Will a Solar Array Increase my Home’s Value?

Solar Appraisal

As a REALTOR® , I am asked if solar systems increase the value of a home for sale. My short answer is “yes” – solar PV definitely adds a premium to a home’s value; however, quantifying that additional value depends to some extent on the appraisal process.

Ben Hoen, a researcher with the U.S. Department of Energy’s Lawrence Berkeley National Laboratory, and Sandra Adomatis, an appraiser and specialist in appraisal of solar systems, authored “Appraising into the Sun: Six-State Solar Home Paired-Sales Analysis”. This report was based on a 2015 study of samples taken from a database of 4000 home sale transactions in California, Florida, Maryland, North Carolina, Oregon and Pennsylvania, combined with an evaluation of 43 pairs of home sales in local markets within each of these states, thus combining the paired sales method typically used by appraisers, in which the sale of a home with solar PV is compared with the sale of a comparable home without PV, with a statistical analysis of the larger database . The report concluded that the average premium for a home with PV in this study varied from 2.5% to 6.4% of the sale price, depending on the location.