Do PV systems increase residential selling prices? If so, how can practitioners estimate this increase?

Relatively little research exists estimating the marginal impacts of photovoltaic (PV) energy systems on home sales prices. Using a large dataset of California homes that sold from 2000 through mid-2009, we find strong evidence, despite a variety of robustness checks, that existing homes with PV systems sold for a premium over comparable homes without PV systems, implying a near full return on investment. Premiums for new homes are found to be considerably lower than those for existing homes, implying, potentially, a tradeoff between price and sales velocity. The results have significant implications for homeowners, builders, appraisers, lenders, and policymakers. Some new tools have emerged which can be used to estimate premiums for PV homes.