs, boosting home value.
  • Drawbacks: Only in six states; California licensing issues (2025).

Price and Offer Comparison Table

Company Best Offer PPA Rate Purchase Cost (7.2 kW + Battery) Battery States Customer Rating
Palmetto Solar Palmetto Power PPA $0.11–$0.16/kWh $23,220–$34,200 $4,500–$9,000 25 4.8/5
Sunrun BrightSave Monthly PPA $0.12–$0.18/kWh $31,156–$40,924 $11,500–$14,500 20+ 4.5/5
Tesla Price Match Guarantee N/A $29,500–$39,700 $11,500–$14,500 50 4.2/5
ADT Solar PowerGuard Purchase Bundle $0.12–$0.17/kWh $30,940–$41,140 $11,500–$14,500 22 4.4/5
Freedom Solar 0% APR Loan $0.13–$0.18/kWh $31,660–$41,860 $11,500–$14,500 6 4.6/5

Notes:

  • PPA monthly costs: $50–$150 (7,000–12,000 kWh/year).
  • Purchase costs include 7.2 kW system + battery, before tax credit.
  • Savings: $1,000–$3,500/year, based on state rates ($0.11–$0.33/kWh).
  • Check local availability via EnergySage.

How to Maximize Home Value with Solar Panels

To ensure solar panels increase home value, follow these steps:

  1. Own, Don’t Lease: Purchase panels (cash or loans) to avoid transferring PPA contracts to buyers, which can lower value. Tesla and Freedom Solar’s loans are great options.
  2. Add Battery Storage: Batteries like Tesla Powerwall or Sonnen (5–13.5 kWh) add appeal by offering outage protection, especially in storm-prone areas.
  3. Choose Quality Equipment: Use high-efficiency panels (20–22%, e.g., Qcells, Mission Solar) and batteries with 25-year warranties to impress buyers.
  4. Compare Quotes: Get 3–5 quotes via EnergySage to save 10–20% ($2,000–$5,000). Local installers often beat big brands on price.
  5. Tap Incentives: The Federal Solar Tax Credit saves 30% ($5,616–$12,427). State rebates (e.g., CA’s SGIP, $150/kWh) cut costs—check DSIRE.
  6. Verify NABCEP Certification: Ensure installers are certified for quality work. All listed companies use NABCEP-certified teams.
  7. Avoid Scams: Skip “free solar” offers or aggressive sales (e.g., Momentum Solar’s BBB complaints, 2025). An X post (@SolarWatchTX, June 2025) warns of Texas scams promising “government-paid solar.”

Why Local Installers Can Boost Value Too

Local installers often outshine national brands like Tesla or Sunrun by offering:

  • Lower Costs: 5–10% savings ($1,000–$2,500) due to lower overhead.
  • Faster Installs: 30–60 days vs. 3–6 months for big brands.
  • Local Expertise: Knowledge of permits, weather (e.g., hurricane-resistant panels in Florida), and utility rules.
  • Better Service: Quicker repairs and higher satisfaction, per SolarReviews (2025).

Big brands like Palmetto and Sunrun offer PPAs for no upfront costs, ideal for renters or budget-conscious homeowners. Compare both via EnergySage.

FAQ

Do solar panels increase home value?

Yes, solar panels boost home value by 4–6.8% ($15,000–$27,200 for a $400,000 home), per Redfin (2025). Owned systems and batteries add the most value.

How much do solar panels and batteries cost?

PPA: $50–$150/month ($0.11–$0.18/kWh). Purchase: $23,220–$41,860 (7.2 kW + battery). Palmetto offers the lowest PPA rates.

Which solar company is best for home value?

Palmetto Solar (4.8/5, CNET) leads for affordable