Thinking about adding solar panels to your home or business? Along with energy savings, you probably want to know how solar will affect your property’s value if you sell someday. Here is what the research says, what affects the answer, and why the details matter here in Utah.
Do Solar Panels Increase the Value of a House?
In many cases, yes. Owned solar systems have generally been associated with higher home sale prices. The most widely cited research comes from Lawrence Berkeley National Laboratory (Berkeley Lab). Its 2015 study Selling Into the Sun analyzed home sales in eight states and found that buyers paid a premium for homes with host-owned solar. Keep in mind that the study used sales from 2002 to 2013, did not include Utah, and reflects equipment prices and incentives that have since changed.
That said, the size of any premium depends on many factors, and no one can promise a specific percentage or dollar amount for your home. Be wary of anyone who does.
What Affects How Much Value Solar Adds
- Ownership. Systems you own outright are generally the most attractive to buyers. Leased systems or power purchase agreements have to be transferred or bought out, which can complicate a sale.
- System size and age. A newer, well-sized system typically adds more value than an older one.
- Local electricity costs and net billing rules. The more a system saves on Rocky Mountain Power bills, the more appealing it is. Utah’s current export credit rates are listed in Rocky Mountain Power Schedule 137.
- Equipment quality and warranties. Transferable panel, inverter, and workmanship warranties reassure buyers.
- Documentation. Production records, permits, and interconnection paperwork help appraisers and buyers understand the system.
- The local market. Buyer interest in energy-efficient homes varies by neighborhood and over time.
How Solar Saves You Money While You Own the Home
Most of the cost of solar comes upfront. After that, the system offsets electricity you would otherwise buy from the grid. Your savings depend on your usage, system size, roof orientation, shading, and utility rates, which is why we base every proposal on your actual 12-month usage. When you sell, a buyer steps into a home with lower energy bills, which is a big part of why solar can add value.
Tips for Getting Credit for Your Solar When You Sell
- Keep your contract, permits, warranties, and production history in one folder.
- Ask your real estate agent and appraiser to factor the system into the valuation.
- If you have a loan or lease, know the payoff or transfer terms in advance.
- Highlight lower utility bills in your listing.
Other Reasons Solar Is a Good Long-Term Investment
- Predictable energy costs for the power your panels produce.
- Durability. Panels have no moving parts and are built to withstand Utah snow and wind.
- Backup power when paired with a battery.
- Cleaner air for your community. Learn more in How Do Solar Panels Affect the Environment?
What About Tax Credits?
The federal residential clean energy credit (Section 25D) is no longer available for homeowner systems installed after December 31, 2025, according to the IRS. Ask a tax professional about your specific situation.
Planning Solar for Your Property
Before you invest, read our checklist of things to consider before investing in solar panels, explore our solar services, or browse the FAQ.
Frequently Asked Questions
Will solar panels raise my property taxes in Utah?
Tax treatment can change and depends on local assessment, so check with your county assessor or a tax professional rather than relying on general claims online.
Is it better to buy or lease if I might sell?
Owning outright usually makes a sale simpler, because the buyer does not need to take over a lease or agreement. If you finance, know your payoff terms before you list the home.
Do older systems still add value?
A well-maintained system with good production records and transferable warranties can still appeal to buyers. Get the system checked and gather its paperwork before listing.
Talk to a Local Utah Solar Team
Rocky Mountain Renewable Energy has been designing and installing solar systems for Utah homes and businesses since 2010, from our office at 778 Parkway Dr in North Salt Lake. If you would like straight answers for your own property, request a free quote or call us at 801-980-0700.
