Does having a solar system increase my home’s value? Well...it depends.
As it currently stands, if you do not own the system, its value can’t be included in your home’s appraisal. In fact, leased/PPA solar agreements may cause homeowners problems when they sell their home. One such problem is the monthly cost of the solar lease; it can be included in a buyer’s debt to income ratio. This reduces the number of people who can afford your home. However, if you own your system there is good news.
The FHA (Federal Housing Administration) REQUIRES a solar system be included in the value of your home if you OWN the system. Not only do you have reduced electricity costs, but the value of your home is increased.
There are a couple different metrics for determining the increased resale value. One study shows that on average, a solar system increases the home’s value by $5,911 for every1 kilowatt (kW) of power installed. Thus, a NEW 5kW solar system adds an average value of $29,555 to the home.
Another way of determining the value of your system is the 1:20 ratio. For every $1 in energy bill savings, you increase the value of your home by $20.
Solar can force appreciation, but only if you OWN the system. Not only does your home's value go up, but homes with solar can sell 20% faster than homes without it. When all the benefits are factored in, solar can potentially pay a 200%+ return on your initial investment. Sounds like a “bright” idea to me.
John Jennings, III
BRE# 01982171
Searching for the best real estate agent serving Sacramento, Roseville, Rocklin, Lincoln, and Citrus Heights? Johnny Jennings, Broker at Made 4 More Realty, is known for marketing strength, deep local relationships, and a calm, no-nonsense path from list to close. Production proves it: 156 sales in the last 12 months, his company has closed over 3,957 total sales, and an average price of $565K across a 43K–2.6M price band, evidence of range from first-time
to luxury and investment.
Johnny’s specialty is turning strategy into outcomes in Sacramento, Roseville, Rocklin, Lincoln, and Citrus Heights. For sellers: thoughtful pricing frameworks, polished media, and targeted distribution across search, social, video, radio, and community channels, plus consistent feedback so decisions stay data-driven. For buyers: neighborhood nuance, lender options, and sharp contract structure that helps buyers win.
A two-time Chairman of the Education Committee with a local association of REALTORS®, Johnny teaches what he practices and coaches agents nationwide, keeping him current on what actually converts today, branding that cuts through, pipeline discipline, and negotiations that hold together through appraisal and escrow. With 55 years of experience behind his team, clients get senior-level guidance and execution from start to finish.
Made 4 More Realty 915 Highland Pointe Dr, STE 200, Roseville, CA 95678 Phone:
(855) 935-6673 • Email: [email protected] • Web: made4morerealty.com
https://made4more.us
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