*Data from the U.S. Energy Information Administration (EIA).
Energy-efficient homes in places such as Orlando or San Francisco hold more value since the average monthly electricity costs are higher. Homebuyers benefit from long-term savings and sellers profit from the higher market value of their solar-powered homes.
Local Solar Market
Many states offer tax incentives to encourage homeowners to convert to solar energy. These make the transition to solar energy more affordable and help the state expand its solar potential. Solar-powered homes in solar-friendly states will sell at a higher market value than in states with little or no solar power growth.
According to the Solar Energy Industries Association (SEIA), the following states have the best solar markets:
Owned vs. Leased Solar System
Homeowners must ensure they can legally transfer their solar system to the new owners when selling their home. Most solar companies have several payment options. Two options — full payment and solar leasing — give homeowners the greatest flexibility when selling a solar-powered home.
Full payment is the best way to guarantee a smooth transition for the new buyer. This requires a large up-front investment from the original owner to own their system, but makes it easy to include the system with the home sale.
With solar leases, the solar company retains ownership of the system. Solar leasing transfers require either a lease buyout or a transfer. With a buyout, the owner pays off the remaining balance for the system to close the lease. This allows the home buyer to start a new lease with the solar company. Depending on the time remaining on the lease, this could result in a large lump sum payment.
With a lease transfer, the current lease moves from the buyer to the new owner. The new owner takes over the lease and any remaining time on the contract. Most companies require a credit check to ensure the new owner can take over the lease. This could delay your home sale if potential buyers don’t meet the company’s requirements.
Solar System Condition
Your home value will increase considerably if your system is up-to-date and in excellent condition. Outdated systems in poor condition won’t attract buyers and could deter them. If you’re interested in selling your home with a solar system, ensure it’s in peak condition by performing regular maintenance and upkeep.
Age is another variable that could lower your home’s resale value. Most solar systems last 25 to 40 years with excellent maintenance and care. If your system is already 10 or more years old, the new owners might have 15 years of use after their purchase. Any homes with a solar system older than 10 to 15 years won’t benefit a buyer.
If you’re considering purchasing a home with a solar system, ask the sellers for full documentation on the system. They should provide details from the original sale, warranty coverage, technical issues and service repairs. You should receive a complete solar system history from installation to the present.
