Buying House with Solar Panels: Your Complete Guide

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Are you interested in reducing your carbon footprint and saving on energy costs? Consider buying house with solar panels! Not only will you enjoy significant savings on your energy bills, but you will also increase your home’s value in the real estate market. 

Our comprehensive guide takes you through the environmental and financial benefits of solar-powered homeownership, providing practical tips to help you find the perfect solar-equipped home. Ready to make the eco-friendly and cost-effective move? Explore the journey of buying a house with solar panels for a greener lifestyle.

Benefits of Buying a House with Solar Panels Already Installed

Benefits of Buying a House with Solar Panels

There are numerous benefits associated with purchasing a house that comes with solar panels. These benefits include: 

  1. Reduced Energy Bills: Solar panels harness the sun’s energy, providing free electricity and resulting in significant savings over the lifetime of the system. 
  2. Increased Home Value: Studies have confirmed that homes featuring solar panels command higher prices in the real estate market, adding intrinsic value to your property. 
  3. Environmentally Friendly: Solar panels produce no greenhouse gases during electricity generation, and hence contribute to an eco-friendly lifestyle. They help you reduce your carbon footprint and make a positive environmental impact. 
  4. Tax Incentives: In addition to savings, explore potential tax incentives that further enhance the financial appeal of solar-powered homeownership. 
 

By buying a house with solar panels, you make an investment that not only slashes your energy costs but also elevates your home’s value. Moreover, you champion environmental sustainability by embracing the advantages that come with solar-powered homeownership.

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Solar Panel Efficiency Over Time

Solar energy starts with the sun.  Also known as “PV panels,” solar panels take in light from the sun, which is comprised of energy particles called “photons,” and convert it into usable electricity that can power all kinds of appliances and functions.  You can use solar panels for a broad

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How to Find a House with Solar Panels

If you’re looking to purchase a home equipped with solar panels, here are some steps to guide you in finding one that suits your requirements.

Online Search

Start by exploring online platforms dedicated to listing homes with solar panels. Websites like Solar Homes and Zillow specialize in such listings. Additionally, real estate platforms like Realtor.com and Trulia often feature homes with solar installations.

Contact Real Estate Agent

Once you identify potential homes, reach out to the respective real estate agents for more information about the solar panels. Inquire about the system’s size, the type of solar panels used, and the estimated annual savings. Request contact details for the solar company responsible for the installation.

Home Visit and Homeowner Inquiry

If possible, visit the property to inspect the solar panels in person. While there, speak with the homeowner to gather insights into their experience with the system. Ask about energy bill savings and whether they encountered any issues with the solar panels.

Professional Inspection 

Consider obtaining a professional inspection of the solar system before finalizing your decision. This step ensures that the installation is sound and helps identify any potential issues that might require attention.

Additional Tips:

  • Enlist the assistance of your real estate agent in locating homes with solar panels.
  • Verify local building codes to confirm that solar panels are permitted in your area.
  • Assess the size of the solar system based on your energy needs.
  • Prioritize a professional inspection of the solar setup before committing to the purchase.

Increase Home Value with Impact Energy

If you're interested in not only incorporating solar panels into your new home but also increasing its overall value, consider reaching out to Impact Energy. Their solar installation services are designed to enhance both energy efficiency and property value. Contact Impact Energy to explore how solar panels can contribute to a greener lifestyle and a more valuable home.

Have Solar Questions?

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The Cost of Buying a House with Solar Panels

cost of house solar

As of January 2024, the average cost of a solar panel system, including installation, in Denver, CO is $3.34/W. For a 5 kW installation, this translates to approximately $16,712 before incentives. However, prices may vary between $14,205 and $19,219. Following the federal tax credit, the average price experiences a 30% reduction.

The expense associated with buying a house with solar panels can fluctuate based on factors such as the system’s size and efficiency, local solar incentive programs, and the current market value of the home. Generally estimated, a solar panel system contributes between $10,000 and $20,000 to the overall home cost.

Several factors influence the cost of a solar panel system:

  1. System Size: Larger systems tend to be more expensive.
  2. Panel Efficiency: Higher efficiency panels incur greater costs but generate more electricity.
  3. Local Incentive Programs: Some states and local governments provide rebates or tax incentives for solar panel installations.
  4. Market Value of the Home: Homes with solar panels typically command a higher selling price compared to those without.
 

It’s crucial to recognize that the cost of a solar panel system is a long-term investment. Over the years, solar panels can yield substantial savings on energy bills and contribute to an increase in the resale value of homes.

When contemplating the purchase of a house with solar panels, it’s essential to factor in the system’s cost. Nevertheless, it’s equally important to acknowledge the enduring savings, making solar panels a highly worthwhile and eco-friendly investment.

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How much does it cost to install solar panels
How Much Does It Cost To Install Solar Panels? (2024 Guide)

Climate change is changing the world on a physical level never before seen during remembered human history. It has become painfully obvious that human reliance on fossil fuels must decrease dramatically as quickly as possible. Even formerly renewable, power-generation sources, such as hydroelectric dams, can’t be relied upon to meet

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Financing a Home with Solar Panels

Financing a Home with Solar Panels

Opting to finance a home with solar panels can be a smart choice to cut down on energy expenses and promote sustainability. However, it’s crucial to comprehend the various financing options available before reaching a decision. The two primary financing alternatives for solar panels are:

  1. Installment Loans:
  • With an installment loan, you borrow funds from a lender to cover the upfront cost of your solar installation.
  • Subsequently, you make monthly payments over a specified period, typically ranging from 10 to 20 years.
  • This option is suitable for those with good credit and the ability to make a down payment.
  1. Solar Leases and PPAs (Power Purchase Agreements):
  • In a solar lease or PPA, you agree to pay a monthly fee to a solar company for utilizing their solar panels.
  • The solar company owns and maintains the panels, and you enjoy the benefits of solar energy without the need for a personal investment.
  • This option is advantageous for those without good credit or the means for a down payment.
 

The optimal financing choice depends on your financial situation and preferences. Consider the following factors when deciding on a financing option:

Your Budget

  • Account for the varying costs of solar installations and align them with your budget.
  • If budget constraints exist, a solar lease or PPA may be a more financially viable option compared to an installment loan.

Your Credit Score

  • A higher credit score may secure a lower interest rate on an installment loan, resulting in potential long-term savings.

Your Preferences

  • Assess whether you prefer ownership of the solar panels or the convenience offered by a solar lease or PPA.
  • Individual preferences play a significant role in determining the most suitable financing option.
 

If uncertain about the best financing option for your needs, consulting with a solar installer or financial advisor is advisable. They can provide valuable insights, assist in comparing options, and help you make an informed decision tailored to your requirements.

Tax Incentives for Buying House with Solar Panels

As you embark on the journey of purchasing a home equipped with solar panels, it’s essential to recognize the substantial financial advantages facilitated by federal and state tax incentives. These incentives are strategically designed to not only reduce the financial burden of solar installations but also enhance the overall appeal of integrating solar power into your new home.

Federal Tax Incentives

  1. Solar Investment Tax Credit (ITC):
    • This prominent 26% tax credit is a considerable incentive for homebuyers looking to invest in solar energy. The ITC applies to both the purchase and installation of solar panels.
    • Be mindful of the gradual reduction, with the credit decreasing to 22% in 2023 and 10% in 2024, emphasizing the importance of timely adoption.
  2. Residential Energy Efficient Property Credit (REC):
    • A 10% tax credit specifically tailored for energy-efficient improvements, including solar panels, further bolsters the appeal of solar-equipped homes.
  3. Mortgage Interest Deduction:
    • Those financing their solar installation through a loan may leverage the mortgage interest deduction, providing an additional financial incentive.

State Tax Incentives

Complementing federal benefits, individual states offer an array of incentives that enhance the financial attractiveness of homes with solar panels:

  • Tax Rebates: Some states provide direct cash incentives or rebates, reducing the initial costs of solar installations for potential homebuyers.
  • Property Tax Exemptions: Homebuyers can benefit from exemptions or reductions in property taxes, offering ongoing financial advantages tied to the solar investment.
  • Sales Tax Exemptions: Certain states exempt the purchase of solar equipment from sales taxes, providing an additional layer of financial appeal for those considering a solar-equipped home.

How to Claim Your Incentives? Read More

Colorado Solar Incentives

Colorado Solar Incentives Call 719-204-3015 Colorado Solar Tax Credits, Incentives and Rebates (2023) A solar installation is more affordable than ever, with several solar rebate programs available. Federal Solar Investment Tax Credits The Federal Residential Solar Energy Credit rewards homeowners for investing in solar installations. With this, you can claim

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Have Solar Questions?

Call the Denver Solar Experts:

As you explore the realm of buying a house with solar panels, embracing these tax incentives becomes a strategic step not only towards a greener future but also a financially savvy investment in a home with long-term benefits.

Maximizing Potential Resale Value when Buying a House with Solar Panels

How Maximizing Potential Resale Value

When you’re planning to buy a home that has solar panels, it’s important to think about how it might affect the value of the property when you decide to sell it. Generally, homes with solar panels tend to sell for higher prices than those without them. However, the actual amount of increase depends on various factors, such as the size and effectiveness of the solar system, how old it is, where the property is located and the current market conditions.

  • Solar System Size and Efficiency: Opt for homes with larger and more efficient solar systems to ensure a higher resale premium.
  • Age of the Solar System: Prefer newer systems, as they generally contribute to a greater premium compared to older counterparts.
  • Location of the Home: Homes in sun-drenched areas with elevated electricity rates tend to command higher premiums than those in less sunny regions with lower rates.
  • Market Conditions: The strength of the real estate market at the time of resale plays a pivotal role in determining the premium.
 

Generally, homes with modern and efficient solar systems in sunny locales with high electricity rates tend to secure the highest premiums, particularly in robust real estate markets.

According to a National Bureau of Economic Research study, homes with solar panels sell for an average of $15,000 more than comparable homes without solar panels. Location nuances, however, significantly impact this premium variation. In California, the premium reaches an average of $20,000, while in Texas, it’s $10,000, and in Florida, it’s $5,000.

Importantly, the decision to buy a home with solar panels becomes an investment not only in sustainable energy but also in potential financial returns during resale. While the actual premium is influenced by several factors, including those listed above, confidence can be derived from the expectation that you are likely to recoup a portion of your solar investment when selling the property.

Embrace Solar Energy: A Vital Element in Your Home Buying Journey!

The future of solar energy is incredibly promising, presenting an exciting prospect for those considering buying a house with solar panels. The affordability of solar power is on the rise, leading to an increasing number of homes integrating solar panels into their designs. As the cost of solar panels continues its downward trend and awareness grows regarding the environmental benefits of solar energy, the demand for solar panels is expected to surge.

  • Government Incentives Brightening Your Path: Discover a brighter future with the help of government incentives. In the United States, the federal government provides significant tax incentives for homeowners who install solar panels – an opportunity for potential homebuyers to save thousands on their solar installation costs.
  • Environmental Consciousness in Home Buying: Make a conscious choice for a cleaner planet in your home buying journey. With heightened awareness of the environmental impact of fossil fuels, individuals are seeking ways to reduce their carbon footprint. Buying a house with solar panels aligns with this eco-friendly movement, offering a clean, renewable energy source without emissions.
  • Technological Advancements Tailored for Your Home: Stay ahead with the latest in solar technology. Ongoing technological advancements are making solar panels more efficient and affordable, creating an economically sound option for homebuyers looking to integrate solar energy solutions.
  • Seize the Solar Momentum in Your Home Purchase: As the cost of solar panels continues to decrease, and environmental consciousness rises, the demand for homes with solar panels is set to soar. Solar energy is undeniably the future of our energy needs, and the time to prepare for this transition is now.
 

Thinking about upgrading your home with solar panels? Contact the Denver solar panel experts at Impact Energy today!

FAQs: Buying a House with Solar Panels

Purchasing a home with solar panels offers several advantages, including reduced energy bills, increased home value, environmental friendliness, and potential tax incentives.

Homes with solar panels often command higher prices in the real estate market due to factors such as reduced energy costs, eco-friendly features, and the potential for tax incentives.

Start your search online on platforms like Solar Homes, Zillow, Realtor.com, and Trulia. Reach out to real estate agents for detailed information, visit the properties, and consider professional inspections.

The cost is affected by the system’s size, efficiency, local solar incentives, and the current market value of the home. Factors such as larger systems, higher panel efficiency, and favorable local incentives may increase the cost.

Two primary financing options include installment loans and solar leases/PPAs. Installment loans involve borrowing money for the upfront cost, while solar leases/PPAs allow you to pay a monthly fee to a solar company for using their panels.

Federal tax incentives, such as the Solar Investment Tax Credit (ITC) and Residential Energy Efficient Property Credit (REC), provide significant financial benefits. State incentives, including tax rebates, property tax exemptions, and sales tax exemptions, enhance the overall financial appeal.

Homes with solar panels generally sell for higher prices, with factors like the size and efficiency of the solar system, its age, location, and prevailing market conditions influencing the actual premium. Purchasing a home with solar panels becomes an investment in both sustainable energy and potential financial returns during resale.

Opt for larger and more efficient solar systems, prioritize newer installations, consider the location of the home, and be mindful of market conditions. The decision to buy a home with solar panels becomes an investment in both sustainable energy and potential financial returns during resale.

The future of solar energy is bright, with increasing affordability, growing awareness of environmental benefits, and ongoing technological advances. Government incentives, coupled with a rising demand for cleaner energy sources, contribute to the promising trajectory of solar-powered homeownership.

Impact Energy offers solar installation services designed to increase both energy efficiency and property value. Contact them to explore how solar panels can contribute to a greener lifestyle and elevate your home’s overall value.

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