The honest answer is "usually, but it depends" — and the details of how a system is owned matter more than most people expect.
Owned systems generally add value; financing structure matters a lot
Studies from sources like Lawrence Berkeley National Laboratory have found homes with owned solar systems tend to sell for a premium compared to similar homes without solar, roughly correlating with the value of future electricity savings. A financed system where the loan is paid off by sale is similar to owned; a leased system or one with a transferable PPA is a more complicated conversation for buyers and appraisers.
Appraisers need comparable data, which isn't always available
Solar valuation in a formal appraisal depends on the appraiser having comparable solar-equipped home sales in the area — in markets with few solar homes, appraisers may struggle to confidently value the system, which can mean the added value doesn't fully show up in an appraisal even if buyers would pay a premium.
System age and remaining warranty matter
A newer system with most of its warranty and useful life remaining is a more straightforward value-add than an older system approaching the point where an inverter or other component might need replacement soon — see our equipment lifespan guide for how that timeline typically plays out.
A leased system can complicate, not always simplify, a sale
Buyers need to either take over the remaining lease payments or the seller needs to buy out the lease before selling — this adds a step to the transaction that an owned system doesn't require, and some buyers are hesitant about assuming an unfamiliar lease obligation.
Frequently asked questions
Does a leased solar system add home value the way an owned one does?
Generally less directly — a lease is a transferable obligation rather than an asset the new owner gains, which can complicate rather than simplify a sale compared to a fully owned system.
Should I pay off my solar loan before selling my home?
It's not required, but a paid-off system is a cleaner value proposition for buyers than one with an assumable loan — whether it's worth doing depends on your specific loan terms and how much equity you have in the home overall.