Buying or Selling a Home With Solar Panels: Pros, Cons & Pitfalls
Thinking about solar panels? Learn the pros and cons of solar panels in real estate and how they affect home value, buyers, and sellers.
If sellers are serious about selling their home, they need to be prepared for the possibility of paying off the solar system with the proceeds from the sale. There are only two ways for a seller to get value from a solar system: either factor the cost into the listing price which can be risky due to appraisal issues and the fact that solar doesn’t necessarily add value to the home or have the buyer assume the payments, provided they qualify. Pushing this onto buyers can significantly limit interest in the property.
It’s really not the buyer’s responsibility that the seller financed a solar system and is now selling the home. This burden falls more on the seller than the buyer, and success in finding a willing buyer often comes down to luck either someone who absolutely loves the home or places high value on solar.
Homeowners need to be more aware that solar panels generally don’t increase resale value before committing to a financed system.
Unfortunately, many solar companies prioritize sales over long-term implications. As it stands, selling a home with a financed solar system can be a real pain in the butt.
- Increased Property Value: Homes with owned solar systems may sell for more and faster, as buyers are attracted to lower, predictable utility bills.
- Marketability: A "green" home with sustainable energy is appealing to a certain pool of buyers.
- Energy Independence: Potential buyers see immunity from rising electricity costs as a major advantage.
- Low Maintenance: Panels have no moving parts and are durable, requiring little maintenance.
- Leased Systems: Leased panels can complicate the sale, requiring buyers to take over the contract, which some find undesirable.
- High Upfront Costs: The initial cost of installing a system is significant, and if the owner moves too soon, they may not recoup the investment.
- Roof Limitations: Older roofs or partially shaded roofs may not be suitable, and installation might require a roof replacement or some repair first.
- Property Tax Increases: In some regions, the added value from solar might increase property tax, though many areas offer exemptions.
- What if? If the roof is nearing the end of its life, removal and reinstallation costs can be significant and may not be covered by the solar provider.
- Owned vs. Leased: Owned systems, financed with cash or a loan, add value and make sales simple. Leased systems (PPAs) can complicate sales if the buyer does not want to assume the lease.
- Incentives: Local, state, and federal tax credits and rebates significantly impact the ROI.
- ROI Timeframe: It may take 10+ years for the panels to pay for themselves.
Before you install them, solar power estimators can help you determine if they're a good option. You can find solar power estimators (calculators) on various websites, but they might require you to enter your email, an address and zip code, and past electric bill amounts to get any results. We do not specifically endorse a solar panel installer on our website as the needs of the consumer, the quality of the product and installation, and the expected results could be different from one product to another.
New Hampshire & Federal Solar Power Resources
New Hampshire Residential Renewable Electrical Generation Rebate Program https://www.energy.nh.gov/renewable-energy/renewable-energy-rebates/residential-renewable-electrical-generation-rebate
EPA Solar Panel Recycle: https://www.epa.gov/hw/solar-panel-recycling
End-of-Life Solar Panels: Regulations and Management: https://www.epa.gov/hw/end-life-solar-panels-regulations-and-management