Do Solar Panels Increase Home Value in Portland, Oregon?

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Updated 05/2024

There have been a number of national studies on the impact installing solar panels has on home value. But, as one might imagine, there is likely a strong regional effect. Installing solar panels in Arizona might be a lot more desirable and have a greater impact on their home values, than adding solar panels to a home in the cloudy Pacific Northwest. So it is important to have some local research done, so a homeowner knows what the home value impact will be where they live, in this case Portland, Oregon, which is also likely to reflect the impact of solar panels on home values within its greater region – the Pacific Northwest. (We conduct many other regular research reports on what causes a home to sell for more or less in our area.)

The Impact of Solar Panels on Home Value Nationally

One of the largest studies every done to study the impact solar panels has on home values was conducted by Berkeley Labs in 2015. The solar panel study spanned millions of homes over eight states and found that homes with solar panels sold for $15,000 more on average than those that did not. Notably though, none of the eight states researched were located in the Pacific Northwest.

The National Renewable Energy Laboratory (NREL) also conducted a huge research study for the Appraisal Institute in 2008, which states that home value increases $20 for ever $1 reduction in utility bills. So a solar system that saves a homeowner 1,000 a year, would increase the value of their home by $20,000. This solar panel study is cited often across the web. The study did include one PNW location, Seattle, WA, and concluded the savings there would only average out to $150 a year, increasing the home value by a measly $3,000 according to their own formula. The state of Oregon wasn’t included in this study. Also, dated back in 2008, this study is fairly dated now.

The above two studies are often cited in the myriad of copy-cat articles you can find on this subject online. Since neither one conducted any research in Oregon, it becomes even more important for us to do a little research.

The Impact of Solar Panels on Portland, Oregon Home Value
2022 – 2024

Solar Panel Home Value Impact in Portland, Oregon in 2022

Using the available data from RMLS, we research all detached home sales in the city of Portland proper.
We look for homes that sold with the solar panel feature checkbox filled out, versus the homes that did not advertise solar panels.


2022
Last Quarter
Homes
with Solar Panels
Homes
Sold Without
DifferenceNotes
Number Sold23 Homes1,505 Homes
Median Price$720,000$550,000$170,000Solar panels are more
likely to be installed on
expensive homes.
Median Size2,601 sq. ft. 2,027 sq. ft. 574 sq. ft. Solar panels are more
likely to be installed on
bigger homes.
Average Sold
Price Per Sq. Ft.
$297$293$4Usually bigger homes sell for
less per sq. ft. (see research)
so
this is significant. This is a 1.4%
increase in home value.
Average
Days on Market
43 Days49 Days6 DaysHomes with Panels
Sold 12% Faster

2022 Solar Panel Home Value Summary

In summary, homes with solar panels in Portland in 2022 tended to be bigger than average and more expensive than average. They sold 12% faster and for 1.4% more per sq. ft. A 1.4% increase in home value for a median priced home in Portland of $550,000 means an increase in home value of $7,700. Not that much, but better than the 2008 study conducted in Seattle, which only saw a $3,000 home value increase.

Solar Panel Home Value Impact in Portland, Oregon in 2024


2024
02/01-05/29
Homes
with Solar Panels
Homes
Sold Without
DifferenceNotes
Number Sold18 Homes1,926 Homes
Median Price$737,449$590,000$147,000Solar panels are more
likely to be installed on
expensive homes.
Median Size2,397 sq. ft.2,026 sq. ft.371 sq. ft.Solar panels are more
likely to be installed on
bigger homes.
Average Sold
Price Per Sq. Ft.
$301$312-$11Usually bigger homes sell for
less per sq. ft. (see research)
.
In this years Portland sample,
Solar did not seem to increase
home value at all, but it unlikely
to have decreased home value,
due to the size difference.
Average
Days on Market
44 Days53 Days9 DaysHomes with Panels
Sold 17% Faster

2024 Solar Panel Home Value Summary

Homes with solar panels in 2024 sold 17% faster, but according to this hard data did not sell for more. At best, the solar panels made no home value difference, as we have noted above, bigger homes sell for less per sq. ft. as a general (and researched rule). So the -3.6% price per sq. ft. difference could be fully explained by the size differential. However, it would be hard to see that solar panels added any home value in their years market, other than helping the home to sell faster. Another potential factor is that homes with solar panels median price was $737,449, a slightly higher and tougher price range to sell in Portland, Oregon during this rather tough real estate year. It will be interesting to see as we continue to run this report (bookmark this page) in years to come, if hotter market years with easier home sales, makes the solar panel add-on value stand out, and provide more home value.

Solar Panels Help Homes in Portland, Oregon to Sell Faster and For More?

This was true in 2022 and only half true in 2024. We hope to continue to run this solar panel home value report for Portland, Oregon in the future. Stay tuned.

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