Do Solar Panels Add Value to a Utah Home? Owned vs. Leased Systems When You Sell

By Dan VanSweden, REALTOR® | VanSweden Real Estate Group, KW Westfield (Excellence) | Helping Utah buyers and sellers since 2017

Solar panels can add value to a Utah home, but mostly when the system is owned outright, in good shape, and backed by clear paperwork. A leased or financed system can still sell fine in Utah County and along the Wasatch Front, but it adds steps to the sale and rarely raises the appraised value the way an owned system can.

I'm Dan VanSweden, a Spanish Fork–based agent serving Utah, Salt Lake, Davis, Weber and Wasatch counties. Here's how solar actually plays out when you sell.

How much value do solar panels add to a home?

National studies show a real premium, but the amount for your house depends on ownership, system age and your local market.

According to a SolarReviews analysis of Zillow sales data, homes with solar sold for about 6.9% more on average across the U.S. than comparable homes without it. That's a national average, not a promise for any one home. In Utah County, appraisers still have to find comparable sales with solar nearby, and buyers weigh the system against its age, size and remaining warranty.

Solar tends to help most when the seller can hand a buyer a simple story: we own it, here are 12 months of power bills, and here's the warranty.

Does it matter if my solar panels are owned or leased?

Yes. Ownership is the single biggest factor in whether solar adds value or just adds paperwork.

• Owned (paid in full): The panels are part of the house. They can be counted by an appraiser and marketed as a feature.
• Owned with a solar loan: The panels are yours, but the loan usually has to be paid off at closing. Some solar loans also record a UCC filing against the property that the title company will need released.
• Leased or a power purchase agreement (PPA): The solar company owns the equipment. The buyer typically has to qualify for and take over the lease, or you buy it out. Lenders and appraisers generally don't add value for equipment the homeowner doesn't own.

The HomeLight guide to selling with leased panels walks through the transfer and buyout options. My advice: call your solar company before you list and ask for the transfer process, any fees and a buyout quote, so there are no surprises under contract.

How does Rocky Mountain Power's net billing affect what buyers will pay?

It shapes how much a buyer saves each month, so it shapes how much they'll pay for the system.

Rocky Mountain Power customers who connected solar after October 30, 2020 are on Schedule 137 "Net Billing," where exported power earns an export credit rate that is recalculated each year, according to Utah Clean Energy. That credit is lower than the retail price you pay for power, so systems sized to cover what the home actually uses tend to deliver the most value. Older systems may be on grandfathered programs: Utah Clean Energy lists the Transition Program (Schedule 136) as grandfathered until January 1, 2033 and original Net Metering (Schedule 135) until January 1, 2036.

Buyers will ask which program the home is on and whether it carries over to them, so confirm that with Rocky Mountain Power before you list. Some Utah County cities, including Spanish Fork, run their own electric utility with their own solar rules, so check with your city if your power bill doesn't come from Rocky Mountain Power.

Does the federal solar tax credit still matter when I sell?

Not for new systems. The IRS says the 30% Residential Clean Energy Credit is not available for property placed in service after December 31, 2025.

That changes the math on both sides. Adding panels right before you sell is now harder to justify, and a system that's already on the roof may look more attractive to buyers who can't get that credit on a new install. Either way, the credit belonged to whoever installed the system. It doesn't pass to a buyer.

How to get full value for solar when you sell your Utah home

A little prep makes solar a selling point instead of a question mark:

• Gather 12 months of utility bills showing your usage and solar credits.
• Find the installation contract, system size, panel and inverter warranties, and any roof-penetration warranty.
• Know your ownership status and loan or lease balance. Request a payoff or transfer packet early.
• Get a monitoring screenshot or production report showing the system is working.
• Make sure the roof under the panels is in good shape. Buyers and inspectors will look closely at roof age.

When I list a home with solar, I put these details in the listing and share the documents with buyer's agents up front, which helps the appraiser and keeps the deal moving.

Frequently Asked Questions

Do leased solar panels hurt a home's value in Utah?

They usually don't add appraised value, and some buyers walk away from taking over a lease. The home can still sell well if the transfer terms are clear and the monthly payment makes sense against the power savings. Getting the transfer packet before you list helps a lot.

Should I install solar panels before selling my house?

Usually not. With the federal credit gone for new installs and appraisers needing comparable solar sales, you're unlikely to recover the full cost in a quick sale. Cleaning, repairs and smart pricing tend to pay back more.

Will an appraiser count my solar panels?

Owned systems can be counted if the appraiser has supporting data, such as nearby sales of homes with solar and your production records. Leased systems generally aren't counted because the homeowner doesn't own the equipment.

Thinking about selling a home with solar in Utah County or along the Wasatch Front? Call or text me at 801-857-5831, or request a free home valuation and I'll show you how solar and everything else about your home factors into today's price. You can also browse more seller guides on the VanSweden Real Estate blog.