I am listing a home that has added a expensive Solar Panel system and now the owners want to sell the home. There are no comparables in the market  that have a system like this. We want to add the value of the system to the home, but I think the market may not support the price adjustment. Idea how to market the solar panel and how to adjust the value of home?  They pay no power bill, but pay a payment on a contract for the solar panels.

Are the panels leased or owned? I sat on a committee to write green standards for the national appraisal institute and we wrote a white paper addressing issues such as this

They are purchased but a loan through the solar company for another 19 years

@Mark Dance

Hi Mark,

How big of a system are we talking about? Are you in an area where the power company aren’t going to change the rules soon? I work for the power company in my area and rates are changing to the point where the solar peak periods are becoming the cheapest rate. That’s a problem when you used to get $0.25/KHW and now it’s $.16/KWH for your generation.

In regards to marketing I would definitely provide cost comparison with and without solar and let that be the main marketing tool you use to convince someone of the benefit. Once it’s paid off it’s pure profit so would need to figure out how many years out that would be based off how much you’re saving on the power bill. As for price adjustment I would see how much is still left on the loan with the solar company and what a new system of equivalent size would cost to install today and price accordingly.

Here go a few helpful links:

https://www.pvvalue.com

https://www.appraisalinstitute.org/professional-practice/professional-practice-documents/green-energy-efficient-addenda/ 

Another option is to redeploy their system at their new place.  When I worked at Tesla we often would design systems using the existing equipment and transfer it from the old house to the new house when people moved. However, if that is not feasible or desirable, since your system is on a loan, not a lease, your in a better spot.  The cost of the system should be recognized in the appraisal and you should command a market premium for a green home.

A helpful article:

https://www.solarpowerworldonline.com/2018/09/does-solar-increase-home-value/

Thanks for the feedback. The couple will not be taking the system to their next place as they are downsizing. Right now the system pays all their electric bill each month. So no utility bill but just the payment on the system. I believe the solar panel company set it up that way. 

What about just paying off the solar loan now, and then marketing with free utility bills and no other fees starting NOW?  

What percentage of the total house value are we talking? If the solar loan balance is something like 5% of total house value, then just pay it off. If it's higher, then maybe that's not such a good idea.

Originally posted by @Mark Dance :

I am listing a home that has added a expensive Solar Panel system and now the owners want to sell the home. There are no comparables in the market  that have a system like this. We want to add the value of the system to the home, but I think the market may not support the price adjustment. Idea how to market the solar panel and how to adjust the value of home?  They pay no power bill, but pay a payment on a contract for the solar panels.

 Where is the home located?