Buying a Home Outfitted With Solar Power

Harnessing solar power has been a thing for quite some time — probably longer than most think. According to Wikipedia*, scientist Edmond Becquerel discovered the “photovoltaic effect” in 1839, which is a process where voltage or electrical current is produced through light exposure. The first uses for solar panels in the United States were made popular in the 1970s due to the world oil crisis that was occurring at the time. Fast forward to 2025 and around 7% of homes* in the United States are solar powered. That translates to roughly five million homes.  

Solar power can potentially help homeowners save money on their monthly bills, though there’s a cost to initial installation. If you’re shopping for a home that already has solar panels installed, there are some important points to understand before you take the leap. You should know how the system works, how it will affect your finances, and what issues to watch out for. This blog will walk you through everything you need to consider when buying a home with solar power. 

Considering Solar Homes

The market for solar homes has grown in recent years. Homeowners are now discovering that solar properties offer benefits that go beyond lower electricity bills. When you buy a home with solar panels already installed, you start saving on electricity costs from day one. There’s no waiting for permits, installation, or system commissioning. You move in and immediately start benefiting from clean, affordable energy production. Solar installation involves permits, electrical work, utility coordination and system design. When you buy a solar-powered home, the previous owner has already done that work for you. All that’s left to do is enjoy the benefits without the hassle of managing the installation process.  

Unlike a brand-new installation, an existing solar system has a track record. You should be able to see solar data and understand how much electricity the system generates throughout the year and during different seasons. Not all solar installations are created equal, and buying a home with solar panels requires some additional due diligence. 

Solar Power Past 

The most important part to understand when buying a home with solar panels is who actually owns the panels. There are three main scenarios most people will typically encounter, and each one affects the purchase differently. 

Owned Systems: When the solar system is fully owned by the current homeowner, it transfers to the new owner, just like any other part of the house. The system adds value to the property, and you inherit all the benefits and responsibilities. This is usually the most straightforward scenario for homebuyers. 

Leased Systems: This means the current homeowner is leasing the solar panels. You’ll need to either take over the lease payments or the seller will need to buy out the lease before closing. Solar leases can run around 15-25 years. They can include monthly payments that range from $50-200. That amount totally depends on the actual system and your specific market. 

Power Purchase Agreements (PPAs): For a PPA, the homeowner agrees to buy electricity from the solar company. Much like leases, these agreements can transfer to the new owner. That is, unless the seller buys out the contract. 

Always ask about solar ownership upfront. If there’s a lease or PPA involved, get copies of the contracts and understand what you’re taking on. Solar leases can include escalation clauses, which means payments may increase over time. 

Solar Power Performance 

When you’re considering a solar home, you want to make sure you’re getting a system that works well. It’s always good to ask to see at least 12 months of solar data on a home you’re buying. This shows you how the system performs in different seasons. Most newer systems have monitoring that makes this information easy to access, possibly even on an app. Performance does depend on location and roof orientation. Do some research on what the number should look like. If the supplied data seems incorrect or off, then it could be worth having the solar equipment inspected. 

It’s been noted that solar panels can last around 25 years. However, inverters and other parts may need replacement sooner. Research which system was installed and whether any major components have been replaced. When inspecting panels, look for any obvious damage. This can include excessive dirt buildup. Most solar equipment comes with warranties. These may or may not transfer to new owners. Get documentation about what warranties are still active and whether they transfer with the home sale. 

Financial Implications of Solar Home Purchases 

Reports have shown that solar homes can sell for 4-7% more* than a typical house. The exact price completely depends on your local market. System size and ownership structure also come into play. When competing with other buyers, remember that a solar system has value. You might be able to offer slightly more for a solar home because the assumption is your ongoing electricity costs will be lower.  

If the system was installed in the last few years, there may still be available tax credits. Tax credits typically only apply to the person who paid for the installation. 

Questions to Ask If Considering Solar Power For Your Home 

Buying any home can be overwhelming. It can be even more overwhelming if you’re buying a home with a power system you don’t know much about. Here are some questions to ask your real estate agent if you’re thinking about buying a solar home.  

• Is the system owned, leased, or under a power purchase agreement? 
• Can I see the system’s data for the past 12 months? 
• When was the system installed? 
• What company installed the solar panels? 
• What warranties are active, and will they transfer to me as the new homeowner? 
• Has the solar system ever had any problems? 
• Are inspections up to date? 

Answers to these questions proactively can save you time in the future, and may also help you make an informed decision when it comes time to buy a home.  

The Bottom Line When It Comes to Solar 

Buying a home with solar power can be a great decision for many different reasons. The key is doing your due diligence. Talk with your real estate agent and they will let you know all the information about the solar system attached to a home. Make sure you know what you’re buying and what it means for your bottom line. Like any big home feature, solar power requires time and thought to make sure you’re making a smart purchase. 

If you’re looking at an existing home with solar, understanding how the system works is important. It’s also imperative to note what your ongoing obligations will be. Is the system paid for? Are there warranties? Also determine what value it provides to your budget. The solar industry has evolved since the 1970s. Today, buying a solar home isn’t just about the environment. It’s also about making a decision that can provide cost benefits for years to come. 

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