Going solar is a smart decision for homeowners looking to lower their electricity bills, reduce their carbon footprint, and increase their home value. But what happens if you move after installing solar panels? Many homeowners worry about how their solar investment will impact the sale of their home or their financial obligations. The good news is that solar is a valuable transferable asset that can benefit both sellers and buyers.
In this article, we’ll explore your options for handling your solar loan, how solar can increase your home’s resale value, and how you can still take advantage of solar tax benefits—even if you move soon after installation.
Managing Your Solar Loan When Moving
You have options when it comes to paying for your new home solar system. While some homeowners choose to pay cash in order to maximize savings, many opt to finance through a solar loan with affordable monthly payments. If you paid for your system in full upfront or have paid off the full balance of your solar loan, the solar panels will simply be included in the selling price of the home and ownership will be transferred to the new buyer.
If you financed your solar panels and have a remaining balance on the loan, you have two main options when selling your home:
- Pay Off the Loan at Closing: Most homeowners choose to pay off their solar loan with proceeds from the home sale. Since solar panels increase home value (more on that below), you can often recoup your investment when you sell, and this decision often simplifies the closing process.
- Transfer the Loan to the Buyer: Some lenders allow the solar loan to be transferred to the new homeowner, provided they meet credit qualifications. This can be an attractive option for buyers who recognize the value of an energy-producing home, and does not require the seller to pay off the balance of the solar loan.
How Solar Increases Home Value
One of the biggest advantages of installing solar panels is that they add significant value to your home. Numerous studies have shown that solar-equipped homes sell for more than comparable non-solar homes:
- Zillow Study: A widely-known 2019 study by Zillow found that homes with solar panels sell for 4.1% more on average than those without. That means for a $500,000 home (the average new home sales price as of January 2025), solar could add more than $20,000 to the sale price.
- SolarReviews: The housing market has changed significantly since 2019. This more recent study by SolarReviews predicts a 6.8% increase, or about $33,000 based on the average US home sales price.
- National Association of Realtors: in the NAR's 2023 Sustainability Report, 34% of realtors surveyed said that properties with solar panels were perceived as more valuable to buyers.
Not only do solar homes have a higher resale value, but they also tend to sell faster. Buyers appreciate the potential for lower electricity bills, increased energy independence, and the long-term financial benefits of solar.
Christian Markuson, Head of Sales for 515 Solar, explains it this way: "Imagine seeing two identical cars for sale on a lot. One of them comes with free gasoline for life, and the other doesn't. The car with free gasoline for life is going to sell faster and for a higher price than the other car. That's a lot like selling a home with a solar panel system; the new homeowner will have a low (or non-existent) electricity bill for decades to come and save thousands per year while their neighbor's utility bills continue to rise. That's why solar-powered homes sell faster and for a higher price than their counterparts."
Claiming Tax Benefits Even If You Move
Even if you plan to move shortly after installing solar panels, you can still take advantage of federal and state solar incentives. The Federal Solar Tax Credit (Investment Tax Credit or ITC) allows you to recoup 30% of your solar panel system and installation costs as a direct credit toward your federal taxes.
Here’s how it works:
- The tax credit is available for the year your system is installed.
- Even if you sell your home shortly afterward, you still get to claim the credit.
- You can claim the credit whether you finance your system or pay in cash.
Learn more about the Federal Solar Tax Credit in this comprehensive article.
Many states also offer rebates, incentives, and tax credits that you can claim regardless of how long you stay in the home. Be sure to check local policies to maximize your savings.
Transferring the Solar Warranty to the New Homeowner
One important aspect of selling a home with solar panels is ensuring that the system’s warranty is transferred to the buyer. Most solar panel manufacturers and installers offer warranties that cover equipment, performance, and workmanship for 20-25 years. A transferable warranty can add value to the home and provide peace of mind to the new owner. Contact your solar installer before selling to verify the transfer process, complete any necessary paperwork, and provide the new homeowner with documentation on the system's warranty.
Conclusion: Solar is a Smart Investment—Even If You Move
Moving after installing solar panels doesn’t mean you lose out on your investment. Whether you pay off your loan or transfer it to a new homeowner, your solar system adds value to your home, helping you sell faster and at a higher price. Studies consistently show that solar increases home resale value and makes properties more attractive to buyers. Plus, you still get to benefit from tax incentives, even if you move soon after installation.
If you're considering solar but worried about relocating, rest assured that solar remains a wise financial decision that pays off no matter where life takes you.
