Do Solar Panels Increase Home Value in Arizona? What Buyers and Sellers Should Know

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.

Solar panels aren’t just an energy upgrade — they’re a smart investment. But when it’s time to sell your home, many Arizona homeowners wonder:

“Will my solar system increase the value of my home?”

The short answer: Yes — if it’s set up correctly.

With high electricity rates from APS and SRP and a red-hot housing market in metro Phoenix, homes with solar are in high demand. Buyers are more informed than ever, and solar is quickly becoming a sought-after feature, not just a bonus.

Here’s how solar affects home value in Arizona — and what both buyers and sellers need to consider.

1. Studies Confirm That Solar Increases Home Value

National data from the U.S. Department of Energy and Zillow shows that:

• Homes with solar sell for 4% to 6% more on average

• They often sell faster than similar homes without solar

• In states with high energy use (like Arizona), the impact is even greater

That means a $500,000 home in Phoenix with solar could fetch $20,000–$30,000 more than an identical home without solar — depending on the system size and quality.

2. Owned Solar = Higher Appraisal, Smoother Sale

For solar to truly add value, it needs to be:

• Owned outright, or

• Financed with a loan that can be paid off or transferred easily

Leased systems, on the other hand:

• Do not increase property value

• May require buyers to assume lease payments

• Can complicate or delay closing if the leasing company isn’t responsive

Tip: If you’re considering selling in the next 3–5 years, a financed or fully-owned solar system is the best choice. At Phoenix Valley Solar, we help homeowners document ownership and system specs for appraisers and agents.

3. Arizona’s Climate Makes Solar More Valuable

With 110+ degree summers and some of the highest cooling demands in the U.S., Arizona homes:

• Use 30–50% more energy in the summer than homes in most other states

• Face peak rates during the hottest part of the day (especially under APS and SRP time-of-use plans)

• Benefit more from solar savings year-round due to abundant sunlight

Buyers in Phoenix, Scottsdale, Mesa, and surrounding areas understand the value of monthly savings — and will pay more for a home with a utility bill under $50/month.

4. Appraisers and Realtors Now Factor in Solar

Solar used to confuse appraisers and real estate agents — but that’s changed.

Most now use standardized tools like:

• PV Value®, which estimates solar’s contribution to home value

• Local utility bill comparisons and production estimates

• System specs (size, age, warranties, panel type)

When working with Phoenix Valley Solar, we provide:

• A full system report for your real estate agent or buyer

• Documentation of savings, performance, and tax credits used

• Transfer info for warranties, monitoring apps, and equipment

This removes friction and supports your asking price.

5. What Buyers Want to Know About Your Solar System

If you’re selling a solar-equipped home, expect these questions:

• Is the system owned or leased?

• How much did it reduce your APS or SRP bill?

• Who installed the system and when?

• What’s the warranty and equipment brand?

• Is it battery-ready or already paired with storage?

Sellers who can answer these questions with confidence tend to close faster and closer to their asking price.

6. What If You Plan to Buy Another Home After Selling?

You can claim the 30% Federal Solar Tax Credit again on a new system at your next home — as long as it’s your primary residence and you meet eligibility.

That means:

• You don’t need to move your old system (not recommended)

• You can design a new system tailored to your new roof and utility

• You start fresh with new warranties and hardware

Bonus: You also get to claim the $1,000 Arizona Solar Tax Credit again (if you haven’t already used it).

7. Final Verdict: Solar Adds Resale Value — When Done Right

In Arizona, solar is not just an energy upgrade — it’s a property value booster.

To ensure maximum resale benefit:

• Choose a reputable solar company that uses premium equipment

• Own your system or structure your financing wisely

• Document performance and savings

• Communicate with your agent and buyers early in the sales process

We help you do all of the above — whether you’re selling this year or next.

Why Work with Phoenix Valley Solar?

We help Arizona homeowners:

• Install systems that boost home value

• Provide resale documents and buyer support

• Coordinate with real estate agents and appraisers

• Remove or reconfigure systems for new builds when needed

We’re the best solar company in Phoenix for homeowners thinking long-term — and preparing for resale from day one.

Want a Solar System That Increases Home Value?

Contact Phoenix Valley Solar today for a free design consultation. We’ll help you build a solar system that pays off now — and again when you sell.

Are you considering solar energy for your home in Phoenix? Now is the perfect time to harness the power of the sun and take advantage of significant savings through federal and state tax credits. Our team at Phoenix Valley Solar can help you navigate these incentives and maximize your savings. You can also use our Arizona Solar Calculator to get an estimate of your potential benefits.