Power up profits when selling your solar-powered home

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Published Date 3/28/2025

When solar panels first appeared on the roofs or in the backyards of American homes, it was clear only upscale homeowners could afford them. Now they routinely appear even in average suburban neighborhoods. These expansive panels of wired, reflective glass have transformed from a niche eco-friendly feature to a mainstream home addition, with installations growing nearly 30% over the past decade according to the Solar Energy Industries Association.

Realtor.com’s Allaire Conte says this surge is advantageous for sellers of solar-equipped homes, as these properties typically sell faster and for more money, though success depends on location and how the panels were purchased.

Conte points out how, when preparing to sell a solar-equipped home, financing arrangements significantly impact the process. “Homeowners who own their systems outright are best positioned for a smooth transaction,” she says. “Buyers can immediately assume ownership and benefit from energy savings without additional steps.” To facilitate this transition, sellers should collect all essential documentation including purchase receipts, warranty information, and energy savings records.

Leased solar systems present a few wrinkles, however. Since the lender owns the system, the lease must be transferred to the new homeowners, requiring lender approval. This often involves credit checks and additional scrutiny that can deter potential buyers who are already navigating mortgage approvals.

Power purchase agreements (PPAs) create similar challenges. Under a PPA, homeowners buy electricity generated by their provider at rates typically lower than standard utilities, but don't own the panels. But the transfer of a PPA involves meeting specific credit approval criteria and coordinating with the solar provider.

Despite these potential hurdles, however, solar panels generally boost home values, according to Conte. “Research indicates that solar-equipped homes sell for approximately 6.8% more than comparable properties without solar installations.” However, several factors influence this premium.

The age, efficiency, and maintenance condition of the system affect its perceived value. Larger, more efficient systems appeal more to buyers because they offer greater energy savings. Newer and well-maintained panels naturally add more value than older or less efficient alternatives.

Regional perspectives on renewable energy also play a role. In areas where green energy is highly valued or incentivized, such as California, solar-equipped homes may command higher premiums. But even in areas where solar is not as common, sellers can maximize value by educating their home appraiser about their system, providing comprehensive documentation on installation, warranties, financing arrangements, and energy savings data. This can help an appraiser assess an accurate, more enhanced value.

If you are a solar user ready to place your home on the market, be sure to compile your original contract, installer contact information, system diagrams, equipment information, and energy production history. And if there are any operating issues, address them before listing the property. Damaged systems can deter buyers instead of attract them.

While a professional inspection isn't mandatory, it can provide peace of mind about the system’s condition. Of course, emphasizing energy bill savings is crucial as electricity rates continue to rise. If the system includes battery storage, highlighting backup power capabilities can be particularly attractive in areas prone to outages. Cite energy cost savings, environmental advantages, and long-term financial benefits as well. As for visual marketing, your real estate staging professional or Realtor experienced with solar-equipped homes can showcase panels from optimal photo angles — especially drone footage to showcase the installation.

Realtor, TBWS

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