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Guide to Selling a House with Solar Panels: What to Know

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UpdatedJanuary 7, 2025
AuthorA picture of Andrew Giermak.Andrew GiermakWriter and EditorEditorHeadshot of Andrew Blok.Andrew BlokWriter and Editor
In this article
01.
Tips for Selling Your House With Solar Panels
02.
Are Houses With Solar Panels Easier or Harder to Sell?
03.
Selling Your House With Owned Solar Panels
04.
Can You Move Solar Panels to a New Home?
05.
Frequently Asked Questions

Solar panels can generate electricity for your home for 25 years or longer. What happens if you’re not planning on staying put until the 2050s? How does selling a house with solar panels work? 

The finances of going solar are still likely to make good sense if you’re selling your home sometime down the line. Here’s what you need to know if you’re selling your home with solar panels.

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Tips for Selling Your House With Solar Panels

Solar power systems are gaining popularity across the country, especially as the cost of solar panels decreases and solar panel efficiency increases. As a result, the demand for solar-powered homes in the national real estate market is on the rise, evidenced by faster sales and higher sale prices relative to comparable homes without solar.

So how do you capitalize on the demand? These tips will help you talk to realtors and potential buyers about how buying your home with solar panels will be worth the investment.

Communicate the financial benefits of solar power

Although the sale price of a home with solar panels might be higher than a home without them, solar panels offer buyers immediate and long-term savings that may offset the initial costs. A homeowner is likely to see savings through:

  • Reduced energy bills: When your solar panels generate the electricity you use, you could see a smaller electricity bill.
  • Protection from rising energy costs: Electricity rates keep rising each year, so a solar power system can help shield you from future price increases.
  • Net metering credits: If the solar panels generate more electricity than you use, you may be able to send the excess energy to the electricity grid in exchange for net metering credit from the utility company.
  • Increased home value: In case the buyer decides to sell in a few years, solar panels currently improve home values by 4.1% on average, and those savings could keep rising.

Note: Net metering is not available in every area. Check with your electricity provider to see how rates are structured for your home.

Communicate the warranties and service agreements

When selling a house with solar panels, you should introduce the buyer to your solar provider and assist the transfer of any contracts, service agreements, and warranties.

The following warranties should transfer to the new homeowner:

  • Panel product and performance warranty (manufacturer's warranty)
  • Inverter warranty (manufacturer's warranty)
  • Workmanship warranty (for Palmetto customers, 10-year)
  • Roof penetration warranty (for Palmetto customers, 5-year)

You can also provide the potential homebuyer with your installation contract that describes your warranty and protection plan such as Palmetto Protect.

Get an appraisal for your home

Getting an updated appraisal of your home that includes your solar panels will add value to your property. You should work with a real estate agent or appraiser who has experience selling homes with solar panels, based on any of these valuation methods:

  • Income-based valuation: Focusing on the projected income the solar system will generate for the owner over its forecasted remaining lifespan, it’s a practical way to explain the return on investment to potential homebuyers.
  • Cost-based valuation: This method calculates the cost of building the current type of solar system on the home based on the quality of the equipment.
  • Market-based valuation: A method that determines your home's market value by observing the impact of the system on the home's value compared to those without a solar system.

Communicate the environmental benefits of solar power

Solar panels produce clean, renewable, and emission-free electricity. An eco-friendly homebuyer will immediately understand the value of solar energy, including:

  • Reduced air pollution: Solar panels create clean energy that doesn't send pollutants into the atmosphere.
  • Reduced carbon emissions: Going solar reduces the demand for fossil fuels, limits the emission of greenhouse gasses, and shrinks your carbon footprint.

See how much you can save by going solar with Palmetto

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My electric bill is $290/mo

Are Houses With Solar Panels Easier or Harder to Sell?

Solar panels can increase the value of your home, and there is some evidence that homes with solar sell faster than those without. In general, it can be a smooth process if you understand both the benefits and the challenges of selling a house with solar panels.

Easier to sell with solar

Solar panels don't require a lot of maintenance and are likely to offer homebuyers greater value over the long term. These benefits and others should make solar panels a selling point for many homebuyers.

  • Increasingly popular: Current market research tells us buyers are willing to pay more for homes with solar panels than those without.
  • Low maintenance: Relieve buyer concerns by sharing that solar panel cleaning isn’t that complex, and when needed, it’s often handled by the solar panel installer. Moreover, solar power systems are designed to withstand the elements so they won’t damage easily.
  • Financial perks: Solar panels can lower monthly energy bills, especially if the homebuyer uses less electricity than the system generates.
  • Helps the environment: An eco-conscious homebuyer will be excited to buy a home with solar panels that can reduce greenhouse gas emissions.

Harder to sell with solar

Selling a home with solar panels can be a smooth process, but you may still encounter the following obstacles:

  • Buyer hesitation: Buyers might not understand the benefits of a solar energy system, so they may be concerned about system maintenance and repairs. Agents might not understand or communicate the benefits of a solar energy system, which could lead to confusion about a higher asking price.
  • Seller issues: The selling process can be complex if you can’t produce the necessary documentation about your solar panel system, and you could lose out on that potential extra value.
  • Solar leases: Solar leases can be transferred but it requires involving the leasing company. Understand your options when you sign the lease so you aren’t surprised when you sell your home.

Selling Your House With Owned Solar Panels

If you own your solar panels outright, it’s the easiest scenario for selling your home. Solar panels that have been purchased and paid for don’t require multi-party solutions to transfer solar panel ownership. In addition, homebuyers are often willing to pay more money for a home with owned solar panels than one with leased solar panels.

Selling your home with a solar loan

When selling a house with a solar loan, the lending institution can help you transfer the solar loan to the new homeowner. However, your selling options depend on how you financed the loan, namely whether it was a secured or unsecured loan.

  • If you bought the financed solar panels using a secured loan, you have to clear the loan before selling your home.
  • If you bought the solar system using an unsecured loan, the solar loan is not tied to your property, so you can sell your property before clearing the loan.

Selling your home with a solar lease or PPA

Selling a home with a solar lease involves either buying out the system before you sell or selling the house and transferring the solar lease at the same time. If you want to buy out the system, the company will give you a quote and you can move forward.

If you want to transfer a solar lease or power purchase agreement (PPA) you’ll have to work with the solar company and seller. 

Can You Move Solar Panels to a New Home?

You love your solar panel system, but you also want to move. Can you remove the panels from your current home and install them on your new one? Unfortunately, the answer is most often no.

First, your solar system was designed specifically for the roof, geography, electric rates, and other factors specific to that home. A new home and new location will need a new system to be effective. Next, removing panels and components could damage the system parts and the roof. Savings you hope to see by moving your system could be wiped out by repairs on the home you're selling. 

If you're thinking about selling your home with Palmetto solar panels, you should learn about your options for transferring the warranty and Palmetto Protect service plan to the new owner. You can also contact our service department to schedule an inspection of your solar panel system to verify that everything is up-to-date before you sell your home.

See what solar can do for you:

My electric bill is $290/mo

Frequently Asked Questions

Is it difficult to sell a home with solar panels?

Selling a home with solar panels is usually easier and the home usually sells for a higher price. The benefits are generally greater if the seller owns the system. If the solar system is in a lease or PPA, there can be additional steps to transferring the system to the prospective buyer. 

Do solar panels increase a home’s value?

Solar panels increase average home value in almost all cases. According to a 2019 study by Zillow, homes with solar power sell for about 4% more than homes without it. 

Do solar warranties transfer when you sell your home?

Yes, solar warranties should transfer to the new homeowner. It’s important to check the details of a warranty to understand the conditions and transfer process.

About the AuthorA picture of Andrew Giermak.Andrew GiermakWriter and Editor

Andrew 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.

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