Why Buying a House with Solar Panels is a Smart Idea

Why Buying a House with Solar Panels is a Smart Idea

In today’s world, energy efficiency and sustainability have become major priorities for homeowners. One of the best ways to ensure both is by buying a home with an existing solar panel system. This investment not only aligns with green living but also offers significant financial advantages. In this article, we’ll discuss why purchasing a home with solar panels is a smart move and how it can provide lasting savings, enhanced home value, and more.

1. Financing Solar with Your Mortgage

One of the biggest advantages of buying a home with solar panels is that you can finance the cost of the system through your mortgage. This is typically the cheapest and most efficient way to pay for solar. Mortgage interest rates, which have historically ranged between 2.5% and 5% over the last decade, are often lower than solar loans or other financing options.

A key difference is the dealer fees associated with solar loans. These fees are added to the financing cost of the solar system and can increase the total cost by up to 15-25%, depending on the lender. This makes financing solar through a mortgage even more attractive, as it eliminates these extra costs. For example, bundling the cost of a solar system into a 30-year mortgage with a 3.5% interest rate could result in a lower monthly payment compared to a solar loan, even if the initial system price is similar.

The cost of a new solar system installation can range from $15,000 to $30,000, depending on the size of the system. When bundled into a mortgage, the added monthly payment could be as low as $67 to $135—while simultaneously reducing energy costs by hundreds of dollars per month. This makes it an affordable, long-term investment that pays for itself over time.

2. Negotiating the Price with the Seller

Homes with solar panels also offer a unique opportunity for price negotiation. Depending on the age and condition of the solar system, buyers can often negotiate a lower overall purchase price. The National Renewable Energy Laboratory (NREL) reports that homes with solar panels sell for 4.1% more on average than homes without solar. However, savvy buyers can use the system’s age or maintenance needs to negotiate a better price.

For example, if the solar system is nearing the end of its inverter life (which typically lasts 10-15 years), a buyer could ask the seller to either replace the inverter or lower the price to accommodate future maintenance costs.

3. Check the Condition of the Solar System

Solar panels are known for their durability, with most systems having a lifespan of over 50 years. However, it’s important to check the condition of the system before buying. A well-maintained system can save a buyer thousands in future repairs.

Ask the seller for maintenance records, inverter replacement history, and details about the monitoring system to ensure everything is running smoothly. According to EnergySage, properly maintained systems lose only about 0.5% of their efficiency each year, meaning a 10-year-old system could still operate at 95% capacity.

4. Roof Replacement Already Done

One of the hidden advantages of buying a home with solar panels is that the previous owner may have already replaced the roof. Solar panel installation often requires a roof inspection, and in many cases, homeowners replace older roofs before adding solar. This means the buyer gets both a solar system and a newer roof that should last for years.

Roof replacements typically cost between $10,000 and $20,000, so buying a home where this work has already been done can save a substantial amount. Moreover, reinstallation of solar panels after roof work is an additional cost that you won’t have to worry about if the roof has already been replaced.

5. Potential for Additional Upgrades

Another key benefit of buying a home with solar is the potential to upgrade the system, particularly by adding a solar battery backup. Batteries like the Tesla Powerwall or LG Chem provide energy security by storing excess power for use during outages or peak demand times, which can further increase savings.

The cost of a solar battery can range from $7,000 to $10,000, but like the solar panels, it can often be financed with the home purchase. Plus, adding a solar battery can improve a home’s value and appeal. The Federal Investment Tax Credit (ITC) for solar systems (currently at 30%) also applies to solar batteries, making it an attractive upgrade.

6. Lower Electricity Bills from Day One

Homes with solar panels have an immediate financial benefit—lower electricity bills. According to the U.S. Department of Energy, the average American household spends about $115 per month on electricity. In states like Florida, where electricity rates are rising, this can easily exceed $150 per month. By contrast, homes with solar panels can cut their electricity bills to as little as $20 per month or even eliminate them altogether in some cases.

For example, in California, a state with high electricity rates, homeowners with solar panels save an average of $1,500 per year on energy costs. Even in states with lower rates, the savings add up, making solar-powered homes a more attractive option than those without.

7. Take Advantage of Current Interest Rates