If you’ve installed a solar system on your home or are planning to install a solar system you may be wondering what you can expect when it comes time to sell that house.
Fortunately, selling a home with solar panels isn’t as difficult as many people think. In most cases, having solar panels on your home increases your home’s value and makes it more attractive to buyers.
However, there are several considerations you need to understand when your home includes a solar power system.
Home Value
The U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) conducted the largest-ever study of solar homes from 2002 to 2013 to determine how the addition of solar power systems impacts home buyers. It found that buyers were willing on average to pay $15,000 more for homes with solar panels than comparable homes without them.
Another study by the National Renewable Energy Laboratory performed in 2008 concluded that home value increases by $20 for every $1 reduction in yearly utility bills. So a solar energy system that saves a homeowner $1,000 per year can add a value of $20,000.
Factors to Consider
Age of the Solar System - Solar systems usually have a life of 25 to 35 years, possibly 40 years if they’re in optimal condition. So, homes with newer solar systems will provide more years of future use, and hence greater value, than a house with a system that’s 10 or more years old.
Solar Panel Ownership - If a homeowner owns their solar panels outright, they have the option to include the panels in their home sale. This is the most straightforward transfer of ownership and the best low-cost, high-profit option for the seller.
However, if the Solar Panels are leased, the situation is more complicated. Leased solar systems can be transferred to the buyer with a buyout or a transfer. If it is financially practical, it would be better for the seller to buyout the lease prior to the sale. If you choose to transfer the lease, then the lessor must agree, and the buyer must qualify to assume the lease.
If the Solar Power Systems has been financed with a loan, typically the loan can be transferred to the buyer. However, once again, the approval of the financial institution will be required, and the buyer will need to have satisfactory credit.
Real Estate Agents – Not all real estate agents understand the impact of solar panels on the value of a home. It is important to choose a selling agent that is well-versed in the benefits of solar power. It may be necessary to educate the buyers agent on these benefits. These benefits fall into two categories: Financial & Environmental.
Financial Benefits
· Reduced energy bills: Solar panels generate the electricity resulting in a smaller electricity bill.
· Protection from rising energy costs: A solar power system helps shield the buyer from future price increases.
· Increased home value: If 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.
Environmental Benefits
· 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 gases, and reduces your carbon footprint.
· Reduced waste: Solar panels are durable, and they can last 25+ years with low cleaning and maintenance needs. In addition, most solar panels can be recycled.
Selling your home with a solar power system does not need to be a complicated process. This guide is intended to help you understand the factors and steps required so you can maximize your return on your investment.
As a seller, you need to be clear on the age and ownership status of your solar panels. By choosing a real estate agent familiar with selling homes with solar power systems who can clearly communicate the benefits provided by solar panel ownership to prospective buyers you can increase the likelihood of a smooth sale.
SoL Energy of Carbondale is your one stop provider that can manage and install your project from design and build to operation. SoL Energy has been installing custom, solar systems and building trusted relationships with home and business owners in the Roaring Fork Valley since 2003. Installing a solar energy system on your home is a good decision for your family, your wallet, and the environment; and SoL Energy will make sure you get the system you need supported by the expertise you expect and the customer service you deserve.
For additional information, check the following links:
https://newscenter.lbl.gov/2015/01/13/berkeley-lab-illuminates-price-premiums-u-s-solar-home-sales/
https://www.zillow.com/research/solar-panels-house-sell-more-23798/
