09/02/2025
Although not specific to CT, this recent article cited by EnergySage highlights how solar systems will continue to bring added value to a home. Investors may want to consider deploying a system sooner than later. Install by the end of the year and receive the 30% Federal Tax Credit.
Excepts from most recent EnergySage article.
Solar's home value impact is bigger than realized
For years, the solar industry relied on a 2019 Zillow study showing solar panels added about 4.1% to home values.
But recent research conducted by SolarInsure provides a newer picture.
It analyzed 5,000 California home sales between 2020 and 2023,
comparing 2,350 homes with owned solar systems against 860 comparable homes without solar and 1790 homes with a third-party-solar owned system.
The findings are striking: Homes with owned solar panels sold for 5% to 10% more than similar homes without solar.
A big jump from 2019!.
System age played a smaller role than expected. Solar installations over five years old still earned a 5%-6% premium
while newer systems saw 7% to 9% increases. This
suggests buyers value the long-term savings potential more than the newest technology.
To ensure accurate comparisons, researchers matched each solar home with three non solar properties of similar size, age and amenities in the same area.
They also used the Case-Shiller Home Price Index to account for market fluctuations over the study period.
According to EnergySage data, the average 12-kilowatt system costs about $29,000 before incentives. With a 30% federal tax credit, that drops to roughly $20,000.
So if...........
your home's value increases by just 5% due to solar, you could recover your entire investment through increased property value alone before counting decades of electricity savings.
After the tax credit ends, homeowners will pay more to install solar themselves, making existing installations even more
valuable to homebuyers who want to avoid that premium.
WHY SOLAR;
Guaranteed cost savings: Buyers are purchasing decades of reduced electricity bills.
With average household electricity costs skyrocketing, solar represents protection against future rate increase.
Energy independence: As power outages become more frequent and utility rates climb, solar paired with storage offers stability and resilience.
Quality investment signal: Solar installation demonstrates that homeowners have made thoughtful, long-term improvements to the property. New homeowners inherit the solar systems benefits without the initial investment and an installation disruption.
Growing market awareness: As solar becomes mainstream, more buyers understand and appreciate its value proposition.
Ownership matters more than ever after the end of the tax credit.
The new research confirms that ownership makes a big difference when it comes to going solar.
Homes with third-party-owned solar—leased or power purchase agreement (PPA) showed no value increase compared to homes without solar. However the new owner will still benefit from reduced utility bills which makes the home more attractive to a potential buyer down the road.
This distinction becomes even more significant given the current federal policy. The residential tax credit ends December 31 2025. The commercial tax credit continues for systems that begin construction before July 2026 and are placed in service before 2028.
Owned systems represent a clear asset that reduces ongoing expenses while increasing property value.
This is why many solar experts recommend purchasing
rather than leasing your system—especially right now, with federal tax credits available to directly offset costs for owned systems only.
Solar beats traditional home improvements compared to other popular renovations.
National Association of Realtors data shows complete kitchen
remodels recover about 60% of their cost at resale. While bathroom renovations typically see a 50% cost recovery.
Solar panels can offer 100% cost recovery through property value increases alone, plus ongoing electricity savings.
Unlike renovations that primarily enhance aesthetics or
comfort, solar provides measurable, quantifiable financial benefits.
The installation process also favors solar. While kitchen or bathroom renovations can disrupt your home for months, solar
installation typically takes just one to two days and is minimally disruptive to daily life.
Even without federal incentives, solar remains a smart investment for most homeowners.
Rising electricity rates further improve solar's value. Household energy costs are expected to increase substantially as utilities expand capacity to meet growing demand.
The window for maximum returns is closing.............
With the 30% tax credit ending after December 31, 2025, and new research confirming higher-than-expected property value increases, the investment case for solar has never been stronger.
But this research proves something equally important: Solar's value extends far beyond the tax incentives.
The 5% to 10% property value increase reflects the
market's recognition of solar as a valuable, long-term asset. It’s one of the few home improvements that can pay for itself through property value increases alone and then deliver decades of additional savings.
When homebuyers purchase homes with solar, they gain energy savings and grid independence.
Benefits that remain compelling regardless of federal policy. The tax credit ending isn't the end of rooftop solar; it's just the end of an opportunity to maximize your investment in a technology that buyers increasingly value and demand.
All in all a great ROI.
Please DM or reach out for more information and the necessary steps to deploy a system by the end of the year.
