Solar Panels – Conventional Loans When Do They Add Value to Your Property?

Before you buy or sell a home with solar panels, it is essential to understand how lenders and appraisers consider property value based on how the panels were purchased or financed.

Will Solar Panels Always Add Value to a Home?

Most people assume that a home with solar panels will add resale value to a home.  Sometimes this is true, and sometimes the value is in the amount of money they will save the homeowner on utility bills. Homebuyers and Sellers should understand how conventional lenders evaluate the "value-added" for solar panels before purchasing or selling a home!

If the Solar Panels are…

Then the appraiser…..


  •   Owned
  •   Cash purchase
  •   Consumer debt not collateralized by solar panels. [i.e., Credit Card, Personal Loan]
  •   Debt is paid off.

May Include the Solar Panel Value based on standard appraisal requirements.


Financed as a "Fixture" to the Real Estate

May Consider the solar panels in the property's value, provided that the panels may not be repossessed for default on the financing.


Financed as "Personal Property"

May NOT provide the solar panels' contributory value towards the appraised value because the panels are collateral for another debt.

Leased or Covered by a Power Purchase Agreement

May NOT include the value of the solar panels in the appraised value of the property.

Before you Purchase or List a Home with Solar Panels, Let's Talk First

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.