According to Freddie Mac’s updated guidelines (effective 08/07/2024), solar panels can increase your home’s value—if you own them. But if your panels are leased or under a PPA, they won’t be included in the appraised value. 

For properties where the homeowner owns the solar panels outright or finances them as a fixture to the property (such as through a loan secured by the property), solar can add value to the home and be considered in the appraisal. 

However, if the solar panels are part of a lease or power purchase agreement (PPA) where the panels are not owned by the homeowner (e.g., financed separately with the panels as collateral), solar does not add to the appraisal value. This is because the panels can be repossessed or are not considered part of the property itself. The appraiser will still comment on the marketability of the home with solar panels, but they won’t include the panels’ value in the appraisal. 

Understanding how solar impacts property value is key when buying or selling a home. Learn more about Freddie Mac’s guidelines on energy-efficient homes and solar panels here.