The Million-Dollar Question: Do Solar Panels Really Increase Your Home's Value?
It's a debate as old as rooftop solar itself: will those panels actually boost your home's resale value, or are they just a hefty expense? For years, misconceptions have swirled, leaving homeowners unsure about one of the most significant investments they can make.
But here at SunSent Solar, we believe in transparent answers. We're not just selling clean energy; we're providing clarity. That's why we're sharing insights from a leading mortgage expert, based on the very guidelines from Fannie Mae, one of America's biggest financial institutions. The verdict is in, and it's overwhelmingly good news for solar homeowners.
The Breakdown: When Solar Adds Value (and When it Doesn't)
According to mortgage expert Brandon Brotsky, whose insights are drawn directly from Fannie Mae's appraisal guidelines, the key factor in determining if solar panels add value to your home is ownership.
1. Owned Outright (Cash or Paid-Off Loan): The BIGGEST Benefit! "If the panels are owned outright, meaning you paid cash or have paid off any third party debt associated with the panels, the appraiser can add the value of the solar panels to your home," Brotsky clarifies.
This is the golden standard. When you fully own your solar system, it becomes a fixture of the home, just like a new roof or a renovated kitchen. Appraisers can then directly factor its value into your property's overall worth.
2. Financed as a Fixture to the Home (e.g., Cash-Out Refinance): Still a Boost! "If your panels are financed as a fixture to the home, the value would also be increased," Brotsky adds. An example is using a cash-out refinance to include the solar panels in your primary mortgage. In these cases, because the panels are part of the real estate collateral, they are still considered a permanent addition that contributes to the appraised value.
3. Third-Party Loans (Specifically for Solar System): Value Added Upon Payoff "A third-party loan that was originated specifically to finance the solar system would disqualify the property from additional appreciation," Brotsky explains. However, he quickly points out, "As I mentioned earlier, once the loan is paid off, the value of your property will increase."
This means if you take out a separate loan just for the solar system, it might not immediately add to the appraised value until that loan is cleared. But once it's paid off, the system's value will be recognized.
4. Leased Solar Panels: Lower Bills, But No Direct Property Value Increase "The last option, leasing the solar panels, will almost definitely lower your monthly power bill," says Brotsky. "However, it will never increase the value of the property."
This is a crucial distinction. While leased panels offer immediate utility bill savings, you don't own the asset. This can sometimes complicate sales as buyers might be hesitant to assume a long-term lease agreement. However, Brotsky notes, "A home with solar is going to lower the overall monthly expenses for the incoming buyer, which will ultimately make the property more attractive to buyers." So, while it doesn't directly increase the dollar value on the appraisal, it undeniably enhances the marketability and attractiveness of your home.
The Numbers Don't Lie: Solar Homes Sell for More (and Faster!)
Beyond Fannie Mae's guidelines, independent research consistently supports the fact that owned solar panels are a smart financial move:
- Zillow's Latest Findings: A 2025 study by SolarReviews using Zillow data found that homes with solar panels now sell for an average of 6.9% more than comparable homes without solar. This translates to an additional almost $29,000 for a median-valued home! (This is a significant jump from Zillow's 2019 finding of 4.1%).
- National Renewable Energy Laboratory (NREL): Research by NREL indicates that homes with solar can see an increase in value by approximately $20 for every $1 reduction in annual utility bills. So, a system that saves you $600 per year could potentially add $12,000 to your home's value.
- Faster Sales: Many studies suggest that homes with solar also tend to sell faster, attracting energy-conscious buyers who recognize the long-term savings and environmental benefits. Some reports suggest homes with solar can sell up to 20% faster than those without.
These numbers demonstrate that solar is not just an operating expense offset; it's a tangible asset that contributes to your property's overall worth.
Why the Midwest is Ripe for Solar Value
Here in the Midwest, the value proposition for solar is even stronger:
- Rising Energy Costs: With utility rates in Missouri and Illinois projected to jump by 70% in the next year, the immediate and long-term savings offered by solar are immense. This translates directly into higher perceived value for potential buyers seeking relief from escalating bills.
- Growing Demand for Efficiency: Buyers are increasingly prioritizing energy-efficient homes. A home with owned solar panels stands out as a forward-thinking, cost-saving investment in our region's dynamic housing market.
- Strong Incentives: The 30% Federal Solar Tax Credit significantly reduces the upfront cost of going solar, making the return on investment even more attractive and directly boosting the net value added to your home.
Make Solar Your Smartest Home Investment with SunSent Solar
The debate is over. When properly owned, solar panels unequivocally increase your home's value, make it more attractive to buyers, and provide significant long-term savings on your electric bills.
At SunSent Solar, we specialize in guiding homeowners across the Midwest through the entire process, ensuring you choose the best ownership option for your financial goals. We offer transparent pricing, expert installation, and durable, high-quality panels that will be a true asset to your property for decades to come.
Ready to boost your home's value and slash those skyrocketing utility bills? Contact SunSent Solar today for a free, no-obligation consultation. Let's make your home a more valuable, energy-independent asset for years to come!








