Having a residential solar energy system on your home is a ‘capital improvement’ which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. When you sell the home, this tax basis investment can be deducted from the sales price, reducing the taxable profit on the sale. This may help you avoid capital gains taxes on appreciation.