The Complete Guide to Selling Your House With Solar Panels
Selling Your Home With Solar Panels
Selling your home with solar panels can be a great way to make money on the property without doing significant work.
To evaluate whether it’s worth selling, you should consider how much the property would sell for if it were a standard detached home without solar panels, and how much you could expect to recoup from selling your roof as a standalone product.
Selling Your Home With a Solar Loan
If you bought your solar panels with a secured loan, you will have to pay off the balance of the loan before selling. This is because the solar panels are considered part of the property and will be included in the sale.
There is no prepayment penalty if you finance your purchase with a secured loan; however, there are prepayment penalties if you finance with an unsecured loan or lease. This means that you would have to continue making payments on the solar loan even after you sell your home.
Unsecured loans are not tied to the property, so the homeowner is free to sell their home and move prior to paying off the loan. However, they would then have to find another way to finance their new home.
You would clear the solar loan before selling your home with a secured loan, but not an unsecured loan. A secured loan is sold together with property, while unsecured loans aren’t tied to any specific property or property price.
Selling Your Home with a Solar Lease
When homeowners decide to go solar, they have two options: purchase the system outright or lease the panels from a company.
A solar lease is a type of agreement between a homeowner and a company where the company owns the solar panels. The homeowner often has two options: either get out at the end of their lease or try to transfer it to another person who wants their home’s solar energy system. It can be more difficult to sell a house with a leased solar panel, but not impossible.
Selling Your Home with a Solar PPA
A solar PPA is an agreement between a homeowner and a solar installer, which owns the panels. When you sell your home with a solar PPA attached to it, the seller of the home has to sell the house with a solar PPA attached to it.
Solar companies should negotiate separately from real estate agents for agreements between homeowners and sun-powered sellers. If the new homeowner wants to switch from a traditional power source to a solar PPA, they have options. The first option is for the seller to transfer their agreement over to the new owner, who must meet certain criteria for approval by the company.
You can buy out your solar PPA. It is easy to transfer your PPA with the right buyer, but it might take more effort than if you owned your panels yourself.
How do you determine the value of your house with solar panels?
There is no “one size” fit all way to determine the value of your house with solar panels. The value will vary depending on how much power you are able to generate, how much your electric bill is, how far you are from the electrical grid, and other factors.
Look at the value of comparable homes in your area
When you’re looking to buy a home, one of the first things you’ll want to do is research the market and see what comparable homes are selling for. This will give you a good idea of what your home is worth.
But what if you’re thinking about installing solar panels? How does that change the value of your home?
Well, it depends on whether you buy or lease your solar panels. If you buy them, the estimated value of your home will likely increase by a few thousand dollars. But if you lease them, the value of your home is likely not affected by having solar energy.
For example, in Zillow‘s study of over 22,000 homes, they found that buyers were willing to pay an additional $15,000 for a solar panel system. The average solar panel system size is 8 kW–so this could be a significant increase in value depending on where you live.
Solar panels are more valuable in states that have high electricity rates. In these states, people are more likely to invest in solar because they can save more money on their electric bills. Solar panels sold for an average of 4.1% more than other homes in Zillow’s study.
So if you’re thinking about going solar, it’s important to look at the value of comparable homes in your area. This will give you a good idea of how much your home is worth with or without solar panels.
Look at the cost of the system
When looking to buy a home with solar panels, the first question you should ask is how much the system costs. This includes the price of the system, installation, and any necessary permits. You should also look at whether or not there are any rebates or credits available to help offset some of these costs.
You can expect that a solar panel system will increase the value of your home. However, this amount may vary depending on where you live.
Look at the age of the system
When you’re buying a home with solar panels already installed, one of the first things you want to do is look at the age of the system. A reputable installer will have made a lot of improvements since they installed your system, and will be able to help you if things go wrong in the future. However, it’s always good to have a backup plan- make sure that the current residents own it- this ensures that the installer is still available for service. If you’re not sure where to find these documents, take a look at the original contract for the solar panels. All warranties should be transferable to new owners.
Look at the type of system
When looking at the value of a solar panel system, potential buyers should consider the type of system. The most common systems are either purchased outright or leased from a solar power company.
The payback period for solar panels is up to 7 to 10 years and the average price is around $20,498.
If you purchase your system, you will have to wait until it pays for itself before seeing any return on investment. However, many companies offer tax breaks and rebates that can help reduce the cost of the system.
Factor in any state or local incentives
When you’re determining the value of your house with solar panels, it’s important to factor in any state or local incentives. For example, in California, there is a net metering program that allows solar panel owners to sell their unused energy back to the grid. This could help reduce your electric bill by lowering your consumption, but not completely replacing it. While in New Jersey, there is a solar renewable energy credit (SREC) program that allows homeowners to sell the SRECs they generate back to utilities.
How do you market your house with solar panels?
When you’re marketing your house with solar panels, there are a few things to keep in mind.
First of all, don’t be surprised if potential buyers try to negotiate during the sale–this is common practice. However, remember that you have the advantage because low electricity rates will make it easier for them to buy your home. You can also brief your realtor on how to handle negotiations so everyone knows what to expect.
If the buyer doesn’t want to take on the contract for the solar panels, you can prepay and sell them separately from the house. This option might work better if you own your home and want to transfer your lease agreement to the new owner.
Finally, remember that homeowners who have solar panels on their roofs can sell or rent them to new owners without losing any money in the process.
What are the benefits of selling homes with solar panels?
The benefits of selling homes with solar panels include the ability to sell a home that is powered by clean, renewable energy. The homeowners can also purchase electricity at lower rates than their current utility company.
Lower Electricity Bills
Installing solar panels in your home can be a great way to reduce your monthly electricity bill. In addition to the initial investment, you can save money each month on your energy costs. Solar panels also offer benefits such as potential savings on monthly bills and being able to take over existing contracts.
Solar panels are low maintenance. The system comes with a warranty that covers parts for several years, but there aren’t many ongoing costs or maintenance concerns beyond that.
Higher Home Equity
Installing solar panels on your home is a great way to increase its equity. According to a study by the National Renewable Energy Laboratory, homes with solar panels sell for more money than those without. In fact, the average selling price of a home with solar panels is $17,000 higher than one without them!
This added value makes sense when you consider all of the benefits of owning solar panels. Not only do they provide clean energy and help reduce your carbon footprint, but they also save you money on your monthly electric bill. Plus, if you ever decide to sell your home, you can expect to recoup some or all of your installation costs in the sale price.
Solar Panels Have a Long Lifespan
Solar panels are a great investment for homeowners. Not only do they provide long-term savings on energy costs, but they also last much longer than other home products. In fact, solar panels can last anywhere from 25 to 30 years or more! This means that homeowners can sell their homes without worrying about finding buyers down the road. Plus, solar panels add value to a home, making it an even more attractive sale. So if you’re thinking of installing solar panels in your home, now is the time!
Questions a Potential Buyer Might Ask When Selling Your House With Solar Panels
What is your current electrical bill each month?
When considering solar panels, a key question prospective buyers will want to be answered is what the current monthly electricity bill is. This information can be helpful in demonstrating to potential buyers how much they could save with solar panels. In some cases, showing utility bills after the panels were installed can help convince people that solar panels are worth the money.
It’s important to get buyers on the same page as far as their potential solar panel saving before they enter into a contract with you or buy your product/service. Data from the same month can be helpful in determining if it’s a good time to buy solar panels since weather variances can affect electricity bills from month to month.
Who owns the solar panels?
If the solar panels are owned by a third party, your potential buyer will need to contact that person before closing on their purchase. The seller can specify who is responsible for any remaining balance owed on the panels.
If financed, who is paying for the solar panels?
If the solar panels are financed, the buyer will want to know who is paying for them. If it’s the seller, they’ll ask when the loan was taken out and what the interest rate is. They’ll also want to know if there are any prepayment penalties. If it’s the buyer, they’ll need to provide information about their credit score and income.
Who manufactured the solar panels?
The potential homebuyer may ask if the solar panels are easy to replace. If they are not, it is important to be able to provide contact information for repairs or replacements in case of need. It is also important to know how long the manufacturer’s warranty lasts and what that warranty covers.
Who installed the panels?
A potential buyer will want to know who installed the panels. If a contractor did it, they should have done an inspection and warranty on the installation. The owner may also be able to provide this information, but will probably have to get in contact with the contractor.
Is there a current warranty?
If the buyer asks about warranties, the seller should give a brief explanation of what the warranty covers. Warranties often last for a certain number of years and cover equipment failures and defects. Sellers should provide details about their solar panel warranty, explaining why and how it expired.
Is there a current service plan?
Solar panel service plans are similar to warranties in that they provide protection for a certain amount of time from start to finish. When you’re buying solar panels, always ask if there is a current service plan and what it covers. The service plan should reassure potential buyers that repair fees may not be an issue and give contact information for the service plan if needed.
How large is the system?
The buyer is asking how many solar panels are installed and what their capacity is in kilowatts. A good number to provide would be the total number of panels, an estimated percentage of energy consumption, and the company that installed them.
Is net metering a possibility?
Net metering is an option that some power companies offer to provide incentives for homes with solar panels. It may be possible that this program isn’t currently available where you live or won’t be available in the future, but it’s a possibility if homeowners want to know about it.
Solar panels are not 100% reliable, so the policy of net metering allows solar users to swap unused energy for credit on their electricity bills. In case your solar panel doesn’t generate enough energy for one month, you can use that credit at a later time when your solar system is working perfectly. Net metering is a policy in most states that allow solar panel owners to trade excess energy they generate back into the grid.