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Homeowners' guide to buying a house with solar panels
As residential solar becomes increasingly popular, many New York homeowners find themselves in a unique situation when it comes time to sell their properties. Understanding how to best market and sell your solar-powered home can make a significant difference in your experience. Here are answers to the most asked questions and tips for successfully selling your house with solar panels.
Before you go, be sure to request your downloadable guide to buying and selling a home with solar.
The value of solar panels in real estate
First, let’s cover what kind of value solar panels add to home values and how to ensure you’re marketing this upgrade accordingly.
How much do solar panels add to your home value?
Homes with solar panels generally sell for more than homes without them. According to Zillow’s Home Value Study, homes with solar panels sold for 4.1% more on average, translating to an additional $9,274 for a median-valued home.
Additionally, environmentally conscious features like solar panels can help homes sell faster. Another Zillow study on home features highlights that houses with eco-friendly features, including solar panels, can sell up to 10 days faster than similar homes without these features.
Is it harder to sell a house with solar panels?
Contrary to what some might believe, selling a house with solar panels isn’t much different than selling a home without them. Still, there are a few things to consider. Primarily, the factors that affect how easy or difficult the sale is are your ownership status and how educated your market is on the benefits (which we’ll get into next!).
Data from Rocket Homes shows that homes with solar panels spent 13.3% less time on the market than homes without solar power. This statistic indicates that buyers, more often than not, understand the value of solar panels and see them as a selling point.
The bottom line? If you’re selling a house with solar panels, market this feature effectively to help attract more prospective buyers and help it sell quicker than similar homes.
Communicating the benefits of solar to prospective buyers
For buyers, purchasing a home with solar panels offers several advantages that you should work with your realtor to effectively communicate, including:
Energy savings:
Depending on the size of your array, you may be covering most, if not all, of your home’s annual energy needs. With electricity rates expected to continue increasing (National Grid proposed a 15% increase in 2025!), providing potential buyers with your past electric bills to showcase these savings can be very persuasive in selling your home with solar panels.
Environmental impact:
A home with solar panels is especially attractive for environmentally conscious buyers. The environmental impact of our average residential solar array (11.2 kW) is huge, and is the equivalent of:
- Over 22,000 gas-powered miles avoided
- More than 550,000 smartphones charged
- 374 trash bags recycled instead of sent to landfill
You can calculate your home’s eco-impact using the EPA’s Greenhouse Gas Equivalencies Calculator to showcase to prospective buyers. Here’s what to do!
- Take your system size Kilowatt (kW) (ex. 11.52kW, which can be found in your owner’s manual) and multiply it by 1,100. This will give you the Kilowatt-hours (kWh) of your system (ex. 11.52 kW x 1100 = 12672 kWh).
- Enter the kWh number you just calculated into the “Amount” box and select the Unit “Kilowatt-hours avoided”. Then click “Convert data” to view your home’s eco-impact!
Increased property value:
As mentioned, solar panels can add value to the home, benefiting the buyer in the long term. Make sure you emphasize this as much as you would a kitchen upgrade or a finished basement. It’s a major home improvement project that has a big impact!
For even more on this topic, review our guide to buying a home with solar.
Preparing to sell a home with solar
1. Documentation and presentation
- Provide savings details: Share your electric bills to demonstrate how much your solar array saves in energy costs, along with this net metering overview to help explain this process to new solar owners. These details are especially important during the sales process!
- Offer complete documentation for your solar array: To ensure a smooth transition, collect all available documentation for your solar array, which may include your owner’s manual, warranties, and installer contact information. Having this readily available will help facilitate the seamless ownership transfer.
- Highlight any completed maintenance or updates made: Before solar is installed, roof replacements and electrical upgrades are often made. If you made any electrical upgrades or replaced your roof before installing solar panels, mention these to prospective buyers and reassure them that the roof and panels will require minimal maintenance.
2. Working with your realtor
Ensure your realtor understands the value of your solar system and can articulate this to potential buyers. They should know the benefits of buying a home with solar and how to present these to appraisers and buyers. If they are unfamiliar, GreenSpark can help! Reach out with your questions to hello@greensparksolar.com.
Also, communicate the ownership status of your solar array and how you would like to handle the transfer with prospective buyers. There will be more guidance on this topic next!
3. Transferring ownership of your solar panels
Paid off solar panels
The most straightforward scenario is when the solar panels are fully paid off. In this case, the panels add direct value to the property, and you can list your home at a higher price to reflect this.
Financed solar panels
If you have financed your solar panels, you will likely need to pay off the loan at or before closing. Mortgage companies generally require this to ensure the new homeowner isn’t taking on additional debt.
Solar lease or Power Purchase Agreement (PPA)
Selling a home with a solar lease or PPA can be more complicated. Here are the options:
- Prepayment: The seller can prepay the remainder of the contract, allowing the buyer to assume the solar system without additional payments.
- Assignment: The buyer takes over the payments and responsibilities of the contract.
- Purchase: The seller can purchase the solar panels, so the buyer doesn’t have to deal with the lease or PPA.
Detailing the transfer of ownership is crucial in selling a house with solar panels. Your ownership status will dictate any additional homework you’ll need to do upfront pre-sale and how the sale will need to be negotiated and then transferred to the new owner.
Download our guide to buying and selling solar.
Selling a house with solar panels involves several steps, but it can be a smooth process with the right approach. By understanding the value of your solar system, preparing comprehensive documentation, and working with a knowledgeable realtor, you can highlight the benefits to prospective buyers and potentially sell your home faster and for a higher price. Solar panels contribute to a greener planet and add tangible value to your property.
Download our guide to buying and selling solar by completing the form below.
