Buying a home is a major decision and a big investment. Installing home solar panels on your property to use solar power at home can have a bit impact on a home’s value. What should you know when considering buying a home with solar panels already on it? A buyer needs to know about the panels and system, the utility costs of the home, the company the owners have used, and other details.
We’ll go over helpful questions to help you know if a property with solar panels already up will make good financial and energy sense when you buy and for years after.
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10 Questions to Ask When Buying a House With Solar Panels
To uncover the true value of an existing set of solar panels, already on a house you’re thinking about buying, we recommend asking these 10 questions before making a decision.
1. When were the solar panels installed?
Knowing the exact age of your future solar panels and all components in the system is very important to determine their present value. Today, most solar panels operate efficiently for 25 to 30 years, meaning that systems installed in the last 10 years or so should still have a long road of emission-free electricity production ahead. On the other hand, solar panels close to that 25-year mark may no longer be as efficient and cost-saving as their younger selves.
2. What company installed the solar panels?
Besides the age of the system, the company that installed it is perhaps the most valuable piece of information you should have. If after a bit of research, you discover the original installer has a bad reputation, you may be able to avoid issues the home seller is trying to escape. Of course, on the flip side, you may be delighted to find the homeowner is working with a five-star solar company like Palmetto.
3. Who can I contact with questions about the solar panels?
If the original company or contractor that installed your seller's solar panels is still in business, it should be relatively easy to find contact information for customer support. However, if the solar panels are “orphaned” and the original installer is no longer available, the home seller may have a new contact with an individual or business that can assist with the transition, answer questions, and handle future maintenance.
4. Are the solar panels purchased, leased, or something else?
Knowing whether the current homeowners have chosen to buy or lease their solar panels is vital to determine if purchasing the home will be worth your investment. While the solar ownership model usually increases home value and typically comes with few ongoing payments, solar leases can complicate things if the terms of the agreement need to be transferred into your name. In both instances, you must determine how the current and future cash flow of the solar panels will affect your home’s expected finances.
5. Can I see the solar electricity production data so far?
In plain sight, it’s impossible to tell whether or not solar panels are actively generating electricity, and taking the seller's word for it is an unnecessary risk. To make sure the system is working as promised, ask the seller if you can see the electricity production data from what the solar panels are generating and have generated. This information may come in two forms: past electricity bills or through digital solar monitoring software like the Palmetto App.
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6. How much is your average electricity bill?
The ultimate goal of most solar buyers is to save money on electricity costs. If reduced electricity bills are a key selling point of the home you plan to purchase, the current owners should have no problem at all sharing their past electricity bills that reflect these solar savings. Seeing electricity bills can also help you prepare for the seasonality of solar panels so that you know what energy expenses to expect throughout the year.
7. Is the solar system still under a warranty?
Home solar panels should have long warranties since solar panels are expected to last and operate efficiently for 25 years or longer. But, different components, such as inverters or batteries, could have different length warranties. Battery warranties are generally 10-15 years, so it’s common to replace batteries in a home solar system’s full lifespan.
8. Have you had any issues or maintenance performed on the system?
If you are buying a house with solar panels on it, ask the seller if anything has gone wrong with the system. While post-installation issues with solar panels are fairly rare, issues during extreme weather or a natural disaster can happen. Frequent losses in power output may be signs of larger problems. In the case a part malfunctioned in the past but appears to be operating fine currently, any previous fixes shouldn't discount the value of a currently-functioning solar system.
9. Does the system have battery backup? How often do you use battery backup power?
There are pros and cons to having battery backup with a solar system, so a system with no battery isn’t necessarily a drawback. A new buyer should know specifics such as capacity, how and when the current owner uses battery power, and how the system and batteries work together. Is the current owner using backup power every night? Just during emergencies?
10. What should I expect at the end of the panels’ working lifetime?
Even though it may be more than 20 years in the future, thinking about the end of your solar panels’ lifetime may also factor into your home-buying decision. At the end of a solar lease, you may have several choices to terminate, extend, or renew your agreement, as well as the possibility to buy out your equipment. On the other hand, if you purchase a home with solar panels that have been paid off (i.e. financed by the sellers), you will then want to verify if there are any costs associated with the panels’ eventual removal.
Pros and Cons of Buying a House with Solar Panels
Here's a look at the three most important pros and cons of buying a house with solar panels already installed.
| Pros | Cons |
|---|---|
| Lowered utility electric bills may be included as a home amenity | The price of a home with solar is generally more expensive upfront, given the value of the panels |
| Solar can help meet personal sustainability goals and lower carbon guilt while powering home lights and appliances | Homes with solar sell roughly 20% faster than homes without, making competition sometimes fierce |
| Solar panels help lower grid dependence and pair well with home batteries and EV chargers | Inheriting an unfavorable lease or shotty system can lead to additional expenses down the line |
Should You Buy a House With Solar Panels on it?
Moving into a home with solar power already in place has savings, energy-independent, and environmental benefits in most cases.
Running through some easy questions is a great way to facilitate an honest and helpful conversation about how solar panels can be a positive part of your investment right when you move in and in the long term.
A solar-powered home can have a smaller-than--usual monthly utility bill, keeping your living expenses lower for years to come.
To see more about the benefits and savings with solar power and moving toward home electrification, you can use our solar savings calculator or home energy advisor.
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Frequently Asked Questions
Is it worth buying a house with solar panels?
In most cases, solar panels make a property more valuable. Most home solar systems give homeowners savings on energy bills, clean and independent energy, and a valuable addition to the home which needs little maintenance.
Should you buy a house with a solar lease?
Buying or selling a home with a solar lease can have the extra steps for the new buyer agreeing to take on the lease or the seller buying out the lease. Either way, a solar lease can give you savings on utility bills and easy care of the solar system for the life of the lease.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew GiermakWriter and EditorAndrew joined Palmetto in Charlotte in August 2024. He’s been a writer in journalism, then in business, going back to almost the 20th century. He’s lived in Indiana, Virginia, Pennsylvania, Virginia again, and now North Carolina for the last 12 years. He likes golf. Is he good at it? Not so much.
