What You Need to Know Before Selling a Home with Solar Panels

In the past, solar panels were an option primarily for those with a keen interest in eco-friendliness. However, they are no longer considered a "special" feature. According to the Solar Energy Industries Association, solar installations have increased by about 30% annually over the past decade.

This growth is great news for those looking to sell a home with solar panels. But don't just assume that “lower electricity bills will sell the home faster!” The selling process can vary depending on the ownership type and condition of the solar system. Here's how to sell a home with solar panels more effectively.

Selling Strategies Based on Solar Panel Ownership

1. Fully Owned

   
   

   This is the ideal scenario. If the panels are fully owned, the buyer can enjoy the electricity savings without any additional contracts or obligations. For the seller, the process is smoother.

   
   

   ➤ Make sure to organize documents such as purchase receipts, warranties, and electricity savings records to build trust.

2. Leased

   
   

   In this case, the solar company owns the panels, and the lease agreement must be transferred to the buyer. This process can involve credit checks and additional conditions, which may be a burden for some buyers.

3. Power Purchase Agreement (PPA)

   
   

   In this arrangement, the panels are installed, but the homeowner doesn’t own them. Instead, they purchase electricity from the solar company. Similar to leased systems, this requires transferring the contract, which can be complicated in some cases.

   
   

   ➤ It's crucial to clearly explain the contract details and work closely with the solar company in these situations.

Impact of Solar Panels on Home Value

According to SolarReviews.com, homes with solar panels sell for an average of 6.8% more than homes without. However, this number can vary depending on several factors:

• The system’s age and efficiency

• The condition of the panels and maintenance history

• The local energy costs and the community’s perception of solar energy

In areas like California, where renewable energy is actively promoted, the premium can be even higher.

Pre-Sale Preparation

If the solar panel system is in good condition, there’s not much to worry about. However, make sure to check the following:

• Confirm that the system is functioning properly

• Inspect the panels for debris or damage

• If needed, schedule a simple check-up with a professional

• Organize documents (installation contract, warranty, savings records, etc.)

Marketing is Key When Listing

It’s essential to highlight the savings aspect when marketing the home. Solar systems are most attractive because of the electricity bill savings, especially with rising utility costs.

• Show the average savings by organizing recent electricity bills.

• If there’s a battery storage system, emphasize the backup power feature in case of outages.

• Use professional photos or drone shots to showcase the panels.

• Work with a real estate agent who has experience with solar-powered homes.

Conclusion

A home with solar panels is undoubtedly a valuable asset. However, it requires careful preparation and strategy. By understanding the ownership type, contract terms, and system condition, and preparing the right marketing materials and documentation, you can sell your home under better conditions and more quickly.

This spring, make sure your home shines by being fully prepared!