Are Solar Panels Worth the Investment?

Solar panels have been around for years, but have recently become an option for residential homeowners. Despite the panels’ impact on an owner’s utility bills and appeal to climate-conscious consumers, what impact do the glass panels atop a roof have when it comes time to sell your home?

McEnearney agents chimed in to answer the impact solar panels have on the salability of a home and whether or not the potential savings are enough to outweigh the costs, either in the final purchase price of a home or overcome potential buyers’ objections.

Upsides

• Solar panels have come a long way in appearance from the old days, and the sleek ones are not bad. If they’re on the front roof, that will affect curb appeal, especially if uneven. I think that future buyers, especially in Arlington, might reward the owner for being sensitive to climate change.
• I don’t believe it does impact salability either way. Mainly, it’s a consumer learning curve. There’s not a lot of homes with them in the area, but it’s changing. My clients are very happy with them so far.
• I had a listing a year or two ago where the sellers added solar panels. … It wasn’t as much of a visual determent as it was the fact that I had to keep explaining to prospective buyers all the in’s and out’s. I think several folks didn’t make an offer because they were turned off by the idea, but in the end, it probably didn’t impact the sales price one way or the other. So I think in the D.C. area, people shouldn’t do it unless they want to have it for their own use (it is a money saver over time) and not as an “improvement.” On the other hand, my son who lives in LA has them, and they add value because it’s thought of as a real positive feature

Downsides

• They’re perceived as an eyesore; value-neutral at best. Have had folk remove the systems before marketing. Out in the rural areas, value add. Urban, no.
• In my experience, solar panels detract from a home’s value. When it’s time to sell, it takes away from the home’s curb appeal, and some buyers do not want to assume the lease, which transfers to them at settlement. I have known buyers who refused to look at homes with solar panels, and one that requested they be removed as a purchase requirement. The seller complied, at a huge expense. It also becomes an issue when the roof needs to be replaced. It takes many years to realize any financial benefit. I don’t think the minimal benefit is worth it if they want to sell within the lease period, which can run approximately 25 years.
• My experience has been more negative responses to solar panels than positive. Folks don’t like the way they look! Some will say that maybe their utility bills will be more economical, but most folks I dealt with Open Houses were not favorably impressed.
• Curb appeal still weighs on the sale of a home. Climate concerns are certainly influencing behavior on the part of home buyers/owners. Other factors will still matter as much or more, such home style and amenities, the neighborhood, schools, walkability etc. I think it boils down to how many potential buyers will he/she will lose because the panels have a negative impact on the appearance and whether that can be offset by those who would be attracted to it because of the alternative energy provided by the panels.
• Run, don’t walk away from solar panels! They make selling your home an absolute nightmare. We had sellers last year who had them, and it created absolute chaos. They are very expensive, typically paid for overtime and expensive to remove. Lastly, according to those sellers, the savings was not substantial, so it was not worth it.
• The theory of solar panels is great, but the installation sounds as though it would be a bit unsightly from the street. My concern would be that, despite the power benefits, the curb appeal would be negatively impacted. As we all know people shop houses with their eyes first, I’m not sure how one would mitigate that issue. I believe that the negative visual impact would override the power savings.

For additional input on solar and renewable energy, take a look at this recently published article from the New York Times, The Next Energy Battle: Renewables vs. Natural Gas

[divider height=”30″ style=”default” line=”default” themecolor=”1″]