Power in the pitch: narratives and market value of solar PV homes in New Zealand

Abstract

Purpose Residential solar photovoltaics (PV) have expanded rapidly in many countries, yet little is known about how solar features are communicated in property marketing or how they are capitalised in housing markets with low incentives and limited uptake. Existing international research primarily focuses on price effects in higher-penetration settings and has not included large-scale analysis of listing narratives. This study aims to address these gaps by examining how solar homes are described in real estate advertising and whether solar installations influence sale prices and days on market in Aotearoa New Zealand. Design/methodology/approach The analysis draws on a four-year set of 79,944 matched listings and sales, combining nearest-neighbour propensity score matching, fixed-effects regression and topic modelling of listing descriptions. Findings Results show that solar homes are marketed through lifestyle, rural and quality cues rather than explicit sustainability framing, suggesting that PV is bundled with broader amenity signals rather than positioned as a distinct attribute. PV-equipped homes command an average sale price premium of 1.34%, with no significant difference in days on market. Effects do not vary with solar irradiance or local solar penetration, indicating limited salience of site-specific energy benefits in buyer decision-making. Originality/value The study contributes theoretically by integrating price capitalisation, behavioural economics and marketing narratives. It offers an explanation for why sustainability framing may be limited in a setting where financial incentives are weak. Practically, the findings highlight a need for clearer communication of PV performance and financial benefits in real estate markets, along with policy measures that strengthen the salience for prospective buyers.