Solar panels are becoming more and more popular because of rising energy costs and the focus on green living and sustainability, but some people considering solar panels are starting to wonder how solar panels will affect the resale process and value of their homes. Intuitively, you would think that solar panels would increase the value of your home because they reduce future owners’ utility bills, but in reality, that’s not always the case.
Because solar panels are a recent trend, some experts are saying that it’s just a big unknown question as to whether solar panels are a pro or a con for future buyers. Most likely it depends on whether or not the buyer is big on sustainability or could care less. It’s like having an in-ground pool: if it’s an amenity that the buyer wants, they’re more likely to choose it over another housing option. If the buyer could care less about solar panels, they’re more likely to choose another house if the solar panels on your house decrease the aesthetic appeal. Ultimately, it may be that solar panels will only help the selling process if the popularity of solar panels increases.
Lease vs. Owning Solar Panels
It’s one thing to try and figure out whether or not solar panels give sellers an advantage, it’s another thing entirely to determine whether or not solar panels increase or decrease the value of the house itself. It seems that it ultimately comes down to how the solar panels have been financed by the original homeowner.
If your solar panel system has been paid for in-full at the initial installation, it will likely increase the value of the house because it decreases future owners’ utility bills overtime. However, many solar manufacturers are offering leased solar panel systems, which allow the buyer to lease the solar panels throughout the time of their use. While this can be a good initial option for solar panel enthusiasts, it may decrease the value of your house over time. When solar panel systems are leased, they are typically seen as separate from the house itself because of the long-term costs.
When a homeowner has a leased solar panel system and tries to sell the house, the future homeowner must take over the lease contract and continue to pay it over time. This may mean that the future homeowner will bargain during the selling process to have the cost of the lease deducted from the selling price of the home. This can decrease the value of your home by up to 10 percent. This can also make the selling process more difficult because the leasing company will have to approve the new resident leaser, and occasionally the company will disapprove the new resident. This causes issues with the home closing process as a whole and may drag out the time it takes to sell the home. If you’re looking to sell your house quickly and at a profit, leasing solar panels may pose a major problem.
To make a long-story short, if you’re considering adding a solar panel system to your home, make sure you understand that leasing the solar panel system may be a bad decision for the long-term value of your home. If you are able to purchase the solar panel system in full during initial installation, however, you will probably increase the long-term value of your home.
