The Research on Solar and Home Value
Multiple independent studies have documented a consistent relationship between solar panel installations and increased residential property values. A widely cited analysis by Zillow found that homes with solar energy systems sell for approximately 4.1% more than comparable homes without solar. Research published by Lawrence Berkeley National Laboratory similarly found that solar-equipped homes command a measurable premium in resale transactions.
In Texas, this value appreciation is amplified by a state-specific financial benefit that makes solar ownership uniquely advantageous.
Texas Property Tax Exemption for Solar
Under Texas Tax Code Section 11.27, the appraised value added to a residential property by a solar energy system is fully exempt from property taxation. This means that while solar panels increase your home's market value — a benefit realized at resale — that additional value is not included in the calculation of your annual property tax assessment. Texas homeowners therefore receive both the resale benefit and ongoing tax protection for the life of the system.
Impact on Days on Market
Research from Lawrence Berkeley National Laboratory found that solar-equipped homes sell approximately 20% faster than comparable non-solar homes. As energy costs have become a more prominent factor in home purchase decisions, buyers increasingly recognize the long-term financial benefit of acquiring a property with an established solar system.
Financing and Home Sale Considerations
Homeowners who have financed their solar system have two primary options when selling:
- Loan payoff at closing: The solar loan is paid off from sale proceeds. Given the premium solar commands in the market, the increased sale price typically covers the remaining loan balance.
- Loan assumption by buyer: Depending on lender terms, some buyers may assume the existing solar loan in exchange for a negotiated adjustment to the purchase price.
A Solergy consultant can help you understand how to present your solar investment when preparing your home for sale.
The Importance of System Ownership
The home value benefits described above apply specifically to owned solar systems. Leased solar systems — in which the installation company retains ownership of the panels — do not carry the same resale premium and can complicate home sale transactions. All Solergy installations result in full homeowner ownership of the system, whether purchased outright or financed.
Summary
Solar panels represent one of the few home improvements that simultaneously reduce monthly operating costs, increase property value, and qualify for a permanent property tax exemption. For Texas homeowners evaluating long-term financial decisions, the combination of these factors makes solar a compelling investment.