Solar panels are often marketed as an eco-friendly, money-saving home improvement. And while that might be true for the homeowner who installs them, what happens when it’s time to sell? If you’re assuming solar panels will boost your home’s value and attract eager buyers, it’s time for a reality check.
In my experience, solar panels can actually deter buyers more than they attract them. Why? Because most homeowners don’t own their panels outright—they lease them. And that lease? It doesn’t just disappear when you sell your home. Let’s dive into the realities of solar panels in real estate, from lease headaches to unexpected roofing surprises.
The Myth vs. Reality
Myth: Solar panels increase home value.
Reality: Solar panels can complicate the sale of your home, especially if they’re leased. While some buyers may appreciate lower energy bills, most see solar leases as a financial burden they have to take on. And if the system isn’t fully paid off, the buyer will likely need to qualify with the solar company to assume the lease. More paperwork, more hassle.
Think of it like trying to sell a car—with a loan still attached to it—but the new owner has to convince the bank they’re worthy before they can drive off. Except instead of a car, it’s your house.
Solar Leases: The Hidden Hurdle
Most sellers don’t own their solar panels outright—they’re making monthly payments through a lease. That lease is typically transferable, but only if the buyer qualifies with the solar company. So now, on top of the loan approval process, your buyer has to jump through another hoop. If they don’t qualify? Well, now you’re in a tricky spot.
And here’s another kicker: Some sellers receive rebates or incentives when installing solar panels, which they could use to pay down their lease. But instead, many use that money for a vacation, paying off debt, or remodeling the kitchen. (Because, let’s be honest, new cabinets and countertops are a lot more exciting than a lower solar bill.) When it comes time to sell, that outstanding balance still exists, and buyers aren’t always thrilled about inheriting it.
The Roof Replacement Surprise
Now, let’s talk about roofs—because solar panels don’t just sit on them without consequences. If you ever need to replace your roof, the solar company has to come out, remove the panels, store them, and then reinstall them once the new roof is in place. That process isn’t free—it can cost thousands of dollars.
I recently heard a real estate horror story about this. A friend of mine was representing a buyer whose seller had agreed to replace the roof. Sounds great, right? Except the seller didn’t want to pay the $8,000 to remove and reinstall the solar panels. So, instead of fully replacing the roof, the roofing company just worked around the panels. Underneath them? The old, worn-out shingles were left untouched.
Thankfully, the inspector my friend recommended used a drone to verify the work far after the inspection had concluded, catching the problem before closing. I can only imagine what would’ve happened if they hadn’t—probably a lot of finger-pointing, an expensive fix, and a group of very sun-powered squirrels enjoying a prime real estate investment.
The photos included here are of what that partial roof replacement looked like—it’s a prime example of why buyers need to ask questions.
Who Really Benefits?
Let’s be fair—solar panels do have benefits. But they primarily make sense for:
✔️ Homeowners who plan to stay in their home for 20+ years – The financial savings on energy bills typically take decades to outweigh the cost of installation or leasing.
✔️ Eco-conscious buyers – If sustainability is a priority, solar panels can be an attractive feature. But it’s more of a lifestyle choice than a financial gain.
✔️ People who own their system outright – If you fully paid for your solar panels and aren’t tied to a lease, great! This makes things much simpler when selling.
For most homeowners, though, solar panels are a long-term investment with little immediate payoff—and can actually create barriers when selling.
What to Watch For: Buyer & Seller Tips
🔎 Sellers:
- If you have a solar lease, contact your solar company before listing your home. Know what’s required for a transfer and whether a buyer must qualify.
- Be upfront with potential buyers about the lease terms. Surprises in escrow are never fun.
- If you’re replacing your roof, replace all of it—not just the parts without panels. You wouldn’t patch only half a tire and expect a smooth ride, would you?
🔎 Buyers:
- Ask for all lease documentation before making an offer. Understand what payments you’d be responsible for and whether you qualify to assume the lease.
- Have your inspector check under the panels if the seller claims the roof was replaced. A drone inspection can save you a huge headache.
- Consider whether the potential energy savings outweigh the lease payments. Because paying extra each month and still waiting 20 years to see a financial benefit? That’s not exactly a win.
Is Solar Right for You?
At the end of the day, solar panels aren’t an automatic deal-breaker, but they aren’t the golden ticket to increased home value either. If you’re buying or selling a home with solar, go in with your eyes open—ask the right questions, get the right inspections, and make sure the financials make sense.
And if you’re unsure how to navigate a home sale or purchase with solar panels? Let’s chat—I’m happy to help you sort through the details and avoid any surprises.