Having a solar water heating system on your property is known as 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. If you sell the home, this tax-basis investment can be deducted from the sales price, reducing the amount of the price counted as proﬁt. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on appreciation.