Reselling Homes With Solar Panels

Reselling a home with solar panels generally works in the seller's favor, but only when the system is owned outright. According to a 2025 study by SolarReviews, homes with owned solar panels sold for an average of 6.9% more than comparable homes without solar. Leased systems are a different story entirely. They can complicate the sale, reduce the value boost, and even kill deals if the buyer cannot qualify to take over the lease contract. This article covers everything a homeowner needs to know before listing a solar home, including how to maximize the sale price, how to handle leases and loans, what buyers actually look at, and what to watch out for.

Is It Harder to Sell a Home With Solar Panels?

Selling a home with solar panels is harder when the system is leased, and generally easier when the panels are owned outright. Owned solar systems are a strong selling point. Research from SolarReviews confirms that homes with owned solar sell 13 to 20% faster than comparable homes without solar, in addition to commanding a higher price. Leased systems, however, require the buyer to qualify for a contract transfer with the solar company, which adds paperwork, a credit check, and sometimes a waiting period that can extend closing by two to four weeks.

According to a 2025 SolarInsure study of over 5,000 California homes, homes with leased solar showed little to no statistically significant impact on sale price, while homes with owned systems sold for 5% to 10% more. The difference between owning and leasing is not subtle. It is the difference between a feature buyers bid up and an obligation buyers negotiate around.

For homeowners in South Florida exploring their options, understanding whether your panels are owned or leased is the first and most important question to answer before listing your home. Our team at ASP SuperHomes Solar can help you understand exactly where you stand with your system.

Why Is It So Hard to Sell a House With Solar Panels on a Lease?

Selling a house with leased solar panels is hard because the buyer must take over a long-term financial contract they did not negotiate and may not fully understand. Solar leases typically run 20 to 25 years. A buyer who purchases the home midway through that term inherits whatever payment structure and escalation clauses were in the original contract. According to Redfin, many buyers are also concerned about potential roof penetrations, system maintenance, and what happens if the system underperforms. Those concerns are harder to dismiss when the buyer is also being asked to qualify for a new financial obligation at the same time they are taking on a mortgage.

If the buyer does not qualify for the lease transfer, the seller faces two choices: buy out the remaining lease balance, which can run tens of thousands of dollars, or have the panels removed. According to Redfin, removing panels is not recommended because it can damage the roof, void warranties, and cost thousands in labor alone, with no resale benefit to offset those costs.

Do Solar Panels Raise Property Value When Selling?

Solar panels raise property value when selling, provided the system is owned and in good working condition. A 2025 SolarReviews study comparing over 400 recently sold homes with and without solar found that homes with solar sold for an average of 6.9% more. With the median U.S. home value at around $416,900 in 2025, that translates to nearly $29,000 in additional value on a typical sale. That figure is larger than the average installation cost of a residential system, which runs approximately $19,000 to $22,000 after incentives, meaning the resale premium alone can deliver a net gain before counting any monthly electricity savings.

That 6.9% figure is a national average. The premium varies widely by location. According to Zillow research, New Jersey homeowners saw increases of up to 9.9%, while some markets showed gains as low as 2.7%. Florida's combination of high electricity rates, year-round sun, and a large base of eco-conscious buyers positions it well. The residential solar panels market in South Florida reflects that buyer appetite directly.

What Raises Property Value the Most?

Among solar-specific factors, what raises property value the most is a fully owned system that is modern, well-maintained, sized to cover most of the home's electricity use, and paired with battery storage. According to Lawrence Berkeley National Laboratory research, each kilowatt of installed solar capacity adds approximately $5,911 to a home's resale value. A 10-kilowatt system on this basis alone could add nearly $59,000 to the home's value, which far exceeds the cost of installation. System output matters more than panel count. A compact, high-efficiency array that produces strong results is more attractive to buyers than a large, aging system that delivers inconsistent performance.

Battery storage also adds meaningful value. Buyers recognize that a system with a solar battery backup can power the home through outages and reduce dependence on the grid entirely during peak-rate evening hours. In Florida, where hurricane season is a real and annual concern, that energy security feature resonates strongly with buyers.

What Decreases Property Value the Most When Selling a Solar Home?

What decreases property value the most in a solar home sale is a leased system that is difficult or impossible to transfer to the buyer. According to the SolarInsure study, leased systems showed no consistent positive impact on sale prices. Beyond that, aged or underperforming systems, panels installed on an older roof that may need replacement soon, and systems with poor monitoring records all reduce buyer confidence and negotiating leverage. A solar loan with an existing lien on the title is another value-reducer. It does not eliminate the premium, but it does require the seller to pay off the loan at closing, which reduces net proceeds from the sale.

Is Selling Back to the Grid Worth It?

Selling back to the grid through net metering is worth it in states with strong compensation policies, but the value has declined significantly in several major markets. According to the Solar Energy Industries Association (SEIA), 34 states plus Washington D.C. and Puerto Rico have mandatory net metering rules in place. Under full net metering, the utility credits you at the full retail rate for every kilowatt-hour of excess energy your panels send to the grid. Most homeowners with a properly sized system under full net metering see annual bill reductions of $1,000 to $2,500, according to SolarTech research.

The problem is that net metering is shrinking. California's NEM 3.0 policy reduced export credits by 75% for new customers starting in 2023. Hawaii ended net metering for new customers entirely. Florida passed legislation in 2024 creating a gradual step-down that will reduce export credits to 60% of retail rate by 2027 for new installations. In states that have shifted to net billing, the utility typically pays wholesale rates of $0.02 to $0.06 per kilowatt-hour for exported power, while charging retail rates of $0.15 to $0.19 per kilowatt-hour when you buy it back at night. That gap directly extends payback periods and reduces total lifetime savings.

How Much Do You Get for Selling Back to the Grid?

How much you get for selling back to the grid depends entirely on your state's net metering or net billing policy and your utility company. Under full net metering in states with strong programs, you receive a credit equal to the full retail electricity rate, typically $0.10 to $0.15 per kilowatt-hour. A homeowner with a 6-kilowatt system in a state with full net metering and good sun exposure might generate roughly 800 kilowatt-hours of excess monthly production, earning a credit worth about $80 to $120 per month, or close to $1,000 annually. Under net billing programs like California's NEM 3.0, that same homeowner earns far less, sometimes just $16 to $24 per month for the same amount of exported energy.

According to the SEIA, on average only 20% to 40% of a solar system's output ever goes back to the grid. The rest is used directly in the home, which is the highest-value use of solar energy. Maximizing self-consumption by running high-draw appliances during peak solar hours and storing surplus in a battery is a more reliable path to savings than depending on grid export credits that are subject to policy change.

Why Do People Say No to Solar Panels When Buying a Home?

People say no to solar panels when buying a home primarily because of leased systems that transfer financial liability, concerns about the age and condition of both the panels and the roof beneath them, and uncertainty about how the system performs. According to a 2024 National Association of Realtors (NAR) sustainability survey, 44% of homebuyers said utility costs were an important factor in their purchase decision, and 57% of real estate agents found promoting energy-efficient features to be somewhat or very valuable. But buyer enthusiasm drops sharply when the solar system comes with a lease that has escalating payments or a remaining term of 15-plus years.

Older systems also raise flags. A solar array that is 15 to 20 years old and approaching the end of its performance warranty period is viewed as a near-term expense, not a benefit. Panels degrade at an average of 0.5% to 0.8% per year, according to National Renewable Energy Laboratory (NREL) data. A system installed in 2008 that has degraded 12% to 16% from its original output is not the same selling point as a new or recently installed system. Buyers with any due diligence background will request system performance records, and a weak performance history turns a feature into a negotiation point.

Why Shouldn't You Install Solar Panels Before Selling?

You should not install solar panels immediately before selling if you do not have time to recover any portion of the investment and if the system will be financed with a loan. A solar loan places a lien on the property title. That lien must be paid off at or before closing, which reduces your net sale proceeds. If the system was just installed, you have had no time to earn back any of that cost through energy savings, and the resale premium requires the buyer to recognize the value, which not all buyers will in a short marketing window. According to Redfin, the best outcomes come when sellers have owned their system long enough to demonstrate strong performance records and have a paid-off or mostly paid-off system at the time of sale.

There is one exception. If your home is competing in a market where solar is in high demand and you can purchase the system outright without a loan, even a recently installed system can add measurable value. This is particularly relevant in high-electricity-rate markets where buyers are actively seeking homes with lower energy costs. South Florida's year-round heat and rising utility rates make it a market where solar is genuinely valued by informed buyers.

Owned vs. Leased Solar: How Financing Affects Your Home Sale

The financing structure of a solar system has a larger impact on your home sale than almost any other factor related to the panels. The table below shows how the two primary structures compare across the most important sale considerations.

FactorOwned Solar SystemLeased Solar SystemImpact on Sale PriceAdds 5–10% on average nationallyLittle to no consistent price increaseTransfer ProcessSimple; included in home sale like any fixtureBuyer must qualify with solar companyBuyer ReactionPositive; seen as an assetMixed; often viewed as a financial obligationTitle/Lien IssuesNone if paid in full; lien must clear at closing if financedLease is tied to property; complicates title transferSale SpeedSells 13–20% faster than non-solar homesMay extend closing by 2–4 weeks for lease transferTax Credit RetentionSeller keeps any already-claimed creditTax benefits go to the leasing company, not homeownerRemoval OptionNot recommended; damages roof and costs thousandsNot recommended; requires buyout and roof repair

Sources: SolarReviews 2025 Home Value Study, SolarInsure 2025 California Study, Redfin 2025, National Association of Realtors 2024 Sustainability Report.

What Is the Number One Reason a Solar Home Doesn't Sell?

The number one reason a solar home does not sell, or sells for less than it should, is a leased solar system that the buyer cannot qualify to take over. The buyer must pass the solar company's credit check, agree to the remaining term of the lease (which can be 15 to 20 years), and accept any payment escalation clauses built into the original contract. Mortgage lenders are also cautious. Some lenders view an existing solar lease as a financial obligation that affects the buyer's debt-to-income ratio, which can affect how much the buyer qualifies to borrow. When the lease transfer falls through, the deal often falls through with it.

A secondary but significant reason is poor documentation. Sellers who cannot produce system warranties, installation records, performance data, and the original contract often face buyers who discount the value of the system out of uncertainty. According to Redfin, being transparent with all documents organized and ready early in the process is one of the most effective ways to prevent deals from stalling over solar concerns.

What Are Some Red Flags When Selling a Home With Solar?

Red flags when selling a home with solar panels include a lease with high remaining balances or escalating payment terms, panels installed on a roof that is 15 or more years old, system performance records showing declining output without a clear explanation, unresolved liens tied to a solar loan, and a system that was sized too small for the home's actual electricity use. Buyers who do their research will ask for 12 months of utility bills before and after solar installation to verify that the system delivers meaningful savings. A system that has not reduced bills is a liability, not an asset. Sellers who cannot demonstrate real savings will face buyers who treat the panels as decoration, not value.

How Long Do Solar Panels Last on a Home You Plan to Sell?

Solar panels last 25 to 30 years under standard industry warranties, with most modern panels still producing 80% to 92% of their original output at the end of that period. According to NREL research analyzing nearly 2,000 solar systems globally, modern monocrystalline panels degrade at an average of just 0.4% per year. That means a 10-year-old system is still performing at roughly 96% of its original capacity. For buyers, a system with 15 or more years of warranty life remaining is a strong asset. A system with 2 to 5 years left before the performance warranty expires requires a conversation about replacement cost and timeline.

In Florida's climate, the heat and humidity can accelerate degradation somewhat. According to EnergySage, systems in hotter climate zones degrade at approximately 0.88% per year versus 0.48% in cooler regions. This is still a slow decline by any measure, but it is worth noting for homes in South Florida where sun intensity is high year-round. Annual cleaning and periodic professional inspection extend panel life and maintain performance records that support a stronger sale price.

How Much Should My Electric Bill Be If I Have Solar Panels?

Your electric bill with solar panels should be significantly lower than without them, but rarely zero unless you have battery storage and a system sized to cover 100% of your usage. According to SolarTech research, a system sized to fully offset annual consumption under full net metering can reduce variable usage charges by 70% to 100%, but most households still pay fixed utility connection charges of $10 to $30 per month regardless of solar production. Homes in states with strong net metering programs see average annual bill reductions of $1,000 to $2,500. If your bills have not dropped meaningfully after going solar, the system may be undersized, your consumption may have increased, or a panel may be underperforming. Buyers will ask these questions, and sellers need clear, documented answers.

What Not to Say to an Appraiser About Your Solar System

Do not tell an appraiser your solar system eliminates your electric bill if it does not, do not overstate system age or condition, and do not guess at production numbers. Appraisers who specialize in solar homes use specific valuation methods, including income-based valuation (the projected energy savings the system will generate over its remaining lifespan) and cost-based valuation (what it would cost to replicate the system today). The most effective thing you can say to an appraiser is backed by documentation: your installation contract, warranty certificates, inverter monitoring reports showing monthly and annual production, and current utility bills. Factual, specific, documented information produces better appraisals than verbal claims.

According to Aurora Solar's 2025 Snapshot, 78% of homeowners believe solar panels are a good investment. Appraisers share that view when the data supports it. When the data is missing, they default to conservative estimates that leave value on the table for the seller.

Working with a real estate agent who has specific experience selling homes with solar energy systems is one of the most practical steps a seller can take. An experienced agent knows which appraisers in the local market understand solar valuation and how to communicate the system's value in the listing itself.

How to Stop a Solar Panel System From Hurting Your Sale

The most effective steps to prevent solar panels from hurting your home sale are: confirm your ownership status before listing, gather all system documentation, get a professional solar inspection to verify current performance, and have a licensed installer address any visible issues before buyers see the home. If you have a lease, contact the solar company before listing to understand the transfer process, requirements, and timeline. Disclosing this information upfront to your listing agent and potential buyers prevents surprises that derail negotiations later.

According to a 2024 NAR survey, real estate agents who promote energy-efficient features as part of a listing generate measurably better buyer interest. A listing that quantifies the system's annual production, average monthly savings, remaining warranty period, and monitoring access gives buyers the confidence to place competitive offers rather than low-ball bids built around uncertainty. The clearest documentation package a seller can provide is monthly production reports from the system's monitoring portal, the original installer's warranty, and 12 months of utility bills showing before-and-after comparisons.

Frequently Asked Questions

Why Are People Getting Rid of Solar Panels Before Selling?

People are getting rid of solar panels before selling primarily because of leased systems where the seller expects the buyer to reject the transfer, or because the system is old, underperforming, or installed on a roof that needs replacement. Removing panels is rarely advisable. According to Redfin, removal can damage the roof, void existing warranties, and cost thousands in labor with no offsetting benefit to the sale price. Sellers in this situation are better served by paying off or buying out the lease and transferring it as a positive feature, or by pricing the panels' condition accurately into the listing and negotiating from there.

Can You Transfer a Solar Lease to a New Buyer?

Yes, you can transfer a solar lease to a new buyer in most cases, but the buyer must qualify with the solar company. The solar company will typically run a credit check on the buyer and require them to agree to the remaining terms of the lease. If the buyer qualifies, the transfer adds a few weeks to the closing timeline. If they do not qualify, the seller must either buy out the lease or negotiate another resolution. This uncertainty is why leased systems complicate home sales in ways that owned systems do not. Sellers should initiate the transfer process with their solar company as early as possible once a buyer is under contract.

Does the Federal Solar Tax Credit Transfer When You Sell Your Home?

No, the federal solar tax credit does not transfer to the buyer when you sell your home. If you claimed the credit when you installed the system, you keep that benefit regardless of when you sell. If you installed a system but have not yet claimed the credit for that tax year, the credit is still yours to claim when you file. The buyer does not receive any new tax credit simply by purchasing a home with existing panels. Leased systems are different; the tax credits on leased panels belong to the solar company, not the homeowner, which is one reason leases typically do not increase home value the way owned systems do.

How Long Does It Take to Close on a Home With Solar Panels?

Closing on a home with owned solar panels takes no longer than a standard home sale. Closing on a home with leased panels typically adds 2 to 4 weeks to the process due to the buyer's lease transfer application and the solar company's approval timeline. Sellers can shorten this gap by contacting their solar company immediately when they accept an offer and having all lease documents ready for the buyer to review. The more organized and transparent the seller is, the smoother the transfer process runs, and the less likely a deal is to fall apart over solar complications.

What Happens to Solar Panels When You Sell Your House?

When you sell your house, solar panels that are owned outright are included in the sale as a permanent fixture, the same way a roof or HVAC system is included. The buyer inherits the system, its remaining warranties, and any transferable service agreements. Solar loans tied to the property must be paid off at closing. Leased systems require formal transfer to the buyer through the solar company's process. In all cases, providing the buyer with full documentation of the system, including performance records, warranties, and original installation contracts, protects both parties and ensures a clean transfer of the asset.

Do Solar Panels Affect a Home Appraisal?

Solar panels do affect a home appraisal positively when the system is owned, well-documented, and producing energy efficiently. According to Lawrence Berkeley National Laboratory, appraisers who use income-based valuation methods can factor in the projected lifetime energy savings of a system when determining market value. The challenge is that not all appraisers are trained in solar valuation. Sellers benefit significantly from working with listing agents and appraisers who have specific experience with solar homes in their local market, and from providing clear production and savings documentation to support the valuation.

Why Are My Solar Panels Not Saving Me Money Before I Sell?

Solar panels are not saving money before a sale most commonly because the system was undersized for the home's actual usage, because net metering credits in the area were reduced after installation, or because a component such as the inverter is underperforming and has not been serviced. According to Solar.com, some installers deliberately size systems to cover only 70% to 80% of a home's consumption to hit a lower sale price at installation, leaving the homeowner with a bill they did not expect. Before selling, a professional solar inspection to verify output against the original performance projections is the most reliable way to identify issues and address them before buyers see your system records.

The Takeaway

Reselling a home with solar panels can be a genuine financial advantage, but the outcome depends almost entirely on how the system was financed. Owned systems add an average of 6.9% to sale price and help homes sell 13 to 20% faster, according to SolarReviews 2025 data. Leased systems add complexity, can slow closings by weeks, and rarely deliver the same price premium. The clearest path to a smooth, profitable solar home sale is documentation, transparency, and working with professionals who understand how solar interacts with real estate in your specific market.

If you are thinking about going solar now and want to be in the strongest possible position when it comes time to sell, owning your system outright is the right move from the start. ASP SuperHomes walks homeowners through solar ownership options honestly, so you know exactly what you are getting and how it positions you for the future. Reach out to our team to get started.

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