Top Realtor Tips for Selling Your Home with Solar Panels

According to data from the Energy Information Administration, there are over 4 million homes in the U.S. that have solar panels installed. Most of the time, homeowners invest in solar panels with the intention to be in their house for the long haul, as they want to enjoy the full 25-year benefits of their installation, but this can change, as homeowners don’t necessarily see the savings benefits until 10-12 years after installation.

The process of selling your home with solar panels can range from easy to difficult, depending on a few different factors. In some cases, having solar panels could help boost buyer interest and lead to higher price bids!

We asked a realtor for their best advice when it comes to selling your home with solar panels, so you can make the process as seamless as possible.

Top 6 realtor tips for selling your solar home

We spoke with Kristen Sutton, a real estate agent at Your Castle Real Estate in Colorado, to get first-hand insights into selling homes with solar panels. Here are six top tips from real estate agents to make selling your solar-powered home easier. 

1. Find an agent with experience selling homes with solar panels

Not every agent can provide the expertise or knowledge needed to navigate the complexities of residential solar. When you work with someone who’s familiar with solar, you’re not only getting someone who knows the housing market, you’re also getting someone who can market your home and guide you through the process of selling it. 

Whether you’re buying or selling a home with solar panels, working with an experienced agent can make all the difference. They’ll provide you with the right tools for getting ready to put your home on the market, ensuring no time is wasted.

2. Understand how to transfer ownership of your system

Selling a home with solar panels will require you to transfer the ownership of your system to the person who purchases your home. You might also need to transfer over solar warranties, system monitoring accounts, or incentives to the buyer as well. 

As the original owner, you’ll be responsible for initiating the transfer by contacting the solar company that installed the panels. From there, the buyer will provide their information to complete the transfer. 

Keep in mind that this process can vary based on the solar company and can take a bit of time. Colorado real estate agent Kristen Sutton spoke about her experience working with solar homes.

“Most solar companies move very slowly, and getting things transferred from one person to another can take weeks,” Sutton said. “It typically is something that needs to be started in the first few days of getting a home under contract so that we have the max amount of time to get transferred before closing.”

3. Pay off solar loans instead of trying to pass them to the buyer

If you still have a balance left on your solar loan, it’s best to pay it off before the sale of your home is complete. Having an owned, fully paid off solar panel system is the best scenario when it comes to selling a home with solar panels. Buyers know that they don’t have to take on any additional payments and can just enjoy everything solar power has to offer.

Some solar loans might be transferable, but it can be difficult to find a buyer who wants to take over your debt. The entire selling process will go much smoother if you pay off the outstanding balance on your loan either before you put the home on the market or by using money from the home sale. 

“Unless we’re in a strong seller’s market, I think it’s something buyers will bring up every time as a drawback,” Sutton said. “If they’re deciding between two similar properties and yours comes with a $15,000 to $20,000 additional loan, your property suddenly becomes a whole lot less attractive.”

Keep in mind that the process works differently for solar panels financed through solar leases and PPAs. Buying out these third-party financing agreements isn’t typically practical, as the costs to end the contract are extremely high. You’ll have to find a buyer willing to take over the contract, which can be difficult. 

4. Amenities like solar panels and battery storage can increase buyer interest

Having energy-efficient home upgrades can be a huge selling point for your home, especially as homebuyers’ interest in low utility bills continues to increase. According to a study by the National Association of Realtors, 57% of respondents said that promoting energy efficiency was very or somewhat valuable. 

Different amenities that can be seen as desirable include:

• Solar panels

• Solar energy storage

• Energy-efficient appliances

• EV chargers

These types of upgrades could boost buyer interest and, in some cases, increase your home’s value, depending on the upgrade, where you’re located, and the quality of the installation. Energy-efficient features can help make your home a move-in-ready listing instead of a fixer-upper. 

For example, buyers in Connecticut or California, where electric rates are sky-high, might be willing to pay more for a home with solar panels because they’ll provide relief on expensive utility bills. 

5. Low energy costs can help you market your home

Solar panels can save an average of $1,500 per year on electricity bills. With electricity prices climbing, buyers could be seeking out a way to combat these costs. This is a huge way to market your home, but it can all depend on the circumstances surrounding your panels. 

“Buyers find the lower electricity bills attractive, but if they’re stuck paying $100-$250 per month for the lease, that ends up eating up the savings on electricity bills,” Sutton said. 

6. Highlighting environmental benefits can boost your home’s appeal

Many homebuyers are beginning to prioritize sustainability. According to the SolarReviews Gen Z and Sustainability report, which surveyed 400 individuals aged 18 to 30, 94.5% of respondents expressed a level of concern for the environment and climate change, with over 44% reporting high levels of concern.

Furthermore, 88% of respondents reported integrating sustainable and eco-friendly practices into their lifestyle at least once a month. Solar panels reduce reliance on fossil fuels and lower carbon footprints, all while promoting energy independence from the grid.

With the high upfront cost of solar being a significant barrier to getting them, buying a home with a system already installed could be a helpful solution and make it easier for you to find interested buyers.

How do solar panels affect the sale of your home?

One of the greatest benefits of installing solar panels is that they have the potential to raise the value of your home. In a 2024 Zillow Home Value study conducted by the experts at SolarReviews,it was found that homes with solar panels were selling for 6.8% more on average than homes without solar. 

Since solar panels are a home energy upgrade with the ability to lower your electricity bills and reduce your carbon footprint, they can be an attractive feature to buyers of all types, from those looking for lower bills to those interested in sustainability.

However, even though solar panels have several advantages, they could potentially have a negative effect on selling your home. Solar panels financed through solar leases or PPAs can make prospective buyers hesitate, as they don’t want to take on someone else’s monthly payments. Also, fears of potential solar maintenance and repairs can be a turn-off for some.