What to do When Selling a Home with Solar Panels

Are you selling a home with solar panels? The use of solar power on homes across the nation has skyrocketed over the past few years, but it’s not always sunny skies and colorful rainbows. The typical cost of a rooftop solar system can be well over $10,000 to install, but how can you demonstrate that value to buyers (and persuade them to pay for it)? They’ll have questions, so be prepared with answers.

Will Solar Improve Home Value?

A solar panel system can definitely add value to your home (if you own the system). Don’t feel obligated to pay high utility electricity rates today just because you might move within the next 20 years. The typical lease/PPA agreement lasts for 20 to 25 years, but going solar is still a viable money-saving solution for your house, even if you expect to sell soon. In fact, it’s well within your rights as a homeowner to sign an agreement now and then sell your home before the end of your lease term.

Studies have shown that homes with solar panels tend to sell more quickly (and for higher prices) than comparable homes without solar. This is because of the appeal of energy independence as well as energy cost savings.

Is the System Leased or Owned?

Be prepared to show when it was installed, by whom and what the warranty and service plan look like. If the system is leased, contact your solar rep about the procedures for getting the lease assigned to a new owner. They can also be in touch with your realtor to ensure a smooth transition all around.

How Much Extra Will it Cost?

The New York Times reported on a study by the Lawrence Berkeley National Laboratory appraising solar panels and found that for solar panels that are owned (not leased), buyers paid about $4 per watt. Of course, values vary from market to market.

Help sell the home by highlighting buyers about the Energy Efficient Mortgage, which allows them to qualify for a slightly higher mortgages because their cost of ownership will be somewhat lower due to the energy savings offered by qualifying homes.

How Much Can I Save?

Show your buyers the top-dollar savings that solar panels can add to their new home so they can see the value in paying more up front. Put together the energy bills from the year before the solar panels were installed and compare them to the past year’s electric bills to visually demonstrate the power savings solar has had. Remind them that savings usually increases over time; try to make a projection so they can see how much they can save in the future.

Let’s Sell Your Home with Solar

Homes with solar power systems must be properly marketed to get the maximum value from the system upon resale. The real estate listings and open houses should emphasize the energy savings potential buyers will enjoy by purchasing your solar-powered home. Buying and selling a home with solar panels doesn’t need to be overly complicated; work with a professional real estate agent who can advise you along the way.