What Happens When You Sell a House with Solar Panels?

Prefer to read - or get the written info? See this episode in writing on our blog.

The complicated relationship between solar panels and home sales takes center stage in this practical, eye-opening episode. When those sleek energy-savers adorning your roof become part of your home sale equation, the results can be surprising—and not always in the way solar companies might suggest.

We dive into revealing research showing owned solar systems can boost home values by 4.1-6.9% and help properties sell up to 20% faster. But there's a critical distinction between owned systems and those with outstanding loans or leases that many homeowners don't discover until they're deep in the selling process. With roughly 20% of sellers reporting buyers walking away due to solar lease complications, understanding these dynamics before listing is essential.

The episode features real insights from agents nationwide who consistently report that solar loans and leases narrow the buyer pool significantly. One Florida property languished on the market while identical homes sold quickly—the only difference being its solar panel loan. Another seller with a $38,000 solar obligation ended up offering to pay half just to close the deal. These aren't isolated incidents but part of a pattern every solar homeowner should understand before putting up that "For Sale" sign.

For homeowners contemplating selling, we provide actionable strategies: gathering comprehensive documentation early, understanding payoff options, setting realistic price expectations, and working with knowledgeable agents. Whether you're a homeowner with solar panels or considering installing them, this episode equips you with the information needed to navigate this increasingly common real estate challenge. Have questions or need personalized advice about selling a solar-equipped home? Reach out at 828-333-4483 or start with a free home valuation at allstarhomevalue.com.

Chapters

• 0:33 Introduction to Solar Home Sales
• 1:21 Do Solar Panels Add Value?
• 2:56 Challenges with Leased Systems
• 5:06 Real Agent Experiences Nationwide
• 6:46 Practical Advice for Sellers
• 8:29 Resources and Contact Information

Transcript

Speaker 0: 0:17

Hey guys, it's Rowena Patton, your friend in real estate, here with what every homeowner needs to know about selling your home with solar panels. So, whether you're an agent or a real estate agent or a homeowner, really think about these things, because it can be obviously an incredibly smart move for the environment and it's kind of cool, right. You see these people coming around with solar panels and you could get your electric bill free and your monthly utility bill. It just gets paid for by these panels on your roof, especially if you're in a sunnier climate. I'm from England, so what do I know about these things? But I've been here for 29 years, so I guess it counts right.

Speaker 0: 0:58

So when it comes time to sell your home, it can get a little bit complicated. So some buyers love the idea of energy efficiency. Some are hesitant, especially when and which is usually the case right when a solar loan or lease is involved. So if you're planning to sell a home with solar panels, here's what you need to know and this is based on national research and real stories from agents around the country Things like do solar and these are the most common questions do solar panels add value to my home? So it depends If you own them outright and, depending on how old they are, like anything else, you're likely to see a bump in value. Here's what the research says. It's not always right. Make sure you do your research and you might be listening to this later on.

Speaker 0: 1:45

A 2025 solar review study found that homes with owned that's you know, people who actually own their solar panels sold for an average of 6.9% more, or about $25,000 to $29,000 in added value. More or about $25,000 to $29,000 in added value. Zillow's national research in 2019 showed a 4.1% increase. So obviously that's a lot less than the solar review study. We need to look into that solar review study a little bit more to see whether it's paid for by the solar manufacturers and leasing companies. So the owned systems do tend to help homes sell faster up to 20% quicker.

Speaker 0: 2:26

I guess if you're comparing between house A and house B, you know with and without solar panels, then why wouldn't you? Especially if they were around the same price? So where it comes into a challenge is the lease and the loan. So lease systems or those with outstanding solar loans can slow down and sometimes even derail your home sale, like anything else that's out of the ordinary on your house. So, looking at the research industry data, roughly 20% of sellers with lease systems say buyers walked away due to the added complexity. Freddie Mac guidelines confirm that lease solar systems do not contribute to the appraised value. Well, that's interesting. Why are they selling for more in that case? That could have come from when we were getting multiple offers and when the housing market in most of the country was geared towards the sellers. In most of the country now it's geared towards the buyers.

Speaker 0: 3:23

I've done lots of shows on that that you can listen to or give us a call. It's Rowena Patton here at 828-333-4483. Give us a call for more info. Of course, you can get the full market value offer on your home, whether or not you've got solar panels, at cashcpocom. So most buyers, when you're selling, are reluctant to assume the debt, especially if they're already stretching to afford the home, which we know from the affordability crisis.

Speaker 0: 3:52

And you know Nick Gurley, the CEO of Reventure, very well-respected guy with lots of figures said we're in the worst housing bubble ever in history due to the affordability crisis. That means how many times the median income does it take to buy a house? It used to be two or three times across most of the country Now in LA, for example, it's nine times. In Asheville, north Carolina, it's over 10 times. In most of Western North Carolina it's seven or eight times. So it's still a lot of years income to buy a house. So as that has become unaffordable, you know. That's to my last point about buyers being reluctant to assume the debt, especially if they're stretching to afford the home. Obviously they are if they're in an area where that kind of thing is going on, where there's an affordability gap.

Speaker 0: 4:42

So one I read a post this morning. It was very interesting. I'm not giving anybody a shout out just because I haven't asked them for permission to so. Reach out agents and I'm always happy to help promote you all over the country here. So one agent said most of the time sellers end up using their equity to pay off the system at closing. Buyers don't want somebody else's loan. So these are real estate agents saying across the country a home in Florida with the same floor plan sat on the market far longer than others. The only difference it had solar panels with a remaining loan. That makes sense, right? Another person said in my market sellers typically have to pay off the panels at closing. Buyers don't want the debt, even if the energy savings are strong.

Speaker 0: 5:29

Somebody else said lease systems almost always shrink the buy pool Again. That's obvious, right? You need a very specific buyer willing to take that on. One client had a $38,000 solar loan. The seller ended up offering to buy down half the loan, just to get the deal done after 20 showings. This doesn't surprise me at all. Another person said very sage advice here. If you have solar, get every piece of documentation together early Warranties, utilities bills, loan terms and the systems age. You'll need it for all the appraisers and buyers. And you can read this, by the way, if you want to read it separately and see pictures on there as well.

Speaker 0: 6:11

Cpoexpertscom forward slash blog. Cpo for certified pre-owned. Cpoexpertscom forward slash blog. If you prefer to read it, I get it. Not everybody wants to listen to me blabbing away.

Speaker 0: 6:28

So what does that mean of all of these things? So what sellers need to do? So if you're thinking about selling your home and you've got this going on and you're selling your solar equipped home, here's how to get ahead of it Clarify ownership. Are your panels owned, outright, leased or financed? Get the documentation together, include the solar agreement warranty, utility savings report, all of that stuff. There's a thing called the PV value report, pvvaluecom. Again, all of these links are at cpoexpertscom with an S forward slash blog. You can read it on there and lots of other things to help you sell your house, to Decide on a payoff strategy.

Speaker 0: 7:10

So what's that payoff strategy going to be? Price realistically Don't expect dollar for dollar return. Same thing with the kitchen guys. If you spent $100,000 on a kitchen, especially in a $500,000 house, you're not going to get a dollar for dollar return. How much are you going to get? That depends on what the house is actually worth, what neighborhood it's in, whether you're in a seller's or a buyer's market. I can help you with all of that. If you want a 30 data point report on what your market is doing on any zip code in the usa, give us a call with your address and that is 828-333-4483. This is is Rowena Patton at All Star Powerhouse brokered by EXP Realty, now a national team.

Speaker 0: 7:54

Solar panels can be a great selling point, but only when you know how to handle them in the sale and you need an agent that knows what they're doing with this. Get prepared up front, get informed. It'll save you time, avoid these surprises and just giving you a much better shot at getting full market value for your home. So if you're thinking of selling of solar panels or the least owned somewhere in between, reach out. I can walk you through the exact steps and find new agents that are just trained at a whole other level. If you just want to start off with your home value, go to allstarhomevaluecom A-L-L-S-T-A-R. Homevaluecom allstarhomevaluecom. This has been Rowena Patton on the Real Estate News Radio Show and I will see you next time.