Selling a house is a big decision in itself, and it becomes even bigger when you add solar panels into the mix. While solar energy can be a major selling point for many purchasers, misunderstandings and a lack of preparation can quickly transform solar panels into an obstacle to the sale of your home. Property owners throughout Arizona have lost time, money, and buyer confidence by simply not being aware of a few critical items on their property.
If you plan to sell the home and your property has solar panels installed, understanding the most prevalent errors made by sellers as well as how to avoid making those mistakes can create a distinct difference between a seamless transaction and excessive stress when selling your property.
Mistake 1: Not Understanding Your Solar Ownership Type
One of the biggest mistakes sellers make is not knowing whether their system is owned, leased, or under a power purchase agreement (PPA). Each option affects the sale differently.
For example, selling a house with owned solar panels is generally the simplest scenario. The panels transfer with the home, and buyers often see them as a clear value add. However, selling a home with leased solar panels or selling a home with PPA solar panels involves contracts, approvals, and buyer consent. Failing to understand this upfront can cause delays or even derail a sale.
Mistake 2: Assuming All Buyers Understand Solar
Some sellers think buyers automatically know the advantages of using solar energy. In reality, buyers tend to have questions regarding savings, maintenance, warranties, and future costs. If these questions remain unanswered, potential buyers will likely become hesitant to purchase the property.
When selling a home equipped with Solar Panels, the seller must communicate clearly with prospective buyers. Since buyers want simple explanations instead of complicated terms, if prospective buyers do not completely comprehend the solar panel system, they may not see the value of having a solar panel system and end up not purchasing the house at all.
Mistake 3: Missing or Incomplete Documentation
Warranties and installation documents, net metering agreements, and performance records are all included with a solar system. One common mistake sellers make is to wait until the last minute to compile all of their required paperwork.
Not having the required paperwork could potentially delay the closing or create problems during inspection, or add complications from a legal standpoint if they were to go into default on their loan. By gathering all documents as soon as possible, the seller has increased confidence from potential buyers, as well as a seamless closing process.
Mistake 4: Overpricing or Undervaluing the Solar System
Solar panels provide value in different ways than most sellers think. By overpricing your home based solely on the installation of solar panels, you may scare off buyers. On the other hand, by ignoring the value of your solar panels entirely, you are leaving money on the table. Understanding how solar panels can reduce the long-term cost of energy for your home and effectively communicating that to potential buyers is critical for success when selling a home that has solar panels paid in full or when going through the complexities of selling a home with leased solar panels.
Mistake 5: Ignoring Transfer Requirements for Leased or PPA Systems
Solar panels can be beneficial for buyers; however, it is important to follow some guidelines to sell your home with leased or power purchase agreement (PPA) solar panels. The seller must obtain transfer approval from the solar company prior to selling their house; however, the seller does not realize how long this usually takes to complete.
Therefore, beginning the transfer process prior to receiving an accepted offer will help avoid delays and the “surprise” during escrow when a buyer wants to accept an offer.
Mistake 6: Not Addressing Buyer Concerns Proactively
As a seller, a buyer will typically have questions regarding maintenance costs, the condition of your roof, and what will happen if any portions of your solar system break down or have issues. It’s best not to ignore these concerns as it makes buyers feel uncomfortable about their decision.
By being proactive in explaining the responsibilities of the buyer regarding maintenance and what will happen with the solar system if there is an issue, the buyer will gain confidence and ultimately make a stronger offer and a quicker decision.
Mistake 7: Treating Solar as an Afterthought in Marketing
Solar should never be an afterthought in your listing. Too often, it’s briefly mentioned without context, leaving buyers unsure whether it’s a benefit or a complication.
When selling a home with solar panels, highlighting energy savings, environmental benefits, and long-term value helps position the system as a true advantage rather than a question mark.
Why the Right Guidance Matters
Real estate and solar power are areas that affect a lot of people but not everyone understands how these industries interact. A lot of home sellers are turning to professionals with expertise in both areas to help them navigate this complex transaction process. These agents are able to provide clarity around the sale of your home with solar systems. Instead of treating solar as an issue, they view it as an opportunity to provide buyers with transparency, organization and ease of use—so sellers can avoid making expensive mistakes and eliminate the stress associated with selling their homes with solar systems.
Final Thoughts
Selling a home with solar systems does not need to be a difficult process, however it does require an understanding of both the transaction and the way that solar systems are structured. You need an understanding of your type of ownership as well as addressing the buyer’s questions at the beginning of the process. Avoiding these common pitfalls will save time and protect your home’s equity. Having the right information and a knowledgeable agent can turn solar into a positive selling tool and create confidence with the buyer in facilitating a successful close.
FAQs
1. Is it harder to sell a house with solar panels?
Not necessarily. With proper documentation and clear communication, solar can increase buyer interest.
2. Do owned solar panels add value to a home?
Yes, owned systems typically add value by reducing energy costs for buyers.
3. What happens if my solar panels are leased?
The lease usually needs to be transferred or paid off, depending on the agreement.
4. Can solar delay closing?
Delays can occur if transfer paperwork is not prepared early.
5. Should solar be highlighted in listings?
Absolutely. When explained clearly, solar is a strong selling feature.