H
omeowners often believe that leased or loaned solar panels will raise their property’s value, but the debt that comes with them can actually erode equity.

    The real estate market is already complex; adding rooftop solar introduces technicalities that many agents and sellers overlook.

    Greg Field, a Homesmart solar‑focused realtor with nearly twenty years in renewable energy, says most realtors lack a deep understanding of the nuances involved. “There are so many subtleties to rooftop solar that most agents don’t grasp,” he told *pv magazine USA*.

    A common scenario is a residential system that comes with a grandfathered buy‑back. The next buyer must take on the same rate plan as the original owner, which can lock them into a contract that diminishes both the system’s and the home’s value over time.

    Many clients assume that taking out a loan for a solar system means they own the equipment and that it will add value when the home is appraised. Field explains that loaned solar actually adds debt, not equity. In today’s lending environment, lenders prefer a buy‑out rather than a loan transfer. “From the seller’s perspective, it’s a conversation about whether you can afford to lose that equity and pay off the loan to sell,” he said. This misunderstanding can leave homeowners underwater.

    Whether solar is a benefit or a burden depends on the rate lock. A home two years into a lease with a 3% annual escalator offers little advantage against the utility, especially as rates rise. Such deals won’t hold up well. Conversely, a system with a 10‑cent locked‑in rate and no escalator can provide a “phenomenal” value against the utility.

    Owned systems can be listed as assets, but recent changes to residential solar tax credits may alter that calculus. “Homes that already have solar will be slightly more valuable next year,” Field noted.

    Agents often lack clarity on the appraisal value of owned versus leased or loaned systems, leading to improper listings or hidden solar features. “Because most agents aren’t comfortable with the topic, they don’t discuss it enough,” he said. “A realtor might show the house but keep the solar in their back pocket, creating a sticking point.”