The solar advantage in Connecticut real estate continues to grow as homeowners seek energy independence
In today’s competitive Connecticut housing market, homeowners are constantly looking for ways to increase their property value. While kitchen renovations and curb appeal improvements remain popular choices, solar panel installations have emerged as a particularly significant value-booster in the Constitution State.
The Growing Solar Premium in Home Values
Back in 2019, Zillow published a groundbreaking study that revealed homes with solar panels sold for approximately 4.1% more than comparable homes without solar nationwide.1 However, the landscape has changed dramatically since then.
Recent analysis shows that homes with solar installations now command a 6.8% premium over similar non-solar properties across the United States, according to a comprehensive study by SolarReviews that examined over 400 home sales.2 For Connecticut homeowners, this national trend translates to significant potential value increases.
What makes this figure particularly impressive is the return on investment. With the average cost of solar installation in Connecticut around $18,000-$20,000 (after federal tax incentives), homeowners are potentially seeing thousands in immediate added value beyond the system cost itself.
Consistent Value Through New England Market Fluctuations
The New England housing market has experienced unprecedented volatility since 2020. The region has seen:
- Increased demand in traditionally slower Connecticut and Massachusetts suburbs
- Interest rates swinging from historic lows in 2020-2021 to significant spikes in 2022-2023
- Inflated housing costs across New England as inventory tightened
Yet through these market fluctuations—whether in buyer’s or seller’s markets—solar panels have consistently added substantial value to homes throughout Connecticut and the broader New England region.
Behind the Numbers: Comprehensive Methodology
To ensure the most accurate and unbiased results possible, the research methodology meticulously replicated Zillow’s original approach with even stricter criteria. The analysis included over 400 recently sold homes across the country, with a significant focus on Connecticut and New England, carefully matching solar homes with comparable non-solar properties.
For each solar home, we found a non-solar counterpart that met the following criteria:
- Sold within 180 days of each other
- Within 200 square feet in size
- Located in the same neighborhood (less than 0.5 miles apart)
- Matching bedroom and bathroom count (with allowance for a difference of up to 1 bedroom OR 1 bathroom if square footage was comparable)
- Similar curb appeal
- Same number of levels
The average differences between our solar and non-solar properties were minimal:
- 78.7 days between sales
- 0.4 miles distance between homes
- Just 54.2 square feet difference
- Identical average bed/bath counts (3.3 beds/2.3 baths)
This careful matching process ensures that the price differences we observed can be reasonably attributed to the presence of solar panels rather than other factors.
Solar Value in Connecticut and New England
While specific Connecticut premium data isn’t available, homeowners in the Northeast region consistently see strong returns on solar investments. According to Lawrence Berkeley National Laboratory’s research, homes with solar in the Northeast region see premiums consistent with the national average.3
The Connecticut Green Bank notes that solar installations in Connecticut provide multiple financial benefits beyond just energy savings:
- Reduced electricity costs in a state with electricity rates approximately 50% above the national average4
- Protection against future utility rate increases
- Potential property value increases in line with national trends
- Local property tax exemptions for solar energy systems in most Connecticut municipalities5
These financial benefits are particularly significant in Connecticut’s competitive housing market, where energy efficiency features are increasingly valued by homebuyers.
Real Estate Professionals See Value in Solar
The National Association of Realtors’ 2023 Realtors & Sustainability Report found that 34% of agents perceived solar installations as increasing home values in their markets.6 This trend is reflected in Connecticut’s competitive real estate market.
Steven Salansky, our founder, understands the importance of educating homeowners about both the immediate energy savings and potential long-term property value enhancement that solar provides. As stated on SAVKAT’s website, “Converting your home to solar energy not only saves you money on your utility bills, it also protects you against rising utility rates.”7
The consumer guide published by the Solar Energy Industries Association (SEIA) also notes that solar installations can be included in a home sale just like any other major home component, potentially adding value to the property.8
Real estate professionals across the country confirm this trend. According to data from the original article, one property expert observed: “Properties that come equipped with solar panels often catch the eye of buyers and tend to sell more quickly. The appeal stems not just from the energy savings over time, but also from the increasing preference for eco-friendly living among today’s home buyers.”
Beyond Price: Market Advantages of Solar
The benefits of solar installations extend beyond just higher sale prices. According to the original SolarReviews study, many real estate professionals reported that homes with solar tend to sell more quickly than those without, giving homeowners an additional market advantage.9
“Many homebuyers are actively looking for homes that already have solar panels installed,” notes the original research. This trend is particularly relevant in Connecticut, where electricity costs are significantly higher than the national average, making energy efficiency features especially attractive to prospective buyers.
Connecticut’s Strong Solar Incentives
Connecticut homeowners benefit from some of the strongest solar incentives in New England, further enhancing the return on investment:
- The Residential Renewable Energy Solutions program provides attractive compensation for excess energy production10
- Connecticut Green Bank offers affordable financing options through the Smart-E Loan program
- Net metering policies allow homeowners to receive credits for excess energy production
- Property tax exemptions for solar installations in Connecticut municipalities
- 30% Federal Investment Tax Credit through 2032 under the Inflation Reduction Act11
The Bottom Line for Connecticut Homeowners
As sustainability becomes increasingly important to Connecticut home buyers, solar installations represent both an environmental choice and a sound financial investment. The national premium data of 6.8% suggests Connecticut homeowners can potentially see thousands in added home value, often exceeding initial installation costs.
Whether planning to sell soon or looking to build long-term value in a Connecticut property, solar panels have proven to be one of the most effective home improvements for increasing resale value while simultaneously reducing energy costs and environmental impact in the Constitution State.
This article references data from multiple sources, including the SolarReviews 2024 study comparing over 400 home sales of properties with and without solar panel installations, Lawrence Berkeley National Laboratory research, CT Green Bank resources, and Solar Energy Industries Association publications.
Footnotes
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Zillow Research, “Homes With Solar Panels Sell for 4.1% More,” 2019 ↩
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SolarReviews, “Homes with Solar Sell for 6.8% More,” 2024 ↩
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Lawrence Berkeley National Laboratory, “Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes” ↩
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U.S. Energy Information Administration, “Connecticut State Energy Profile” ↩
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Connecticut General Statutes § 12-81(57) – Property tax exemption for renewable energy systems ↩
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National Association of Realtors, “2023 Realtors & Sustainability Report” ↩
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SAVKAT Solar, “Why Solar?” company website ↩
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Solar Energy Industries Association, “Consumer Guide to Home Solar,” 2023 ↩
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SolarReviews, “Homes with Solar Sell for 6.8% More,” 2024 ↩
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Connecticut Public Utilities Regulatory Authority, “Residential Renewable Energy Solutions Program” ↩
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U.S. Department of Energy, “Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics” ↩
