Solar Panels and Home Value: Do They Help or Hurt When You Sell a South Florida Home?

Solar panels and home value have a mixed relationship in South Florida. Panels you own outright can make a home more attractive and help it sell for more. Panels under a lease, a power purchase agreement or a loan can do the opposite, because the buyer has to take on the contract or you have to pay it off. Roof age, insurance and Florida's tax rules add more layers. This guide explains how each piece works so you can plan before you list.

Key takeaways

• A Zillow analysis of sales from March 2018 to February 2019 found homes with solar sold for 4.1% more on average nationwide.
• Owned panels are the simplest to sell. Leased, PPA and financed systems need extra steps at closing.
• Florida law says the value a solar system adds may not be counted in a home's property tax assessment.
• Under Florida's net metering rule, extra power earns a credit on the next bill, and leftover credits are paid out at the end of the year at the utility's avoided cost.
• The federal residential clean energy credit ended for systems installed after December 31, 2025, which changes the math for new installs.

Do solar panels add home value in South Florida?

They can. The most cited national study comes from Zillow Research. It found that homes with solar energy systems sold for 4.1% more on average than similar homes without them. For the median home at the time, that was about $9,274. The premium varied by market.

Keep that number in context, though. The study covered 2018 and 2019 sales, and it was national, not Florida-specific. Local buyers care about the same things as everyone else: the power bill, the age of the system, and whether they will own it. A newer owned system on a newer roof is an easy selling point. An older system on an aging roof, or one tied to a long contract, is a harder sell.

Why the power bill links solar panels and home value

In South Florida, air conditioning runs most of the year, so electric bills matter. Buyers like seeing proof that a solar system cuts that cost. Gather 12 months of utility bills and the system's production data before you list. That record turns a vague claim into numbers a buyer and appraiser can use.

Owned, leased or financed: how each affects solar panels and home value

How you pay for the system matters more than the panels themselves. Here is how each setup tends to play out at resale.

Owned outright

If you paid cash or have paid off the loan, the panels are part of the house. They transfer with the sale like a water heater or a pool pump. This is the cleanest case for solar panels and home value. Provide the installer's name, the warranty papers, the permit and final inspection, and the interconnection agreement with your utility.

Financed with a solar loan

Many solar loans are secured by the system, and some lenders record a UCC fixture filing in the county records. A title search may turn it up, and the lender may need to release it before closing. In most cases you pay off the loan from your proceeds, just like a mortgage. Ask your lender for a payoff letter early, so the balance does not surprise you.

Leased or under a PPA

With a lease or a power purchase agreement, a solar company owns the panels and you pay for their use or their power. When you sell, you usually have two choices. The buyer can take over the contract, which often requires a credit check and the company's approval. Otherwise, you may be able to buy out the contract or, in some cases, pay to remove the system.

Some buyers are happy to take over a lease with a low payment. Others do not want a 15 or 20 year contract, and their lender may need to review it too. Start the transfer process as soon as you go under contract, because the solar company's approval can take time.

Florida net metering and what the buyer inherits

Florida's investor-owned utilities, including FPL, follow the state's net metering rule, Rule 25-6.065. When a system makes more power than the home uses in a month, the extra goes to the grid and becomes a kilowatt-hour credit on the next bill. At the end of the calendar year, the utility pays for any unused credits at its avoided-cost rate, which is lower than the retail rate.

A new owner needs to set up service in their own name and confirm the net metering account carries over. Your interconnection paperwork helps with this step. Also note that net metering rules can change through the Florida Public Service Commission, so buyers should not assume today's terms will last forever.

Solar panels, home value and Florida property taxes

Florida protects solar owners from higher property taxes. Under section 193.624 of the Florida Statutes, the just value a renewable energy device adds to a residential property may not be counted when the home is assessed. This applies to devices installed on or after January 1, 2013.

Florida also exempts solar energy systems and their parts from state sales tax under section 212.08. For buyers, the property tax rule is the one that matters at resale. They can enjoy the system's value without seeing it in their tax assessment.

Roof age, wind rating and insurance

In Florida, the roof can matter as much as the panels. Insurers look closely at roof age and condition. Under section 627.7011, an insurer may not refuse to write or renew a homeowners policy solely because a roof is less than 15 years old. For a roof 15 years or older, the owner can get an inspection, and if it shows at least five years of useful life left, age alone is not a reason to refuse.

Solar panels complicate roof work. If the roof needs replacing in a few years, the panels have to come off and go back on, which adds cost. Buyers and inspectors know this. So a newer roof under a newer system is a strong selling point, while an old roof under panels can lead to a lower offer or a repair request.

Wind mitigation and permits

Ask your installer for the permit, the final inspection and the mounting details. A wind mitigation inspection can also help the buyer get insurance credits for roof-to-wall connections, roof shape and opening protection. Homes in Wellington, Palm Beach Gardens and Port St. Lucie all face hurricane risk, so buyers in those areas tend to ask about these papers. See our Wellington and Port St. Lucie pages for local market details.

HOA rules on solar in Florida

Under section 163.04, an HOA or deed restriction cannot ban solar collectors. The association can, however, choose the location on the roof within an orientation to the south, or within 45 degrees east or west of due south, as long as that does not hurt the system's performance. This helps sellers in HOA communities, because buyers know the panels are allowed to stay.

How appraisers treat solar panels and home value

Appraisers value solar in different ways, and not all have the same training with it. Some compare sales of homes with and without solar. Others estimate the value of the energy the system will produce. Owned systems get the most credit. Leased systems usually get little or none, because the homeowner does not own them.

You can help by handing the appraiser a one-page summary. Include the system size, install date, ownership status, warranty terms, a year of production data and the utility bills. A clear file makes it easier to give the system fair credit.

The end of the federal tax credit

For years, the federal residential clean energy credit helped offset the cost of new solar. According to the IRS, the credit is not allowed for expenditures made after December 31, 2025. The IRS treats the expense as made when installation is complete. That makes new systems cost more for buyers. As a result, an existing owned system may look more valuable to some buyers, since they skip the install cost.

Seller checklist: solar panels and home value before you list

1. Confirm whether you own, lease, finance or have a PPA.
2. Request a payoff letter or the transfer packet from the solar company or lender.
3. Pull 12 months of utility bills and production data.
4. Gather the permit, final inspection, warranty and interconnection agreement.
5. Note the roof age and get a wind mitigation report if you do not have a recent one.
6. Tell your listing agent early so the marketing and contract cover the system.

Frequently asked questions

Do solar panels increase home value in Florida?

Owned systems often do. A national Zillow study found a 4.1% premium for homes with solar. The local effect depends on the system's age, the roof, and whether the buyer will own it.

Can I sell my house with leased solar panels?

Yes. The buyer can usually take over the lease after the solar company approves them. If not, you may be able to buy out the lease before closing.

Will solar panels raise my property taxes in Florida?

No. Florida law says the value a solar system adds to a home may not be counted in the property tax assessment.

Do solar panels make home insurance harder to get?

The panels themselves rarely block coverage, but the roof under them matters. Insurers focus on roof age and condition, so keep records of both.

Should I add solar panels before selling to raise home value?

Usually not. You would pay the full install cost, and the federal credit ended after 2025. Most buyers will not pay you back the full cost of a brand-new system.

Sources

• Zillow Research, homes with solar panels sell for 4.1% more
• Florida Statutes, s. 193.624 renewable energy source devices
• Florida Department of Revenue, solar energy systems sales tax exemption
• FPL, Florida net metering rule 25-6.065
• Florida Statutes, s. 163.04 energy devices
• Florida Statutes, s. 627.7011 homeowners policies
• IRS, FAQs on changes to section 25D

Selling a home with solar? Get a free Pure Equity home value report that accounts for your system, your roof and your local market. Start with a free home valuation, or talk with our team about a lease transfer or payoff plan. Buying instead? We can help you review a solar contract before you commit.