So it’s time to sell your house.
Somewhere along the way, you fell in love with the idea of solar energy and you took the plunge and decided to get set up with solar panels.
But now that you’re ready to say goodbye and move on, you’re wondering if your home’s future owners will feel the same about solar.
This is a concern many homeowners have when it comes to selling their solar-powered home so you’re not alone. You may have recognized the benefits of solar energy and were willing to invest in it but what if the next owners don’t exactly agree?
The truth is, solar is a lot more attractive to potential buyers than you realize. That’s why in this post, we’ll break down why selling your solar-powered home is not as hard as you think along with what you can do to make the sale as simple and stress-free as possible.
Solar Panels: the Gold Star of Real Estate
Yes a house with loads of cool amenities is great but do you know what really boosts a home’s value?
Solar panels!
According to research by the National Association of Realtors, solar panels provide 100% cost recovery, making it one of the best upgrades one can add to their home. A recent study by Solar Insure also showed that homes with pre-owned solar systems sold for 5% to 10% more than homes without solar.
Think about it: a solar-powered home comes with electric savings that will shield buyers from future electric rate hikes and give them energy independence so they no longer have to rely on fossil-fueled energy from the grid.
Solar energy’s street cred is obvious and everybody wants in on the fun. It’s basically like that exclusive club that everyone wants to join. Everyone wants the perks but no one wants to bother with the membership process. In this scenario, when someone purchases a home with its own solar panels, it’s like they get an all-access pass to the club from the start—with no fees, no paperwork!
Here are a few other reasons why buyers love a home with solar panels:
1. They enhance the home’s aesthetic: let’s be real, who hasn’t seen a home with shiny panels on its roof and marveled at how edgy and innovative it looks? You don’t see homes like that everywhere which is what makes these homes so eye-catching.
2. They are proof of the home’s energy efficiency: this is obvious but it can’t be overemphasized. Solar panels help homeowners save on their monthly electric bills and regain control of their energy production. A home with solar shows that its sellers are eco-conscious and forward-thinkers who care about sustainable living.
3. They signal the home’s resale potential: the same buyer interested in purchasing your home may want to resell it later. Solar panels guarantee the home’s resale value and give the future owners confidence that they’re making a smart investment.
What Potential Challenges Might Arise?
If you want to sell your home, you should be very open with potential buyers about the ownership of the panels as this carries unique implications. For instance, your prospects will know they are getting a good deal if your panels are fully owned as they won’t have to worry about any additional future costs. They’ll view the solar system as a clear asset that boosts the home’s value and brings undeniable returns down the line.
However, with a third party-owned system (like a lease or purchase power agreement), they would inherit the contract terms along with the panels. That includes transferred monthly payments and check-ins with the solar company to approve them as the new owner. If a buyer is not well versed in solar, these steps could deter them from purchasing regardless of the long-term benefits of the panels. They might start to see the solar system as somewhat of a liability if it’s going to require all this extra effort and costs.
Nevertheless, these challenges are not dealbreakers like some people might think. Some buyers may not really understand the ins and outs of solar so effective communication will be your best friend here. Just make sure to keep all information about your panels handy and be prepared to share them if needed. Also simply explaining to buyers the terms of ownership and answering any questions will help ease their concerns.
How to Make the Sale as Smooth as Possible
Selling a home with built-in solar panels is pretty straightforward even with the potential hiccups we mentioned above. Still, here’s what you can do to make the process as seamless as possible:
1. Be upfront about panel ownership from the start: No potential buyer wants to be blindsided if it turns out that you actually don’t own your solar system. That’s why you need to be transparent as early as possible about the ownership status of your panels. This also applies to contract terms if you’re under a lease or purchase power agreement and you’ll be passing it on to future owners.
2. Emphasize energy savings on your listing: A solar home is typically more expensive than a non-solar home so its price tag might raise a few eyebrows from your prospects. That’s why you need to keep reminding them that solar is a worthwhile investment and the energy savings they’ll incur down the line will typically cover (or even exceed) this cost.
3. Work with a qualified realtor: A realtor who has experience selling solar homes will know exactly how to promote the house to potential buyers while being clear and straightforward about benefits and potential limitations that come with the property.
4. Keep all solar-related documents handy: It’s always a good idea to have all documents related to the upkeep of your panels available, should your buyers have any questions regarding the system’s age, ownership or battery storage for example. This shows you value transparency and you’re willing to work with your buyers to ensure they are fully aware of what is involved with the maintenance of the solar panels.
Selling a home with solar panels is not as tricky as you might think. As long as you communicate clearly with your buyers and highlight how they will benefit from this energy-efficient home, you’ll find a brand new owner for your solar home in no time!