Solar panels are becoming a familiar sight on rooftops across the Carolinas. With the Federal Clean Energy Tax Credit set to expire in North Carolina at the end of 2025, many homeowners are asking the big questions: Do solar panels increase home value?
While the energy savings are a clear win, the impact on property value isn’t always straightforward. At TAG, we’ve seen both sides of the equation in our appraisal work. Here’s what homeowners in North and South Carolina need to know.
The Short Answer: Yes, With the Rigth Conditions
Based on our experience, the value solar panels add depends mostly on ownership.
- Owned systems usually boost value because the homeowner has full rights, and the panels don’t have to be returned.
- Leased systems typically don’t add much, since they’re temporary and tied to a contract rather than the property.
Another key factor is market demand. Over the past decade, solar power has been a hot commodity in North Carolina, which has helped push values upward. According to SolarReviews’ 2025 data, homes with solar sold for an average of 6.9% more, or about $29,000 on a median-value home.
TAG Tip: Market conditions matter. If buyer interest in solar shifts, or if a neighborhood isn’t familiar with the technology, the resale premium may be smaller. Now, though, North Carolina buyers are still showing interest in owned systems, and values are reflecting that trend.
How Solar Panels Impact Appraisal
In North and South Carolina, the impact of solar panels on an appraisal largely depends on a few key details. Here’s what we look at:
- Ownership matters most: as mentioned earlier, owned systems always add more value than leased ones.
- System age & efficiency: Newer, high-output panels tend to carry more market appeal, especially with incentives like Duke Energy’s PowerPair Incentive, driving demand.
- Comparable Sales: Appraisers will look for recent, nearby sales of similar homes with solar panel systems. If comps are scarce, this may signal lower market demand in the area, which can reduce the impact on value.
- Documented energy savings: Verified reductions in utility bills strengthen the case of added value and help justify a higher appraisal
Why Solar Panel Values Vary in the Carolinas
In North and South Carolina, the impact of solar panels on home value varies from one location to another.
- Urban areas like the Greater Raleigh-Metro, Greensboro, and Charlotte-Metro often see higher premiums for owned, well-documented systems. Eco-conscious buyers in these markets are more likely to pay extra for solar features.
- Rural areas like Rocky Mount, Fremont, and Dunn may value solar for energy independence, but HOA restrictions or a lack of buyer familiarity can reduce the resale value.
What this means for you:
- Homeowners: Know your system’s value before selling or refinancing
- Realtors: Highlight solar benefits in listings and educate buyers on both long-term savings and resale potential (share this article as an education tool with your clients!)
Bottom line: Solar panels can be a win-win. They lower the bills today, potentially increasing the resale value tomorrow. However, the actual impact depends on ownership, market demand, and how your appraiser factors it into the assessment. The TAG team is here to help you understand the true value of your system before you sell or refinance- TAG us in!
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