What Happens When I Sell my Home with Solar Panels?

If you've installed solar panels on your roof or property, you'll want to enjoy the benefits of solar energy forever. But sometimes, life gets in the way. What if you're selling a home with solar panels you bought from the PV store, PowerHome? If you know what to do, the process shouldn't be too difficult.

If you bought the solar panels with cash or have paid off your mortgage, it's a simple process. The solar panels will be transferred to the new homeowner's name, and you can use the proceeds from selling your home to buy solar panels at your new residence. A 2015 study by the Lawrence Berkeley Research Laboratory showed that homebuyers want homes with solar energy because they save more money installing solar energy than they would in homes without it.

Selling a home before paying off a solar panel loan is a different story. It's easiest for the seller to avoid any problems by paying off the loan with the proceeds of the sale, as there are no penalties for paying off the loan early. While it is possible to transfer the solar loan to the new homeowner, this requires that the buyer qualifies for the additional costs and is willing to incur them.

If you're planning to move soon, solar panels might not be the right choice for you. But if you're interested in staying put for a while and getting your power from a clean, renewable source, you'll be happy to reduce your dependence on the utility company. Plus, the average homeowner can expect to save tens of thousands of dollars after installing solar panels.

How do solar panels add value to a home?

Solar panels are a clean energy source that don't pollute when they're in use, which helps to reduce carbon emissions and protect the ecosystem. With more and more people becoming environmentally conscious, solar panels are becoming a big focus for many home buyers. Solar panels can also make a house look better and increase its value. In the home buying and selling market, houses with solar panels are more competitive.

Plus, these solar panels can provide clean, renewable power to a home, reducing a home's dependence on traditional electricity and thus lowering the cost of electricity. On average, a 5-kilowatt solar system can save you about $1,400 per year on your electric bill. Just keep in mind that this is only an estimate, and the number can vary a lot depending on the amount of solar radiation and electricity pricing in different areas.

If you're selling a home with a solar system, make sure the buyer knows that a solar system can cut electric bills by a lot. Give them a specific estimate of the annual savings. Or show them the past few years' electric bills to compare the difference in costs before and after the solar installation. You can also describe any government subsidies, tax incentives, or renewable energy credits that can reduce the buyer's initial investment costs.

What happens when a home is traded?

Homes with solar power systems have extra value for homebuyers who are focused on return on investment and have a green, low-carbon mindset. They often require an appraisal of the solar system's value, which can involve some extra steps. Choosing durable solar panels can give sellers an edge in negotiations.

• Buyers can negotiate things like how long the solar system will last, how much it will cost to run, how much it will cost to maintain, and how much they can save on their electricity bills.
• The seller has to tell the buyer everything they need to know about the solar system, including the specs, maintenance history, any existing leases or financing agreements, and so on. If the system is leased, the seller has to let the buyer know about the terms and conditions of the lease agreement.
• If the solar system gives you tax benefits or subsidies, you need to find out if these benefits can be transferred to the buyer or if they'll affect the transaction.
• The buyer might want to have the solar system inspected and serviced before the deal closes to make sure it's in good working order.
• If you own the system, you'll need to transfer all the relevant documents and warranty info to the buyer during the transaction.

In short, solar panels are a green, eco-friendly home improvement that can bring many advantages to a home. In the home buying and selling market, homes with solar panels are more competitive and can successfully add value. As the solar industry continues to grow, it is believed that more families will enjoy the convenience and benefits of solar power in the future.