An investment in solar photovoltaic (PV) is considered a home improvement, and should be reflected in home sales prices. However, uncertainty about PV policies and information asymmetries may result in an imperfect pass-through. Hawai'i serves as an illustrative case study to assess the impact of PV on home prices because Hawai'i has the highest number of PV installations per capita nationwide. Applying a hedonic pricing model using home resale and PV building permit data from 2000 to 2013 for O'ahu, I find that the presence of PV adds on average 5.4% to the value of a home. The value of PV exceeds total average installed costs because many of Hawai'i's electricity circuits have reached legal limits for PV installations and thus many neighborhoods could technically no longer install additional PV capacity. Therefore, the value of the system goes beyond its capital investment on average, by w$5000-to incorporate expected electricity savings. (C) 2016 Elsevier Ltd. All rights reserved.