The True Value of Solar Panels in Real Estate

By Doug Cary

Doug Cary has been selling real estate in Davis County since 2005. He is a 2nd generation top producing Real Estate Agent.

When considering the sale of your home equipped with solar panels, understanding the potential impact on the transaction is crucial. Solar panels, whether bought outright or leased, can significantly influence the selling process and the perceived value of your property.

Purchasing solar panels outright generally adds value to your home. Prospective buyers often view such an investment positively, as it promises reduced electricity bills without the hassle of a monthly lease payment. This upfront investment can enhance your home’s appeal in the market.

Conversely, leasing solar panels introduces a layer of complexity to the sale. Buyers must qualify to assume the lease agreement, which might not always be straightforward. A buyer can be financially capable of purchasing your home but still fail to meet the criteria for taking over the solar lease. This scenario can deter potential buyers, potentially hindering the sale.

In Utah, where my experience primarily lies, the added value of solar panels to a home’s sale price is surprisingly modest. Discussions with local appraisers reveal that unlike in some sunnier regions where solar panels significantly increase a home’s market value, the impact in Utah is relatively minimal. The maximum added value I’ve observed in home sales due to solar installations is around $2,000—an amount to consider when evaluating the cost-benefit of installing solar panels.

For homeowners contemplating solar installation with an eye on future sales or for those selling a home already equipped with solar panels, weighing the benefits against potential challenges is essential. Whether solar panels will enhance your home’s value depends on various factors, including your location and the specifics of the solar agreement.

If you’re navigating the complexities of selling a home with solar panels in Utah or have questions about how solar may affect your home’s value, I’m here to help. Reach out with your questions or for personalized advice on managing solar panels during your home sale process.