Is It Harder To Sell A Home With Solar Panels?
Investing in a solar energy system is a great move for homeowners who want to not only generate clean energy, but would also like to lower electricity bills, and protect themselves from rising energy costs. But some homeowners knowing they may sell the house in the near future may hesitate in their decision to go solar, unsure if it is worth it when they put their home on the market. Is it really harder to sell a home with solar?
In the early days of solar, homebuyers didn’t understand all the benefits of solar. Most worried about maintenance, and repairs about how long the warranty is and what it covers. They would shy away because, hey, what happens when the panels reach the end of their life and have to be removed? Homebuyers are now more educated about solar technology, and almost everyone knows someone who has gone solar. They have a friend, neighbor, or co-worker who can vouch for how stress-free a home solar system really is.
Homes With Solar Are In Demand
In truth, adding solar panels can significantly increase a home’s resale value, and in some markets like sunny Southern California, it makes the home more attractive to potential buyers. The multiple listing service (MLS) now includes “greenfields” for real estate agents to list a home’s environmentally-friendly features, such as solar, energy efficiency, or LEED certification in the home’s profile. Buyers are obviously interested in these categories as homes with a solar panel system on average sell for 4.1% more than homes without according to a recent report by Zillow.
Navigating The Solar Loan
When homeowners purchase a system with a solar loan, they get to spread out the cost over time, while enjoying access to benefits that come with purchasing and owning a solar power system, like the Federal Solar Tax Credit. If it’s financed through a secured loan, such as a home equity loan, the balance will need to be paid off before the home is sold. When an unsecured loan (one not tied to the property), is used to finance solar the home can be sold before the loan is paid off, however, the loan follows the seller.
Potential homebuyers are willing to pay more for a system they’ll own versus a system that is leased. So when you’ve paid cash for your system and own your solar panels outright, the more likely it is to get more money for your home and enjoy a streamlined sales process.
Selling a Home With Leased Solar Panels
Homes with a solar lease can pose some challenges when being sold, so here are a few factors to consider before listing the property. When leases are used, there are two ways of handling the sale of the home. The first option is to pay off the rest of the lease. With this option, the seller owns the solar system before the sale and the home commands a higher selling price. The lease could be transferred to the new homeowner, and your leasing company will help you do just that. However, you should be aware that some home buyers may not want to take over a solar lease.
No matter if you’re planning to sell your home in a few years or not, solar is a smart choice with plenty of benefits beyond saving money on your electric bill. If you’ve been considering solar for your home, or have questions about financing options or the Federal Tax Credits, please call or text us. Our experienced Energy Experts are available to answer all your solar and home battery questions. (951) 678-7733