How to Sell a Home with Solar Panels in Minnesota

Key Takeaways

• Homes with solar panels sell for approximately 6-7% more than comparable homes without solar

• Owned systems transfer more simply than leased or financed systems

• Warranty transfers require documentation and sometimes manufacturer notification

• Net metering agreements with Minnesota utilities may need to be transferred to the new owner

• Preparing documentation in advance makes the closing process smoother

Solar Panels Add Value to Your Home

Multiple studies confirm that solar panels increase home value. According to a 2024 study by SolarReviews analyzing over 400 home sales, homes with solar sold for approximately 6.9% more than comparable homes without solar systems. This is a notable increase from Zillow's 2019 finding of 4.1%.  

On a $400,000 home, that translates to roughly $24,000-$28,000 in additional value.

Buyers recognize the value of lower electricity bills. In Minnesota, where heating and cooling costs add up, the appeal of reduced utility expenses is significant.

The actual premium depends on several factors including the age and condition of your system, its size relative to the home's energy needs, local electricity rates, and whether the system is owned or financed.

Owned Systems Transfer Most Simply

If you purchased your solar system outright or paid off the loan, the transfer is straightforward. The panels are part of your home, just like the furnace or water heater.

When you sell, the system transfers with the property. There is no separate agreement for the buyer to sign or assume.

You will need to:

• Provide documentation of the system including size, equipment, and installation date

• Transfer warranty coverage to the new owner

• Update the net metering agreement with the utility to the new owner's name

• Provide monitoring account credentials or transfer the account

Most equipment warranties are transferable. Contact your installer and the equipment manufacturers to understand the transfer process. Some require written notification. Others transfer automatically.

Financed Systems Require More Steps

If you have an outstanding loan on your solar system, you have options.

Pay off the loan at closing. The most common approach is to pay the remaining balance from the sale proceeds. This clears the lien and allows clean transfer of the system with the home.

Have the buyer assume the loan. Many solar loans are not assumable, though some lenders do allow loan assumption with their approval, and the buyer must qualify. Not all lenders allow assumption.

Negotiate a credit. In some cases, you might reduce your asking price to account for the loan balance while the buyer arranges their own financing.

If your solar system has a UCC-1 filing (a type of security interest), this will appear during the title search. Most lenders require this to be resolved before closing. Talk to your real estate agent and title company early in the process.

Leased Systems and PPAs Are Different

If you lease your solar panels or have a Power Purchase Agreement (PPA), you do not own the equipment. A third party owns the system and you pay them for the electricity it produces.

Selling with a lease or PPA typically means:

Transfer the agreement to the buyer. The new homeowner takes over your lease or PPA payments. The leasing company must approve the transfer, and the buyer must agree to the terms.

Buy out the lease. You can often pay to terminate the lease early and then either include the now-owned system with the home or have it removed.

Have the system removed. If the buyer does not want to assume the lease and you do not want to buy it out, the leasing company may remove the equipment. This is generally the least desirable outcome.

Leased systems can complicate sales. Some buyers hesitate to take on a monthly payment obligation. Being prepared to explain the terms and benefits of the lease helps.

Minnesota Utility Considerations

Net metering agreements in Minnesota allow you to send excess solar production to the grid in exchange for credits. When you sell, this agreement needs to transfer.

Xcel Energy requires notification when the property changes hands. The new owner must establish their own net metering agreement. Credits typically do not transfer to the new owner, so time your sale to minimize unused credits on your account.

Other Minnesota utilities including rural cooperatives have their own policies. Contact your utility to understand the transfer process.

Your installer can often help coordinate utility paperwork during the sale.

Documentation to Prepare

Having organized documentation makes the sale process smoother and builds buyer confidence.

System information packet including:

• System size and production estimates

• Equipment specifications (panel brand/model, inverter type)

• Installation date and installer contact information

• Interconnection agreement with the utility

Warranty documentation including:

• Panel manufacturer warranty

• Inverter warranty

• Installer workmanship warranty

• Any extended warranties or service plans

Production history shows actual energy generation over time. Your monitoring app or account can provide this data.

Financial records including:

• Original purchase price or contract terms

• Loan payoff amount if applicable

• Utility bills showing energy savings

Working with Real Estate Professionals

Not all real estate agents have experience selling homes with solar. When selecting an agent, ask if they have handled solar home sales before.

An experienced agent can:

• Accurately represent the value of your solar system

• Explain solar benefits to potential buyers

• Help navigate documentation and transfer requirements

• Connect with title companies familiar with solar transactions

If your agent lacks solar experience, consider providing them with educational materials or connecting them with your installer for support.

What Greenway Recommends

At Greenway Solar, we support our customers through the full lifecycle of their solar systems, including when they sell their homes.

If you are a Greenway customer preparing to sell, contact us. We can provide documentation of your installation, assist with warranty transfers, and help your real estate agent understand the system.

For buyers purchasing a home with a Greenway-installed system, we are happy to answer questions about the equipment and explain how to access monitoring and support.

FAQs

Will I owe taxes on the increased value from solar?

Solar improvements are generally treated like other home improvements for tax purposes. The value they add becomes part of your home's basis. Consult a tax professional for your specific situation.

What if the buyer does not want the solar panels?

This is rare because solar typically adds value. If a buyer truly does not want the panels, you could negotiate a price reduction, but removal and reinstallation elsewhere is expensive and usually not practical.

Can I take my solar panels to my new home?

Technically possible, but rarely practical. Removal costs, potential damage, roof repairs, and reinstallation at the new location make this expensive. In most cases, leaving the panels and installing a new system at your new home makes more financial sense.

What happens to my tax credit if I sell?

If you claimed the federal solar tax credit, that benefit stays with you. It does not transfer to the buyer or get recaptured when you sell.

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Sell Your Solar Home with Confidence

Solar panels are an asset that adds value to your home. With proper documentation and preparation, the selling process can be straightforward.

At Greenway Solar, we help our customers navigate solar ownership at every stage, including when it is time to move on. Contact us if you have questions about preparing your solar home for sale.