Selling a home with solar panels

Most solar systems last longer than the average time people stay in one house. So it is sensible to ask what happens if you sell. The honest answer is that owned solar is generally a plus for buyers, but how much it adds to the sale price is uncertain, especially in Canada. Good paperwork and clear ownership matter more than the panels themselves.

What the evidence says about home value

Most research on solar and home prices comes from the United States.

• Berkeley Lab (2015) studied about 23,000 home sales across eight US states from 2002 to 2013, about 4,000 of them with solar. Buyers paid an average premium of about US$4 per watt of solar, roughly US$15,000 for an average 3.6 kW system at the time.
• Zillow (2019) found that US homes with solar sold for about 4.1% more than comparable homes over one year, with the premium varying by city.
• Fannie Mae research found that premiums for owned systems dropped significantly over its study period in four states as solar became cheaper and more common, and that leased systems added little or no value.

Canadian evidence is limited. We haven't found a large, published Canadian study measuring solar home premiums, so treat any specific Canadian percentage you see with caution. US results may not carry over, because electricity prices, net metering rules and buyer familiarity differ.

A reasonable way to think about it: an owned system that clearly lowers electricity bills makes a home more attractive, and some buyers will pay for that. Don't count on getting your full installation cost back in the sale price, especially early in the system's life.

Owned, financed and leased systems

How you paid for the system matters a lot when you sell. Our guide on buying, leasing or financing covers the options in more detail.

If any kind of financing or lease is involved, tell your real estate agent and lawyer early. Surprises found during a title search can delay closing.

Transferring warranties

Panels, inverters and installer workmanship each have separate warranties. Before listing:

1. Find all warranty documents and the installer's contract.
2. Check whether each warranty transfers to a new owner automatically or needs registration or a fee.
3. Note how many years remain on each.
4. Give the buyer copies, along with any manufacturer registration details.

A string inverter that is near the end of its warranty is a fair question for a buyer to raise. See how long solar panels last.

The utility agreement and net metering credits

Your net metering or connection agreement is with your local utility and is tied to you as the account holder. When the house changes hands, the buyer will usually need to open their own account and complete the utility's paperwork to keep the system on net metering. Ask your utility how this works and what happens to any credits on your account, because banked credits generally don't transfer to the buyer. Our guide on what happens to net metering credits explains more.

If your system took a rebate that comes with conditions, such as Ontario's HRSP rule that the system can't join net metering, tell the buyer.

What buyers and their agents ask for

Pull these together into a folder before you list:

• Original contract and invoice, with system size in kW and equipment models.
• Building permit and electrical inspection certificate.
• Utility connection approval and net metering agreement.
• All warranty documents.
• At least 12 months of production data from your monitoring app, compared with your original estimate. See solar monitoring and what to watch.
• 12 months of electricity bills showing the savings.
• Login details or transfer instructions for the monitoring app.
• Any lease or financing documents, and the payoff amount.
• Roof age and any roof work done since installation.

Real data beats claims. A buyer who sees a year of bills and production numbers can judge the value for themselves.

Talking to your agent and appraiser

Make sure your listing describes the system accurately: owned or leased, size, age and typical annual savings. Appraisers may not give solar much weight unless you provide documentation, so hand it over. An agent with experience selling homes with solar can help present it well.

If you might sell soon

If you expect to move within a few years, think carefully before installing. Payback in most of Canada takes over a decade in our model, and you might not recover your full cost in the sale price. That doesn't mean don't do it, just that the decision should make sense even if the sale premium is small. See how solar payback works.

Next step

See your payback period and decide whether the timeline fits your plans: check your roof.

Common questions

Do solar panels increase home value in Canada?

US studies have found price premiums for homes with owned solar, but Canadian evidence is limited. Expect owned panels to help a sale, but don't count on recovering the full cost.

What happens to leased solar panels when I sell my house?

The buyer usually has to take over the lease and qualify with the leasing company, or you need to buy out the lease. Talk to your agent and lawyer early.

Do solar warranties transfer to a new owner?

Many do, but some need registration or a fee. Check each panel, inverter and workmanship warranty before you list.

Do net metering credits transfer when I sell?

Generally no. The buyer sets up their own utility account and agreement. Ask your utility what happens to your banked credits.

Sources

• Berkeley Lab: Selling Into the Sun, price premium analysis of a multi-state dataset of solar homes (OSTI)
• Zillow Research: Homes with solar panels sell for 4.1% more (2019)
• Fannie Mae: Solar at High Noon, solar home premiums in a rapidly maturing market