Using a large sample of property sales data and high-resolution aerial maps, this study provides the first empirical estimate of the price premium of properties with photovoltaic (PV) panels in Australia. We use three model specifications to control for spatial heterogeneity and correlation as well as price dynamics over time. Results from hedonic models, repeated sales models and hybrid models have all shown strong evidence that PV panels contribute a 2.34 to 4.12 percent premium to properties prices. This suggests that PV investments are, on average, over-capitalized into property prices during our sample period, which we argue is largely a reflection of changing policy parameters regarding feed-in tariffs. Greater premium is found in localities with a larger share of votes for the Green Party and Australian Labor Party in 2008 State Election and votes for no daylight saving in 2009 State Referendum, registered Prius hybrid vehicles and college graduates and postgraduates. The results have significant implications for property owners, builders, financial institutions, PV retailers, and policy makers.