If you’re anything like me not a day goes by that you don’t get a call, text, email, piece of mail, or a door knock from a solar salesman at least once a day. If not, multiple times a day! You might be thinking: Is solar actually a good thing if I live in Charlotte, or in the Carolinas in general?  Well, thats exactly what we’ll review today! Our goal is to give you a little bit of direction if you’re thinking of investing in solar panels.

This article is your ultimate guide to navigating the factors you should consider before making a decision. We’ll explore everything from the cost, pros and cons, and some myths and truths. I’ll also give you my perspective as a real estate agent on if you should move forward and get solar. By the end of this article, you’ll have a better understanding of the benefits and potential drawbacks of investing in solar panels, allowing you to make a decision that aligns with your needs and priorities. In this article we’ll cover: 

1. Cost of Solar Panels in North Carolina

2. Pros of investing in Solar Panels

3. Does investing in Solar Panels Add to Your Homes Value?

4. Who Should Invest in Solar Panels 

1. Cost of Solar Panels in North Carolina:

Factors influencing cost of solar panels: home age, size, and sun coverage. Solar panel costs range from $15,000 to $57,000, with an average of $32,500 in North Carolina.   

2. Pros of Investing in Solar Panels

 There are may positives to consider when you look into solar panels. Here’s just a few: 

1. 30% Federal Grant: You get a credit of 30% of the initial cost of the solar panels on your taxes. This can help you offset some of the costs involved in solar. 

2. Selling Unused Energy: You may be able to sell your unused energy back to the grid.  

3. Reduce Electric Bill: You can greatly reduce your electric bill! But remember, Duke Energy charges a fee to be connected to the “grid.” This could run you about $30 a month, no matter what. So you can never eliminate your electric bill, without disconnecting from the “grid.”

3. Does Investing in Solar Panels Add to Your Homes Value?

Now, if you add solar to your home, is it an actual “amenity?” Is it something thats going to increase the value of your home? Well, that depends! Before we identify if solar panels add value, lets review the 4 ways you can get solar panels on your home: 

1. You pay cash for them. 

2. Finance the purchase. 

3. You can lease them

4. Buy a home with solar installed

Selling your home, with financed solar panels:

If you financed your solar panels, you likely have a lien on your home for the balance of your panels. This means that when you sell your home, the buyer’s mortgage company may require the panels to be paid off at closing. But what if you want the buyer to assume your solar lien?

Well, it’s not that simple. Some financing companies do not allow the lien to be transferred to a new buyer, leaving you with the balance to pay off at closing. And even if you can transfer the lien, the buyer may not want to assume the debt obligation.

Why, you ask? It could be that they don’t see the value in solar panels or just don’t want to pay for them. As the seller, you may find yourself not only trying to sell your home but also selling the idea of solar panels to potential buyers. And if the buyer perceives the value of the panels as less than your balance, you may end up working to pay off the remaining debt on your own.

But that’s not all. The buyer may not be able to assume the debt obligation and still qualify to purchase your home. This means you may have fewer potential buyers, which could affect your bottom line.

Selling your home, with leased solar panels:

So, you’ve leased solar panels for your home and are now looking to sell. But wait, there’s a catch. You may not be able to transfer your solar panel lease to the new buyer. This can create a potential headache for your prospective buyer who may not want to assume the lease, or they may not be able to qualify for a mortgage with the added monthly obligation.

Even though the solar panel lease is technically a utility bill, many lenders see it as a monthly debt obligation, which could negatively affect the buyer’s debt-to-income ratio and potentially blow up the deal. This could reduce your pool of buyers, which could affect your home’s sale price and lengthen the time it takes to sell.

To make matters worse, some solar companies do not allow the lease to be assumed by a new buyer. This means that the lease will need to be paid off before you can sell the home. This can be a costly endeavor, and it’s important to consider this before you put your home on the market.

Before making any decisions, consult with a real estate professional who has experience selling homes with leased solar panels. They can help you navigate the potential obstacles and ensure a smooth and successful sale. With the right strategy and the right guidance, you can sell your home with leased solar panels without any headaches.

Selling your home: Can you just remove the panels?

I’m sure many of you are saying “well, I’ll just remove my panels.” You may be tempted to just remove the panels and call it a day, but it’s not that simple. You could run into some unique obstacles that may make you rethink your plan.

First and foremost, removing your solar panels could make your warranty null and void. You’ll need to have the solar company’s team remove the panels, which could come with its own fees. You’ll also need to identify transportation and storage, which could be an added expense. These costs can add up quickly, and you’ll want to consider them carefully before making any decisions.

But that’s not all. Removing your solar panels could also damage your roof. This could be a costly issue that needs to be addressed before you can sell your home. You’ll want to make sure that the roof is repaired properly to prevent leaks and other potential problems. Once again, the cost of repairing the damage is something you’ll want to consider before making any decisions.

So, while removing your solar panels is a viable option for selling your home, it’s not without its potential obstacles. Before making any decisions, consult with a real estate professional who has experience selling homes with solar panels. They can help you navigate the potential obstacles and ensure a smooth and successful sale. With the right strategy and the right guidance, you can sell your home with solar panels without any headaches.

Solar panel salesmen often tout the benefits of solar energy, claiming that investing $40k in solar will increase your home’s value by $40k. But is this really true? Let’s take a look at recent home sales in Mecklenburg County and compare homes with solar panels to those without.

Surprisingly, the price per square foot of homes with solar panels is actually the same as those without. So, while buyers may appreciate solar panels, it’s unlikely that they’ll be willing to spend significantly more for your home over someone else’s.

Sure, solar panels are like having really nice appliances or a pool. They’re things that buyers are going to appreciate and enjoy. But, they’re not going to cause buyers to break the bank to purchase your home.

In fact, appraisers won’t give you a significant bump in sales price for your solar panels. Even if they wanted to, they would need a comparable property that sold significantly higher than other comps, with nothing else being different than the solar panels. And the reality is that there aren’t many solar panel comps out there, so the odds of this happening are slim.

But that’s not to say that solar panels aren’t a valuable investment. They can help you save money on your energy bills and reduce your carbon footprint. Plus, they’re a selling point that can help set your home apart from others on the market. Just don’t expect them to be the sole reason for a higher sales price.

Investing in Solar? Keep these in mind:

1. Warranty: Read the warranty the solar company offers. The warranty’s are not always the same. If you invest in solar, make sure you hire a company that stands behind their quality craftsmanship and their product for 15, 20 and 30 years. 

2. Age of your roof: Typically you want to avoid putting solar panels on a roof that has less than 5 years of life left. 

Who Should Invest in Solar Panels?

There’s plenty of people who would greatly benefit from investing in solar panels.

Here are a few:

1. If you’re looking to stay in your home for 13+ years.

2. If you’re looking to be on a fixed income and want to hedge yourself against inflation and future energy costs.

3. If you’re trying to get off the grid.

4. If you’re looking for a good back up in case of storms.  

5. If you’re trying to make a difference in the green movement.

There are pros and cons to every decision when it comes to solar panels. Whether you’re considering installing solar panels to save money on your energy bills and reduce your carbon footprint, or you’re looking to sell a home with solar panels, it’s important to understand the unique challenges that come with them.

Many solar salesmen only focus on the benefits of solar panels, but the reality is there are potential obstacles that you need to be aware of. From dealing with solar panel liens and leases to understanding the impact of solar panels on your home’s value, there’s a lot to consider.

If you’re looking to sell a home with solar panels, it’s important to partner with a real estate agent who has experience with these types of properties. They can help you navigate the potential pitfalls and ensure a successful outcome.

No matter what your goals are, a professional real estate agent with experience in solar properties can provide you with the information, guidance, and support you need to make the most of your investment. So, whether you’re installing solar panels or selling a home with solar panels, contact a real estate agent who can help you make an informed decision and achieve your goals.