Key takeaways
- Buying a house with solar panels can offer long-term savings and added property value when properly evaluated.
- Always confirm whether the solar panels are owned or leased before making an offer.
- Review system documentation, including installation date, warranty details, and utility savings.
- Understand how solar agreements may affect financing and insurance requirements.
- Ask if the system can be upgraded in the future to fit your long-term energy needs.
With solar panels now on roughly 7% of homes in the U.S., it’s becoming more common for buyers to consider homes that already come equipped with this energy-saving upgrade.
These devices could be a great addition, whether you’re in the market for a home in Plano, TX, or have put an offer on a home in Los Angeles, CA.
While solar panels can be a huge perk, they also come with a few things you should look into before making an offer. This guide will walk you through questions to ask, key benefits, and potential challenges when buying a house with solar panels.
1. What are solar panels and how do they work?
Solar panels are devices designed to capture sunlight and convert it into usable electricity for your home. They’re made up of photovoltaic (PV) cells that absorb energy from the sun and turn it into power your home can use.
Most solar systems are mounted on the roof, where they get the most sun exposure. The number of panels depends on the home’s energy needs, and some setups include a battery to store extra power for nighttime use or outages.
For homebuyers, solar panels can mean lower utility bills and a reduced carbon footprint. They’re a clean, renewable energy option that makes a home more efficient—and possibly more appealing down the line if you decide to sell.
>>READ: How Do Solar Panels Work?
2. Why should you consider buying a home with solar panels?
Buying a house with solar panels already installed can be a great move, especially if you are looking to lower utility costs or reduce your environmental footprint. Solar panels offer clean energy and may increase the overall value of the home. They can also provide long-term savings by cutting down on monthly electricity bills. For many buyers, it feels like getting a head start on energy efficiency without having to invest in the installation yourself.
3. Will you own or lease the solar panels?
One of the most important things to ask early in the buying process is whether the solar panels are owned outright or if they are leased. This detail can significantly impact your decision.
If the homeowner owns the panels, you will typically not have to worry about additional monthly payments or transferring a lease. The value of the panels is usually factored into the sale price.
However, leased systems can be more complex and may come with added responsibilities for the buyer. As Jason Sumlanski, Principal Solar Designer at Florida Solar Design Group, explains, “When buying a house, a leased solar panel system is not an asset — it’s an obligation. Do your research before assuming any loan or lease tied to the system.”
If the panels are leased, you may be required to take over the lease agreement. This could affect your financing or debt-to-income ratio. Make sure to review the lease terms and find out if the provider allows for a smooth transfer of the agreement. You will also want to confirm how much longer the lease lasts and what maintenance responsibilities fall on you as the new owner.
4. What’s the condition of the panels and roof?
Solar panels are built to last, often with warranties ranging from 20 to 25 years. Still, it is important to inspect the system’s current condition. During the home inspection, request that the inspector look closely at the roof and the solar equipment. You may also want to ask the seller for documentation that shows the installation date, manufacturer details, and maintenance history.
Check the system performance
Before focusing on age or appearance, make sure the system is actually producing energy as expected.
Rick Irizarry, Director of Sales at New York State Solar Farm, shares, “Most systems include a monitoring app that lets you track energy production, which is a good indicator of whether everything is working properly. It’s also important to know if the original installer is still in business, as they’re often the best resource for service and warranty support.”
Because solar systems are not always thoroughly evaluated during a general inspection, it can be helpful to bring in a specialist.
Parker Jensen of Utah based Gardner Energy explains, “Make sure the system is operating as expected, not just that panels are installed. Solar issues are often missed during a standard home inspection, so having a professional evaluate the system can help avoid surprises.”
Assess the roof condition
Solar panels can make it harder to assess the roof, but its condition is just as important as the system itself.
Jeff Guthrie of Phoenix Roofing & Repair advises, “Have a licensed roofing professional inspect the roof beneath the solar system. Panels can hide damage or an aging roof, and removing and reinstalling them later for repairs can add thousands to the overall cost.”
Spot hidden costs
Even if the panels themselves are in good shape, some components may need to be replaced sooner than expected.
The Solar Directory notes, “Inverters typically last 10 to 15 years, which is much shorter than the panels themselves. Ask when it was last replaced, as a new inverter can cost $1,000 to $2,000 or more.”
Review system components
If the system includes a solar battery for energy storage, ask about its condition and remaining lifespan. Replacing a solar battery can be expensive, so it is helpful to know if this is something you will need to budget for.
>> Read: Should You Get a Roof Inspection Before Buying a House?
5. How do solar panels affect your financing and insurance?
Some lenders may view solar leases or power purchase agreements as a form of debt. That means the monthly payment associated with the solar agreement could be counted when calculating your loan eligibility. If the panels are owned, this typically will not be an issue.
To better understand how these added costs impact your overall budget, you can use a home affordability calculator to estimate what you can comfortably afford.
You will also want to let your home insurance provider know about the solar system. In many cases, insurance can easily cover solar panels that are attached to the home, but it is best to verify this upfront so there are no surprises later.
6. Will you actually save on energy costs?
Not all solar panel setups are created equal. A home’s energy savings will depend on panel size, system efficiency, local climate, and your own energy usage. Ask the seller for recent utility bills so you can compare them with similar homes in the area.
If the house includes a net metering agreement, you may be able to earn credits for excess energy that the system sends back into the power grid. This can lead to even more savings, but it is important to check with the local utility company to understand how it works in your area.
Ultimately, understanding the details behind the system will give you a clearer picture of potential savings. Brian Pascoe, President of Signature Solar, says, “Solar can add real value to a home, but only if buyers understand the details. Confirm ownership, review production data, and check the condition of both the system and the roof to avoid unexpected costs.”
7. Can you upgrade or expand the system?
Maybe you are planning to add an electric vehicle or just want more coverage. If you think you might want to upgrade the solar system in the future, make sure to ask whether the current setup allows for it. This may include checking if the inverter has capacity for additional panels or if the roof can support more solar equipment.
8. What are the pros and cons of buying a house with solar panels?
Buying a home with solar panels already installed can seem like an attractive perk. After all, solar energy promises environmental benefits and potential savings on your energy bills. However, before getting too excited, it’s smart to weigh the advantages against the potential drawbacks.
Pros of buying a home with solar panels
- Lower electricity bills: Solar panels can significantly reduce your monthly utility costs by generating your own power.
- Environmentally friendly
- Possible tax incentives
- Higher home value
- Reduced exposure to rising energy costs
Cons of buying a home with solar panels
- Leased panels can be complicated
- Maintenance responsibilities
- Possible roof repairs or limitations
- Uncertain savings
- Homeowners Association (HOA) restrictions
Not all solar installations are equal, and poor workmanship can lead to costly issues.
Brock Hayward of Excel Roofing, a roofing company based in Denver, CO explains, “Improperly installed mounting hardware is one of the biggest concerns, as it can lead to roof damage or leaks over time. Buyers should also consider the age of the roof, since removing and reinstalling panels for replacement can add thousands to the overall cost.”
FAQs:
Who installed the solar system, and when?
Ask for the name of the installer and the installation date. Knowing who installed the system can help you verify its quality, and the timeline gives you an idea of how much life is left in the equipment.
Do solar panels transfer to the new owner?
Is there a warranty in place, and is it transferable?
Most solar panels come with a manufacturer’s warranty that can last 20 years or more. Make sure to ask if the warranty still applies and whether it will transfer to you after the sale.
What are the terms of the lease or agreement if the system is not owned?
If the panels are leased or under a power purchase agreement, review the full contract. Find out how long the agreement lasts, how much the payments are, and whether the lease can be transferred smoothly to a new owner.
How much have the sellers been paying for electricity since installing solar?
Request recent utility bills to understand the actual savings. This can help you see how well the system performs and whether it meets your energy needs.
Is it really worth it to get solar panels for your house?
For many homeowners, yes. Solar panels can lower energy bills, increase home value, and reduce your carbon footprint. However, factors like sunlight, roof condition, and whether you buy or lease panels will impact the overall value. If you plan to stay in the home long-term, they are often a smart investment.
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