How Solar Panels Impact Home Value in Arizona

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.

For Arizona homeowners considering solar energy, saving money on electricity is just the beginning. Solar panels can also increase the resale value of your home, making them a smart investment whether you plan to stay for decades or sell in just a few years.

Here’s everything you need to know about how installing solar can boost your property value in Arizona — and why solar-equipped homes are increasingly in demand.

1. Studies Show Solar Homes Sell for More

Multiple national studies confirm that homes with solar panels sell for a premium compared to similar homes without solar. According to research from Zillow and the Lawrence Berkeley National Laboratory:

• Solar homes in the U.S. sell for an average 4% more than comparable non-solar homes.

• In high-sun states like Arizona, that premium can be even higher due to greater energy savings potential.

Given the rising cost of electricity across Arizona, buyers today recognize the long-term value of owning a home with built-in energy production.

2. Solar Can Help Homes Sell Faster

Beyond the price premium, solar-equipped homes often sell faster than homes without solar panels.

Buyers value features that:

• Lower monthly expenses

• Promote energy independence

• Offer protection against future utility rate increases

In a competitive housing market, a home with solar panels — especially one that’s fully paid off — stands out as a better financial deal for future owners.

3. Solar Incentives Increase Return Without Raising Taxes

One major advantage in Arizona is that adding solar panels:

• Increases your home’s market value, but

• Does not increase your property taxes.

Under Arizona law, residential solar energy systems are exempt from property tax valuation. This means you get all the benefit of higher resale value without any added annual tax burden — a rare advantage for home improvements.

Combined with:

• The 30% Federal Solar Investment Tax Credit

• The $1,000 Arizona Solar Tax Credit, solar becomes a powerful tool for building home equity while keeping costs down.

4. Paid-Off Systems Offer the Greatest Value

While leased systems can add value in some cases, owned solar systems (whether purchased in cash or through a loan) deliver the highest increase in home value.

When selling a home with an owned solar system:

• Buyers get the full benefit of lower electric bills

• There are no lease assumptions or transfer agreements needed

• The transaction is simpler and more attractive

If you’re thinking about installing solar and plan to sell your home in the next 5–10 years, purchasing the system can deliver a stronger return at resale.

5. Solar Performance in Arizona Boosts Long-Term Value

Arizona’s abundant sunshine — more than 300 days a year — means solar panels here are especially productive compared to most other states.

Because systems in Arizona generate more electricity annually:

• Energy savings are greater

• Return on investment is faster

• Long-term appeal to buyers is stronger

Even after factoring in slight panel degradation over time, a well-maintained solar system in Arizona continues to deliver major value for decades.

6. How Much Does Solar Add to Home Value in Arizona?

The exact boost depends on:

• Size of the solar system (larger systems provide more value)

• Age and warranty status of the panels and inverter

• Whether the system includes battery backup

• Local utility rates and net metering policies

In general, real estate data suggests a fully owned solar system can add between $15,000 and $30,000 to a home’s sale price in Arizona — depending on system size and age.

This is in addition to the tens of thousands saved through lower electricity bills while you live in the home.

7. Solar Plus Battery Systems Are Even More Attractive

As more buyers value energy resilience and backup power, homes equipped with solar battery storage — such as a Tesla Powerwall — are becoming even more desirable.

Homes with battery systems offer:

• Backup power during grid outages

• Greater independence from utility rate spikes

• More flexible energy management

Adding storage to your solar setup can further increase your home’s marketability and ultimate resale price.

Final Thoughts: Solar Is an Investment in Your Home’s Future

Installing solar panels in Arizona doesn’t just lower your monthly bills — it builds equity, increases your property’s market value, and future-proofs your investment.

In a state where electricity costs are only expected to rise, solar remains one of the smartest upgrades you can make to your home.

Maximize Your Home’s Value with Phoenix Valley Solar

At Phoenix Valley Solar, we design custom solar systems that:

• Maximize savings and performance

• Qualify for every available incentive

• Add significant, transferable value to your home

Contact us today for a free consultation — and find out how affordable and valuable solar energy can be for your property.

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.