Do Solar Panels Increase Home Value In Arizona
The short answer: yes, if you own them. Purchased solar panels boost Arizona home value by nearly 3%. Leased solar does the opposite — appraisers actually deduct value for leased systems.
“The price was in budget and they were able to accommodate our roofer's schedule.”
Suzette L. · Google Review
“I highly recommend Solar Fix for their caring approach and top-notch service!”
Melissa D. · Google Review
“Very refined process in place here with lots of communication.”
Brian G. · Google Review
Do Solar Panels Increase Home Value in Arizona
The short answer: yes, if you own them. Purchased solar panels boost Arizona home value by nearly 3%. Leased solar does the opposite — Fannie Mae's appraisal rules actually deduct value for leased systems, and homes with leases tend to sell for lower prices and stay on the market longer.
Do You Want To Sell Your Arizona Home With Solar Panels?
Before listing, the biggest question is whether the panels are owned or leased. Owned panels are an asset that transfers with the sale and raises the appraisal. Leased panels are a liability that transfers with the sale and lowers the appraisal — the buyer inherits the monthly lease payment or has to negotiate a buyout.
Your Appraisal Value Does NOT Include Lease Solar Panels
Fannie Mae explicitly updated its appraisal rules so that leased solar equipment does not add value to a home. In Phoenix, roughly 75% of homes with solar are on leases — and every one of those homes is walking into an appraisal where the panels don't count in their favor.
Is the Increase in Value of my Home Worth Purchasing Solar Panels?
For most Arizona homeowners: yes. Purchased solar increases home value by nearly 3%, and that's on top of monthly electricity bill savings. Together those add up to a meaningfully positive investment.
What Do You Mean by "Purchased Solar?"
Purchased solar means you paid for the system outright — whether with cash or through a solar loan — and you own every component. The panels, the inverter, and the racking are your property. You keep any home-value premium.
What Do You Mean by "Leased Solar?"
Leased solar means a third-party company owns the panels on your roof. You pay a monthly lease payment (usually lower than your old electric bill), and the leasing company owns the equipment. If you sell, the new owner either takes over the lease or you buy it out first.
Is there an increase in the value of solar panels in Arizona?
Yes — per Zillow data, homes with owned solar sell for around 3% more than comparable homes without solar. Arizona's abundant sunshine and long solar season make the premium consistent across the state.
By how much is the property value increased with solar?
Roughly 3% on the median Arizona home value of $252,900 — about $7,587. The premium is higher in absolute dollars on more expensive homes.
Can Solar Panels negatively impact your resale value?
Yes — but only leased systems. Fannie Mae updated its appraisal rules to decrease home value when the solar is leased rather than owned. Mike Orr, an analyst with the W.P. Carey School of Business at Arizona State University, has documented that leased solar can detract 3 to 8 percent from the value of Phoenix homes.
The Purchase vs. Lease Distinction
A purchased solar system typically costs around $25,000 to install. Many homeowners are drawn to leased solar because of the lower upfront cost. But there's a critical distinction: purchased systems increase home value, leased systems do not. You get electricity savings with either — but only ownership drives the property value up.
Mike Orr, an analyst with the W.P. Carey School of Business at Arizona State University, reviewed homes for sale with solar. The finding: a leased solar power system can detract 3 to 8 percent from the value of Phoenix homes. Homes with leased systems tend to sell for lower prices and sit on the market longer.
The Fannie Mae Rule
Fannie Mae updated its home appraisal requirements to explicitly decrease home value for houses with leased solar. That's a formal ruling — not opinion. Despite it, roughly 75% of Phoenix homes with solar are on leases, primarily because leasing has a lower upfront cost.
If you already have leased solar and want to sell, the workaround is buying out the lease before listing — sometimes that math still works, sometimes it doesn't.
The Data at a Glance
| Measure | Figure |
|---|---|
| Value Increase (Purchased Solar) | ~3% in Arizona |
| Value Decrease (Leased Solar) | 3–8% in Phoenix |
| Median Arizona Home Value (Zillow) | $252,900 |
| Estimated Value Increase (3% of median) | ~$7,587 |
| Phoenix Homes with Leased Solar | ~75% |
Is the Value Increase Worth Buying Solar?
Yes — purchased solar increases Arizona home value by nearly 3%, on top of every month of electricity bill savings. Together those add up to a meaningfully positive investment for most Arizona homeowners.
See also: AZ solar cost breakdown · Pros & cons of AZ solar · Financing options
Solar Fix AZ Offers Solar Panel Removal & Reinstall in Phoenix, AZ
Selling a home with solar? Buying one? Either way, if the panels need to come off — whether for a roof replacement, buyout negotiation, or upgrade — SolarFIX handles removal and reinstall across the Phoenix metro. Licensed, bonded, and insured, AZ ROC #323541.
See our Removal & Reinstall service page for pricing and process details.
Solar FIX, LLC Offers Solar Panel Inspection in Phoenix, AZ
SolarFIX is a licensed, bonded, and insured solar contractor (AZ ROC #323541) serving the entire Phoenix metro. Thinking about buying a home with solar? A proper pre-purchase inspection is the fastest way to know what you're actually inheriting.
FAQ
Is there an increase in home value from solar panels in Arizona?+
It depends on ownership. Buying increases home value; leasing decreases it. That distinction is the single most important thing to know before signing anything.
By how much is property value increased with solar?+
Per Zillow data, roughly 3% on the median Arizona home value of $252,900 — about $7,587. The premium is higher on more expensive homes.
Can solar panels negatively impact resale value?+
Yes — but only leased systems. Fannie Mae updated its appraisal rules to decrease home value when the solar is leased rather than owned.
Why does leasing hurt the value?+
Because the panels aren't yours — they belong to the leasing company, and the new owner inherits the lease liability. That reduces the pool of interested buyers and typically drags down the sale price by 3-8%.
Should I buy or lease?+
If you can afford to buy (cash or finance), buy. You own the system and keep the home-value premium. Leasing gives you savings on electricity but nothing else.
Thinking About Going Solar?
SolarFIX doesn't have salespeople — call to have an honest conversation about whether owning solar makes sense for your home.