In recent years, the global conversation around sustainability has reached a turning point, and solar energy is at its centre. Homeowners across the world are exploring clean energy solutions to reduce their carbon footprint and add value to their properties.
Let’s get straight to the question: Do solar panels increase home value?
We asked owner-broker Peter Dupuch, who has more than thirty years of experience in real estate in the Bahamas, about solar power, and he responded, “Solar is definitely a big thing! We have solar panel at our house and will be installing it at our new office location soon.”
The short answer is yes, but it depends on several key factors, such as location, system size, ownership, and local energy costs.
In places like the Bahamas, where sunshine is abundant and electricity can be costly, solar isn’t just a smart choice; it’s becoming an increasingly strategic investment. From eco-conscious buyers to off-grid island homeowners, an increasing number of people view solar as a long-term value enhancer.
In this guide, we’ll explore how solar panels affect property values, why buyers are paying attention, and what makes the case for solar especially compelling in the Bahamas.
Table of Contents
Solar Adds Value… And the Data Agrees!
What Makes Solar Homes More Valuable (And Why Buyers Care)
The Unique Case of Solar’s Role in Property Value in The Bahamas
Solar Sounds Great… But What’s the Catch?
Should You Invest in Solar Panels to Increase Home Value?
Solar Adds Value… And the Data Agrees!
Let’s not dance around it—solar panels add value to homes, and the numbers from around the world back it up. This isn’t just a trend; it’s a real shift in how buyers view energy efficiency and long-term savings.
In the U.S., for example, a study by the Lawrence Berkeley National Laboratory found that solar panels added an average of $15,000 to a home’s resale value. More recently, a 2024 report from SolarReviews found that homes with solar systems sold for approximately 6.8% more than those without. That’s an extra USD 28,000 on a median-priced home.
Zillow found, way back in 2019, that homes with solar panels sold for 4.1% more than comparable homes without solar panels. And while that might seem like old news, newer studies confirm that the link between solar energy and higher property values is growing stronger, not weaker.
Why does this matter in the Bahamas? Because we check all the boxes: high electricity costs, abundant sunshine, and increasing buyer interest in sustainable, self-sufficient living, especially on the Family Islands and private island properties.
What Makes Solar Homes More Valuable (And Why Buyers Care)
Adding solar panels can definitely boost your property’s value—but how much? It depends on a few key factors.
At the same time, understanding why buyers value solar homes helps explain where that value comes from.
Let’s break down what really matters for both sellers and buyers.
System Size and Maintenance Matter
Bigger systems that can offset a more significant portion of a home’s energy needs tend to deliver more value. Some studies indicate that a well-installed solar system can add between $4,000 and $6,000 per kilowatt to a home’s resale price.
But it’s not just about the size; how well the system is maintained also plays a significant role. High-quality panels that are properly maintained can still operate at 80–90% efficiency even after 25 years.
For sellers: If you’ve got a solar setup, make sure it’s in good condition, cleaned regularly, and comes with a solid maintenance or warranty record. This gives buyers peace of mind.
For buyers: Don’t just ask if the home has solar; also ask how much energy it actually produces, when it was installed, and whether it has been properly maintained. A well-maintained system can run efficiently for 20+ years.
Ownership Beats Leasing
Buyers love solar but only when they’re not stuck with someone else’s lease. Homes with owned systems, installed by experts such as Bahamas Solar, usually fetch better prices because they come with all the benefits and no additional contracts.
For sellers: Owning your system outright is a strong selling point. Make sure your listing clearly states this.
For buyers: Watch out for leased systems. They might come with extra costs or paperwork. If the seller is under a solar loan, ask about the terms and whether it transfers cleanly.
High Electricity Costs Make Solar a Smart Move
In the Caribbean, where electricity costs can be three times the global average, solar isn’t just about sustainability—it’s about cutting real costs.
Places like Bermuda and the Cayman Islands are paying over $0.43 per kilowatt-hour, nearly triple the global average of $0.15.
The Bahamas isn’t far behind. With most of our power coming from imported diesel, solar-equipped homes stand out as they offer long-term savings and more control over power bills. This is something every buyer pays attention to.
For sellers: Highlight your energy savings. Show recent BPL bills versus those before solar; you’ll help buyers see the value clearly.
For buyers: Think long-term. A solar system in a high-cost area like ours could mean thousands in savings over the years, and that’s money in your pocket.
Buyers Want Energy Independence
Solar systems with battery storage offer a considerable advantage in areas where grid power is unreliable or unavailable, such as private islands or parts of the Family Islands. For many buyers, this level of independence is not just appealing; it’s essential.
For sellers: If your system includes battery storage or off-grid capabilities, make sure buyers are aware. That’s a huge advantage, especially for second-home or international buyers.
For buyers: Ask if the system runs entirely off-grid and how it performs during outages. Homes with built-in self-sufficiency are often worth more in places where grid power isn’t guaranteed.
Sustainability Is in Demand
More buyers, from young professionals to luxury investors, are looking for homes that reflect their values. Beyond efficiency, a solar-powered home symbolises long-term thinking and sustainability.
Homes with solar panels are often reported to sell up to 20% faster than homes without them.
In a lifestyle-driven market like the Bahamas, a solar system can be much more than a feature—it’s a statement.
For sellers: Emphasise the lifestyle benefits: lower emissions, lower bills, and a more resilient home.
For buyers: If you’re looking for a future-ready, environmentally conscious property, solar is an excellent indicator that the home is built with long-term thinking in mind.
The Unique Case of Solar’s Role in Property Value in The Bahamas
In the Bahamas, solar energy offers more than just saving on bills; it offers freedom and peace of mind. We live on sun-soaked islands, but we rely heavily on imported fuel to keep the lights on. That’s changing fast…
As Peter points out, “in New Providence and the developed islands, solar is definitely a big thing. And, in the developing islands, solar is catching on and providing more options in terms of self-sufficiency.”
Government is Heavily Invested in Renewable Energy
The government has set a goal of obtaining 30% of our energy from renewable sources by 2030. Backed by partners like the Inter-American Development Bank, it’s already rolled out a $50 million program to bring solar microgrids to the Family Islands.
These are places where power can be unreliable and costly. With solar, people get cleaner, more dependable energy, which makes homes in these areas more attractive.
Get Rid of High Energy Costs
The cost of electricity in the Bahamas has always been a challenge. That’s why homes with solar panels don’t just appeal to eco-conscious buyers; they also attract anyone looking for long-term savings and more predictable utility bills.
The IMF has noted that high energy costs are a significant barrier to growth, and renewable energy is one of the most effective ways forward.
Government is Helping Reduce Upfront Costs
Thankfully, the government is making it easier to adopt solar energy. There are duty exemptions and import tax reductions for solar equipment, plus clean energy loan programs through development banks.
Net billing policies also allow homeowners to connect their systems to the grid and earn credits for excess power. These incentives help reduce the upfront cost and add value when it’s time to sell.
Solar Sounds Great… But What’s the Catch?
While solar energy can boost your property’s value and lower your bills, it’s not always a simple decision, especially here in the Bahamas. If you’re installing panels to increase the resale potential of your home or considering buying a solar-equipped home, here are a few things to consider.
Upfront Costs vs. Long-Term Savings
Let’s be honest: Solar isn’t cheap to install upfront.
Depending on the system size, homeowners in the Bahamas can expect to spend tens of thousands of dollars, especially if batteries are included for off-grid use. While some government programs are available to help offset the cost, the initial investment is still significant.
But the payoff is long-term.
Solar can significantly reduce your monthly power bills, especially in areas with high electricity costs, such as remote locations and private islands. For someone holding the property long enough, these savings can add up quickly and make the home more attractive to future buyers who prefer not to be tied to rising energy costs.
Pro Tip: If you’re buying a home with solar already installed, consider the age and condition of the system. A brand-new setup might save you money for years, but an older system could soon need upgrades or repairs.
Buying your first home in the Bahamas? Get ahold of our stepwise guide.
Maintenance and Durability Concerns
Solar panels are generally low-maintenance, but they do need some care, especially in island environments where salt air, heavy rains, and hurricanes are real factors.
Buyers should ask questions like: Is the system regularly serviced? What’s the warranty? Has it been hurricane-tested?
Pro Tip: If you’re a seller, it helps to have everything in order. A well-maintained system with solid paperwork, including installation records, maintenance history, and warranties, can give buyers peace of mind and support your asking price.
Ready to sell your house? Discover insider tips from listing to closing.
Grid-Tied vs. Off-Grid Solutions in The Bahamas
In Nassau and other developed areas, grid-tied systems are gaining popularity due to favourable billing policies from Bahamas Power and Light. These allow homeowners to stay connected to the grid, use solar power when available, and sell excess power back for credits. It’s a good fit if you want savings without complete independence.
But off-grid is often the only option in the Family Islands or on private islands. These systems require batteries and backup plans, which raises costs but gives total energy freedom.
For many international buyers, especially those purchasing vacation homes, a fully self-sufficient solar setup is a significant draw.
Pro Tip: Off-grid systems can be more complex to maintain. If you're buying, it’s worth getting a professional to inspect the setup. If you're selling, make sure everything is running smoothly and is clearly documented.
Should You Invest in Solar Panels to Increase Home Value?
So, will installing solar panels boost your home’s value in the Bahamas? The answer is: it depends.
Solar is a smart move in many cases, but it’s not a one-size-fits-all solution. Whether it adds resale value to your home depends on a few key factors.
What is the type and location of your property?
If your home is on a private island, one of the Family Islands, or anywhere off-grid, solar isn’t just a bonus; it’s essential. In these areas, it’s what makes a property livable, functional, and far more attractive to buyers looking for energy independence.
In more developed areas like Nassau, solar can still add value, especially with high electricity rates and net billing programs in place.
But if your property already has reliable grid power, the added value may depend on how well the system is designed and whether it delivers noticeable savings.
How long are you planning to hold the property?
If you plan to sell quickly, the full return on a solar investment may not be realised in time. But if you're in it for the long haul, solar can pay for itself and then some through both energy savings and added resale appeal.
When does solar add value, and when might it not?
Solar tends to add the most value when:
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The system is owned, not leased
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It includes battery storage
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It’s properly installed and maintained
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It’s suited to the property’s location and usage needs
It may add less value, or none, if:
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The system is old, inefficient, or poorly maintained
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It’s leased, and buyers are hesitant to take on a contract
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The energy savings don’t justify the cost in the local context
So, ultimately, do solar panels increase home value?
Solar can be a powerful value booster, but it has to make sense for your property, location, and long-term plans.
If you're unsure whether solar will add value to your home or investment, our ERA Dupuch Real Estate team is here to help. We know the islands, we know the buyers, and we understand what features truly stand out in this market.
Contact us today to talk solar, home value, and how to make your property shine, literally.
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