Installation of rooftop solar panels is a growing trend among modern homeowners in India. In the recent years, there has been a growing awareness about sustainability and its importance in home design and building construction. Solar energy is one of the renewable sources of energy, which can be harnessed by installing solar panels on rooftops. The government is also encouraging the adopting of solar power by providing various incentives. One of the key advantages of having a house with solar panels is the increase in property value. The property owners can look forward generate a significant rental income or high returns by selling such properties. In this guide, we share tips for selling a house with solar panels.
What are solar panels?
Solar panels are devices designed with an assembly of solar cells that convert sunlight into electrical energy. These cells are made of semiconductor materials, such as silicon. The system includes other elements like an inverter, AC/DC switches and electrical conduit. When sunlight falls on the cell, electricity is generated. The inverter converts direct current (DC) into alternating current (AC) used for operating electrical appliances and devices.
Benefits of having a house with solar panels
- Cost savings: While the property owner will incur an initial cost for the installation of solar panels, they can look forward to significant savings on the monthly electricity bills in the long run.
- Sustainability: While installing solar panels in homes helps in cost savings, it is a step towards sustainability. Solar energy is a clean energy source and has no harmful emissions, thus contributing towards reduced carbon footprints.
- Incentives by the government: Many Indian states provide subsidies on installation costs and net metering policies. Net metering is beneficial for property owners as one earns credits by sending unused electricity back to the grid, thus saving on future energy costs.
- Increased property value: Solar panels increase a property’s resale value. It helps attract better prices and sells faster. Generally, residential properties with solar panels see around 4.1% increase in their resale value. In some regions, the percentage is even higher.
- Enhance visual appeal: Buyers look at properties with solar panels as more appealing and modern compared to traditional properties. It reflects a more environmentally conscious and contemporary lifestyle.
- Technological advancement: Today, modern solar panels are designed to be more efficient, durable, and easily blended into residential architecture, creating a seamless look.
Tips to sell a house with solar panels
#1. Inspect the solar panels
Typically, property sellers allot a specific budget and undertake the task of home staging, the process of preparing the house for sale. When conducting an inspection of the property, make sure to check if the panels are cleaned and in proper working condition. As a homeowner, one should invest in preventive maintenance. Cleaning the panels is necessary to ensure they operate with full efficiency as dust, leaves, etc. can obstruct the sunlight falling on these panels. Take necessary steps to prevent birds from building their nest below these panels. One can check and hire professional inspection services or contact the solar provider for the same.
#2. Highlight the solar panel features
Typically, property owners showcase the best features of their properties to prospective buyers. Whether you are selling a property online or offline, make sure to talk about the features of the solar panels. This includes:
- The manufacturer’s warranty coverage and duration
- Any major upgrades like advanced monitoring software or added panels for increased energy production
- Details of the warranty covering the solar panel system
- Financial incentives available, such as net metering or energy credits
- Significant savings on electricity bills and an increase in property value
To prevent potential damage to these panels, the property owner can construction a shelter. This way, the solar panels will be safeguarded against extreme weather conditions and have a longer lifespan.
Before listing the property with solar panels home, one should ensure compliance with the local regulations for solar power generation, solar panel transfers and property sale in India. This includes getting the required approvals and certifications from local authorities.
#3. Take proper photos for prospective buyers
Posting good-quality images of the property tends to attract more buyers. So, if you are listing your property on an online real estate portal, take professional photos of the solar panels and other areas of the house. Include a good description with the images. Ensure the solar panels are property aligned at the correct angle, where they receive maximum sunlight.
#4. Set the right pricing for the property
When pricing a property for sale, the owner should evaluate several factors, including the locality, property’s age, market trends, facilities available like lifts and car parks, etc. Besides, the presence of solar panels is an added advantage for the seller as they can expect to sell the property at a higher price compared to similar properties in the neighbourhood that do not have solar panels. To determine the right price for your property, one can approach a local broker or get professional services from an established agent.
#5. Address buyer’s questions
During home visits, prospective buyers may have questions about the solar panels. Thus, it is essential for property sellers to have thorough knowledge about solar panels and their features, including the lifespan, maintenance costs, warranties, energy savings, return on investment (ROI), etc.
At this stage, property sellers can help clear the myths associated with solar panels. Many people consider that solar panels come with high maintenance and installation costs. While these initial costs are incurred by the original owner, the buyer can look forward to long-term savings with reduced electricity bills.
#6. Provide supporting documentation
It will also be useful the seller provides any supporting documents such as warranties, performance history, installation records, utility bills or other relevant documents to ensure a smooth transfer process. They can also contact the solar provider to learn the transfer details.
Types of solar panel systems and impact on property sale
- Grid-tied solar panel systems: Grid-tied solar systems, known for being cost-effective and reliable, are connected to the local utility grid and generate electricity during the day. Any excess power is fed back into the grid for credit. Sellers can highlight this feature as the buyer can expect to save on the monthly utility bills.
- Off-grid solar panel systems: Off-grid solar panel systems function independently of the utility grid. They operate on batteries to store excess energy generated during the day for use at night or when sunlight is not available. This system could be a key feature to attract buyers in remote areas without access to the grid.
- Hybrid solar panel systems: These solar panels have features from grid-tied and off-grid systems. While they are connected to the utility grid, they can store energy on battery. This system allows the flexibility of using solar energy in the day, store excess energy for later use while having access to the grid when required. This features help cater to a wide range of buyers.
- Solar Lease or Power Purchase Agreements (PPAs): Some property owners go for solar leases or PPAs. Under this, a third party owns and maintains the system while the property owner pays for the electricity generated at a fixed rate. This arrangement helps minimise the upfront installation costs. However, one should be aware of the transferability of the lease or PPA agreement when selling the house.
When planning to sell a house with solar panels, property owners should know that the type of solar panel system installed on the property can impact the property’s resale value in the market. Some homebuyers may be interested in paying more for a house with a grid-tied system owing to the long-term cost savings. On the other hand, some buyers looking for energy independence may prefer a house with an off-grid system.
Housing.com News Viewpoint
When selling a house with solar panels, sellers should ensure there is clear communication with the prospective buyers. It is also necessary to have all the required documentation in place, including warranties and necessary approvals from authorities. One can approach a legal professional to have a proper understand of the local regulations.
FAQs
Is it difficult to sell a residential property with solar panels?
A seller should be aware of all the features of the solar panel systems. They should have details and documents in place, such as warranties and necessary approvals from authorities. This will help facilitate smooth home sales.
Is transfer of the solar panel contract to the new homeowner necessary?
The transfer will depend on the type of contract. In case of leased or financed systems, one may have to transfer the contract to the buyer. One can approach the solar provider for clarity.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |