Will Solar Panels Boost Your California Home’s Resale Value?

By Tammy Jerome

Tammy Jerome is an award-winning broker and host of “Selling Los Angeles” on the acclaimed American Dream TV show, with over two decades of experience and more than 1,500 successful transactions.

One of the top questions I hear from sellers is, “Will my solar panels help or hurt my home’s value?” The truth is, solar can be a big plus for resale, but only under the right conditions.

Let’s break down whether solar panels are a resale power-up and are worth the hype, or may hinder the desirability.

1. Solar panels can boost value when done right. When solar panels are owned outright and in good shape, they’re usually seen as an asset. Studies show homes with solar can sell for up to 5% more compared to similar homes without panels.

The reason is energy savings. Imagine being able to tell buyers your electric bill averages just $15 a month. That’s a huge selling point, especially in places with hot summers and heavy A/C use.

It’s like selling a car with great gas mileage: the price might be a bit higher, but buyers know they’ll save money long-term.

2. Not all solar is created equal. Solar can help or hurt your home resale, depending on the ownership.

• Owned panels: These almost always help resale. Buyers see the savings and don’t have to worry about added costs.
• Leased panels: These can complicate a deal. Buyers may need to take over the lease, adding another monthly payment that could affect their loan approval. In some cases, sellers may need to pay off the lease before closing to avoid turning buyers away.

If you own your system outright and it’s in good shape, most buyers will see it as a benefit, not a burden.

3. Home appraisal. Appraisers can add value for solar, but only if they have enough local sales data. In areas like California where solar is common, appraisers often have solid comps to support added value. But in areas where solar is rare, it can be harder to prove. That’s why it helps to provide documentation like utility bills, warranty information, and installation costs.

Other factors that matter

• Age & condition: New, efficient panels are attractive. Older systems nearing the end of their lifespan may feel like a looming expense.
• Installation quality: Professional work adds value. A sloppy DIY job can scare buyers off.
• Roof condition: If your roof needs replacing soon, buyers may worry about the cost of removing and reinstalling panels.

If your panels are owned and saving you real money, highlight those savings. Show buyers the utility bills and warranties. If your panels are leased, be clear about the terms or consider paying off the lease before selling to widen your buyer pool.

Handled right, solar can make your home stand out in a positive way. Buyers today care about both energy costs and the environment, so if your system checks the right boxes, it could make your home shine brighter on the market.

If you want an in-depth discussion about your unique situation before selling your home, reach out. Feel free to contact me at (818) 903-5854 or tammyjerome@gmail.com. You can also visit my website, tammyjerome.com to learn more about me and my business.