How an Owned Photovoltaic (PV) System Adds Real Value to Your Home

As energy costs continue to rise in Hawai‘i, more buyers are actively seeking homes with owned photovoltaic (PV) systems—and for good reason. Unlike leased solar systems, an owned PV system is considered a true asset, one that can add measurable value to both a home’s appraisal and its market value.

If you own a home with a fully paid-off solar system, you may be sitting on more equity than you realize.

1. Appraisers Consider Owned Solar as a Permanent Improvement

When a photovoltaic system is owned outright, appraisers can treat it like any other permanent home improvement—similar to a remodeled kitchen, new roof, or upgraded windows.

An Owned Photovoltaic system:

• Is included in the property’s overall value

• Is listed as a feature of the home, not a personal contract

• Can be used when comparing your home to other solar-equipped properties

• Often increases the final appraised value, especially when utility savings are documented

In contrast, leased systems are not included in appraised value because the homeowner does not own the equipment.

2. Lower Electric Bills = Higher Buyer Demand

Buyers today are not just purchasing a home—they’re purchasing monthly expenses. A home with an Owned Photovoltaic system can offer dramatically reduced or even eliminated electric bills, which directly impacts affordability.

This is especially important on the Big Island, where:

• Electricity rates are among the highest in the nation

• Many buyers are relocating from the mainland and actively look for energy-efficient homes

• Off-grid or hybrid homes are common and highly desirable

Homes with owned PV systems often:

• Sell faster

• Receive stronger offers

• Attract more serious, well-qualified buyers

3. Appraisers Use Energy Savings to Support Value

Appraisers can take into account:

• Size of the system (number of panels)

• Battery storage (Tesla, Enphase, LG, etc.)

• Age and condition of equipment

• Documented utility savings

• Remaining useful life of the system

A newer, well-designed owned system with battery backup is especially valuable, as it provides energy independence and resilience — a major selling point in Hawai‘i.

4. Owned Photovoltaic Improves Market Value (Not Just Appraised Value)

Beyond appraisal, the market itself assigns value to owned solar. Buyers routinely pay a premium for homes with:

• Owned PV systems

• Battery backup

• No ongoing lease payments

• No third-party contracts to assume

• Energy security during outages

In many cases, an owned solar system can return more than its installation cost at resale, especially in high-cost energy markets like Hawai‘i.

5. Solar is a Lifestyle Feature on the Big Island

On the Big Island, Owned Photovoltaic is not just an upgrade—it’s a lifestyle choice. It supports:

• Sustainable living

• Lower long-term costs

• Off-grid independence

• Environmental stewardship

• Peace of mind during outages

That lifestyle appeal directly translates into value, especially for buyers seeking to embrace the island way of life.

Thinking About Selling a Home With an Owned PV System?

If your home has an owned photovoltaic system, it’s important to highlight it correctly in the listing, provide documentation for appraisers, and ensure buyers understand the long-term financial benefit. When marketed properly, owned solar can be a powerful value booster.

If you’d like a complimentary market analysis that includes your solar system’s impact on value, I’d be happy to help.