When it comes to installing solar panels, opinions vary widely. Some people—especially solar salespeople—claim that panels will significantly boost your home’s value and saleability. Real estate agents, however, are often more measured in their enthusiasm.
The truth is, the impact solar panels have on resale value depends on a variety of factors, including your local market and the specifics of your home. While adding solar panels might be the right choice for some homeowners, it’s important to understand how they can affect the future saleability of your property from a real estate perspective.
Before moving forward with installing solar panels, here are six important things to consider that could impact your home’s resale potential:
1) Know Your Market
In some areas, solar panels are seen as a major plus for buyers, especially in places with high energy costs or strong eco-conscious communities. In these markets, solar panels could potentially add value to your home or even make it more saleable. However, in other areas where energy costs are lower or buyers aren’t as focused on sustainability, solar panels may not carry the same weight.
Understanding your market and its view on solar energy is essential before installing a system on your house. An easy way to do that is to simply ask your local real estate agent for their insight into the local buyer pool.
2) Some Buyers Won’t Be Interested in Your Home
No matter how receptive the market is overall in your area, there are going to be buyers who won’t be interested in buying your home if it has solar panels. It’s like swimming pools… Some people absolutely want a house with one, some are indifferent, and others won’t even consider homes with one.
Does that mean nobody should install a pool or solar panels in order to appeal to every potential buyer when the time comes to sell? Of course not! Just be aware that it might impact the demand for your house when it comes time to sell, especially if you plan on selling in the near future.
3) Focus on Curb Appeal
When installing solar panels, it’s ideal if they’re relatively out of sight. But no matter where they are, make sure they look as visually appealing as possible. Poorly placed panels or visible wiring can detract from your home’s exterior and hurt its overall curb appeal.
Unfortunately, it’s not always possible to place solar panels where they can’t be seen, depending upon the direction of the house and sunlight. So make sure your installer shows you a layout of the panels before installing, and try to have them arranged in a way that won’t be distracting or unsightly.
4) Own, Don’t Lease (If Possible)
One of the most significant considerations when installing solar panels is whether to buy or lease the system. Buyers are generally more interested in homes with fully owned solar panels, as they offer greater long-term value. Leased systems, on the other hand, can complicate the sale process. A potential buyer might not want to take on the lease payments, or worse, may not be able to legally remove the system if the terms of the contract are restrictive.
If you do choose to lease, make sure your contract allows for an easy transition for future owners.
5) Check for Transferability
If you’ve taken advantage of local incentives, rebates, or net metering, it’s important to ensure that these benefits are transferable to the next homeowner. Without this transferability, the new owner may not enjoy the same savings or financial incentives that you did.
Be clear about how the benefits of your solar system can be passed on during the sale, as this can be a key selling point for potential buyers.
6) Be Realistic About the ROI
Although solar panels can offer savings on energy bills and may increase your home’s value, they don’t always provide a full return on investment.
Research comparable homes in your area to determine how much value solar panels have actually added to those properties. In most cases, the increase in resale value is only a portion of the cost of installation, so it’s important to manage your expectations regarding the return on investment.