Solar panels may look appealing, but leased systems and low appraisal value can hurt your sale. Here’s what you need to know before you upgrade.

Are solar panels actually worth it when it comes to a home’s value?" This is a question I’ve been hearing a lot lately, especially from homeowners thinking about upgrades. Many people assume that solar panels are a smart investment because they help with energy savings. But when it comes to selling your home, the answer may not be as clear-cut. Today, I want to walk you through what solar panels really do—and don’t do—when it comes to increasing your property’s value.

Do solar panels add value to your home? The short answer is: not as much as you think. While solar panels can make a home more attractive to some buyers, most appraisers won’t assign them much, if any, value in their reports. Even if you’ve spent $30,000 to $60,000 on your system, you likely won’t see that money reflected in your home’s appraised value. And even buyers who like solar usually aren’t willing to pay more just because a system is in place.

“Solar panels may help your monthly bills, but they won’t guarantee a higher resale price as buyers and appraisers don't put much value to them.”

What if you lease the panels? Leased solar systems come with their own set of challenges. If you still have a lease when it’s time to sell, the buyer will often need to take over that lease and qualify for it. That can be a dealbreaker. Some buyers won’t want the added cost or responsibility, which can make your home harder to sell.

What should you consider before installing solar? If you’re looking into solar, it’s important to compare your upfront cost with your long-term savings. For example, if your system saves you $100 a month, that’s $1,200 per year. But if the system costs you $40,000, it could take over 30 years to break even. At that point, many homeowners start rethinking the decision.

Overall, a solar panel is a good investment if your main goal is long-term energy savings. But if you're hoping to boost your home’s value or make it more appealing to buyers, you might want to consider other home improvements that give you a better return. If you’re planning any upgrades and want to know what adds real value in today’s market, you can call or text me at (407) 499-8993 or I will walk you through your options and help you make smart decisions before you invest.