As the world shifts towards cleaner and more sustainable energy solutions, solar panels have become an attractive option for homeowners seeking to reduce their carbon footprint and energy bills. However, concerns about selling a home with solar panels can arise. In this blog, we'll address common worries and provide insights into how to navigate the process of selling a solar-powered home.

What Happens When Selling a Home with Solar?

Selling a home with solar panels might sound complicated, but it's often more straightforward than you might think. If your solar system is financed, there will be some paperwork involved to transfer the responsibility of the existing loan payment to the new homeowner. However, if the system is fully paid off, the process resembles selling a home with an appliance included. Any state credits associated with the system might also be part of the transfer process.

Impact on Home Value

One of the most common questions homeowners have is how solar panels affect their home's value. Solar-equipped homes can often command a higher price in the real estate market. This is because solar panels offer the promise of self-sustaining electricity production, shielding homeowners from the rising costs of traditional energy sources. While it's difficult to quantify the exact dollar value that solar panels add to a home, their value is closely tied to local electric rates. If electricity costs are high, solar panels become an increasingly attractive feature for potential buyers.

Addressing Buyer Preferences

Concerns about whether potential buyers will be receptive to a solar-powered home are valid, but research suggests that these concerns might be overestimated. A 2021 Zillow report revealed that solar panels are becoming a sought-after feature, akin to central air conditioning or a swimming pool. This indicates a shifting perception among buyers, who view solar panels as a valuable asset rather than an obstacle. Just as with any other feature, if a buyer expresses strong preferences against solar panels, it's often best to move on to the next potential buyer who appreciates the value they bring.

Transferring State and Federal Credits

When it comes to incentives like the federal Investment Tax Credit (ITC), only the first owner of a solar system is eligible to claim it. This credit is collected in the year the solar system is installed, making it non-transferable. However, State Renewable Energy Credits (SRECs) can usually be transferred to the new homeowner with relative ease. The process involves creating an account, contacting the appropriate tracking system, and initiating the credit transfer. The incoming homeowner completes a straightforward process to finalize the transfer after closing.

Managing the Transfer Process

While it's ultimately the homeowner's responsibility to oversee the transfer process, you won't be alone in this journey. Your real estate agent and legal counsel, whom you might have hired for the sale, can provide invaluable guidance and support. Additionally, your title insurance agent will likely handle research related to liens and other title issues. Staying informed about the transfer process will ensure that nothing catches you by surprise.

Smooth Payment Transfer

Whether you have a solar lease or a loan, the payment transfer process is generally not complicated, provided you're proactive about it. Filing the necessary paperwork and contacting the lease or loan company to initiate the transfer process is essential. Waiting until the last moment is not advisable, as it could potentially delay the closing process. By taking initiative and staying ahead of the game, you can ensure a seamless transition of solar-related responsibilities to the new homeowner.

Selling a home with solar panels doesn't need to be a daunting task. With the increasing demand for clean energy solutions and the growing acceptance of solar panels among homebuyers, the process has become smoother than ever. As long as you're well-informed, proactive, and collaborate with the right professionals, selling a solar-powered home can be a breeze. Remember, you're not just selling a house; you're offering a home that comes with the added benefit of sustainable and cost-effective energy generation.