An increasing number of homes with existing photovoltaic (PV) energy systems have sold in the U.S., yet relatively little research exists that estimates the marginal impacts of those PV systems on the sales price. A clearer understanding of these effects might influence the decisions of homeowners, home buyers and PV home builders. This research analyzes a large dataset of California homes that sold from 2000 through mid-2009 with PV installed. Across a large number of hedonic and repeat sales model specifications and robustness tests, the analysis finds strong evidence that homes with PV systems sold for a premium over comparable homes without. The effects range, on average, from approximately $3.9 to $6.4 per installed watt (DC), with most models coalescing near $5.5/watt, which corresponds to a premium of approximately $17,000 for a 3,100 watt system. The research also shows that, as PV systems age, the premium enjoyed at the time of home sale decreases. Additionally, existing homes with PV systems are found to have commanded a larger sales price premium than new homes with similarly sized PV systems. Reasons for this discrepancy are suggested, yet further research is warranted in this area as well as a number of other areas …

An increasing number of homes in the U.S. have sold with photovoltaic (PV) energy systems installed at the time of sale, yet relatively little research exists that provides estimates of the marginal impacts of those PV systems on home sale prices. This research analyzes a large dataset of California homes that sold from 2000 through mid-2009 with PV installed. We find strong evidence that homes with PV systems sold for a premium over comparable homes without PV systems during this time frame. Estimates for this premium expressed in dollars per watt of installed PV range, from roughly $4 to $6.4/watt across the full dataset, to approximately $2.3/watt for new homes, to more than $6/watt for existing homes. A number of ideas for further research are suggested.

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