What Happens When You Sell a House with Solar Panels?

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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.

Episode Transcript

Speaker 0 (00:00):
Hey guys, it's Rowena Patton, your friend in real
estate, here with what everyhomeowner needs to know about
selling your home with solarpanels.
So, whether you're an agent ora real estate agent or a
homeowner, really think aboutthese things, because it can be
obviously an incredibly smartmove for the environment and

(00:21):
it's kind of cool, right.
You see these people comingaround with solar panels and you
could get your electric billfree and your monthly utility
bill.
It just gets paid for by thesepanels on your roof, especially
if you're in a sunnier climate.
I'm from England, so what do Iknow about these things?
But I've been here for 29 years, so I guess it counts right.

(00:41):
So when it comes time to sellyour home, it can get a little
bit complicated.
So some buyers love the idea ofenergy efficiency.
Some are hesitant, especiallywhen and which is usually the
case right when a solar loan orlease is involved.
So if you're planning to sell ahome with solar panels, here's

(01:02):
what you need to know and thisis based on national research
and real stories from agentsaround the country Things like
do solar and these are the mostcommon questions do solar panels
add value to my home?
So it depends If you own themoutright 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.

(01:23):
It's not always right.
Make sure you do your researchand you might be listening to
this later on.
A 2025 solar review study foundthat homes with owned that's you
know, people who actually owntheir solar panels sold for an
average of 6.9% more, or about$25,000 to $29,000 in added

(01:44):
value.
More or about $25,000 to$29,000 in added value.
Zillow's national research in2019 showed a 4.1% increase.
So obviously that's a lot lessthan the solar review study.
We need to look into that solarreview study a little bit more
to see whether it's paid for bythe solar manufacturers and
leasing companies.
So the owned systems do tend tohelp homes sell faster up to

(02:08):
20% quicker.
I guess if you're comparingbetween house A and house B, you
know with and without solarpanels, then why wouldn't you?
Especially if they were aroundthe same price?
So where it comes into achallenge is the lease and the
loan.
So lease systems or those withoutstanding solar loans can slow
down and sometimes even derailyour home sale, like anything

(02:32):
else that's out of the ordinaryon your house.
So, looking at the researchindustry data, roughly 20% of
sellers with lease systems saybuyers walked away due to the
added complexity.
Freddie Mac guidelines confirmthat lease solar systems do not
contribute to the appraisedvalue.
Well, that's interesting.

(02:53):
Why are they selling for morein that case?
That could have come from whenwe were getting multiple offers
and when the housing market inmost of the country was geared
towards the sellers.
In most of the country now it'sgeared towards the buyers.
I've done lots of shows on thatthat you can listen to or give
us a call.
It's Rowena Patton here at828-333-4483.

(03:14):
Give us a call for more info.
Of course, you can get the fullmarket value offer on your home
, whether or not you've gotsolar panels, at cashcpocom.
So most buyers, when you'reselling, are reluctant to assume
the debt, especially if they'realready stretching to afford
the home, which we know from theaffordability crisis.

(03:35):
And you know Nick Gurley, theCEO of Reventure, very
well-respected guy with lots offigures said we're in the worst
housing bubble ever in historydue to the affordability crisis.
That means how many times themedian income does it take to
buy a house?
It used to be two or threetimes across most of the country
Now in LA, for example, it'snine times.

(03:58):
In Asheville, north Carolina,it's over 10 times.
In most of Western NorthCarolina it's seven or eight
times.
So it's still a lot of yearsincome to buy a house.
So as that has becomeunaffordable, you know.
That's to my last point aboutbuyers being reluctant to assume
the debt, especially if they'restretching to afford the home.
Obviously they are if they'rein an area where that kind of

(04:22):
thing is going on, where there'san affordability gap.
So one I read a post thismorning.
It was very interesting.
I'm not giving anybody a shoutout just because I haven't asked
them for permission to so.
Reach out agents and I'm alwayshappy to help promote you all
over the country here.
So one agent said most of thetime sellers end up using their

(04:43):
equity to pay off the system atclosing.
Buyers don't want somebodyelse's loan.
So these are real estate agentssaying across the country a
home in Florida with the samefloor plan sat on the market far
longer than others.
The only difference it hadsolar panels with a remaining
loan.
That makes sense, right?
Another person said in mymarket sellers typically have to

(05:04):
pay off the panels at closing.
Buyers don't want the debt,even if the energy savings are
strong.
Somebody else said lease systemsalmost always shrink the buy
pool Again.
That's obvious, right?
You need a very specific buyerwilling to take that on.
One client had a $38,000 solarloan.
The seller ended up offering tobuy down half the loan, just to

(05:27):
get the deal done after 20showings.
This doesn't surprise me at all.
Another person said very sageadvice here.
If you have solar, get everypiece of documentation together
early Warranties, utilitiesbills, loan terms and the
systems age.
You'll need it for all theappraisers and buyers.
And you can read this, by theway, if you want to read it

(05:51):
separately and see pictures onthere as well.
Cpoexpertscom forward slash blog.
Cpo for certified pre-owned.
Cpoexpertscom forward slashblog.
If you prefer to read it, I getit.
Not everybody wants to listento me blabbing away.

(06:11):
So what does that mean of all ofthese things?
So what sellers need to do?
So if you're thinking aboutselling your home and you've got
this going on and you'reselling your solar equipped home
, here's how to get ahead of itClarify ownership.
Are your panels owned, outright, leased or financed?
Get the documentation together,include the solar agreement

(06:31):
warranty, utility savings report, all of that stuff.
There's a thing called the PVvalue report, pvvaluecom.
Again, all of these links areat cpoexpertscom with an S
forward slash blog.
You can read it on there andlots of other things to help you
sell your house, to Decide on apayoff strategy.

(06:53):
So what's that payoff strategygoing to be?
Price realistically Don'texpect dollar for dollar return.
Same thing with the kitchenguys.
If you spent $100,000 on akitchen, especially in a
$500,000 house, you're not goingto get a dollar for dollar
return.
How much are you going to get?
That depends on what the houseis actually worth, what
neighborhood it's in, whetheryou're in a seller's or a

(07:15):
buyer's market.
I can help you with all of that.
If you want a 30 data pointreport 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 AllStar Powerhouse brokered by EXP
Realty, now a national team.

(07:37):
Solar panels can be a greatselling point, but only when you
know how to handle them in thesale and you need an agent that
knows what they're doing withthis.
Get prepared up front, getinformed.
It'll save you time, avoidthese surprises and just giving
you a much better shot atgetting full market value for
your home.
So if you're thinking ofselling of solar panels or the

(07:58):
least owned somewhere in between, reach out.
I can walk you through theexact steps and find new agents
that are just trained at a wholeother level.
If you just want to start offwith your home value, go to
allstarhomevaluecomA-L-L-S-T-A-R.
Homevaluecomallstarhomevaluecom.
This has been Rowena Patton onthe Real Estate News Radio Show

(08:21):
and I will see you next time.