What Happens to My Solar System if I Move?

Going solar is great. It saves people money, it’s good for the environment, and it’s the perfect conversation starter for neighborhood block parties.

So, why wouldn’t someone go solar?

For some homeowners, the biggest hang-up is uncertainty around a simple question: What happens if I sell my home?

It’s a good question.

Increased Home Value

One of the lesser-known benefits of going solar is that it can increase a home’s value. Solar homes, after all, have dramatically lower utility bills than comparable houses. That’s worth a lot. So, if someone decides to move, they can simply add the value of the system into the asking price of their home.

There’s lots of evidence to support that solar increases property value.

From 2018-2019, homes with solar energy systems sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274.

The sale premium varies substantially by market. In Riverside, CA, for example, homes with solar energy systems sold for 2.7% more than comparable homes without solar power—a markup of $9,926 for the median-valued home in the metro. In Greater New York City, solar-powered homes have a premium that is double that of Riverside. At 5.4%, that’s an extra $23,989 in value for the typical home in New York. (Source: https://www.zillow.com/research/solar-panels-house-sell-more-23798/)

Most homeowners know that solar panels reduce energy costs and carbon emissions. Those long-term savings help boost your home’s property value. According to the National Renewable Energy Laboratory (NREL), your home value increases by $20 for every $1 you save on energy bills. For example, if your solar energy system saves you $700 per year, the value of your home increases by $14,000.

Real estate agents and home appraisers have found that this also increases your market value when selling your home. A 2021 Zillow housing trends report found that 67% of homebuyers considered energy efficiency to be a “very to extremely important” inclusion for a potential home. Homebuyers are willing to pay $15,000 or more for a solar-powered home, according to a large-scale solar home study conducted by the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab). (Source: https://www.architecturaldigest.com/reviews/solar/do-solar-panels-increase-home-value)

It’s important to understand that these studies mainly look at cases where the homeowner is also the owner of the solar panel system. In other words, a financed solar system, or one paid for with cash, almost certainly adds value to a home. It’s unclear if a third-party owned system (lease or power purchase agreement) will do the same.

Transferability

At Sungage, we want to help as many homeowners go solar as we can. Providing flexibility when a homeowner needs to move is just another way we’re doing that.

The best alternative is to simply use the proceeds of your home sale to pay off your solar loan. Alternatively, your buyer could pay off the remainder of your solar loan or roll it into their new mortgage. With either of these options, you should start by obtaining a payoff quote and allow at least 30 days for the process.

Another option is to have your buyer apply for a transfer of the solar equipment ownership, which may be subject to a processing fee and an increased interest rate.* This will involve a new credit application and will generate a hard credit pull on the applicants’ credit report.

The first step with either alternative is to identify who is assigned to service your loan. Depending on when you secured your financing, it could be either NBT Bank or Launch Servicing. If you are not sure, you can log into the Sungage Homeowner portal and check your loan documents. 

If your servicer is Launch Servicing (most Sungage loans after February 2025) call 877-742-2701 or log into your account management portal to either pay off the loan or transfer it.

If your servicer is NBT Bank (most Sungage loans before February 2025), and you’ve decided to go with the payoff option above, email solarloanservice@nbtbank.com to authorize the action you’ve chosen. The bank will send you a quote via email with terms regarding the release of the equipment lien after the payoff. You’ll also use this email to inform them of your decision. If you’ve decided upon the second option, transferring the solar equipment ownership to your buyer, email loantransfer@sungagefinancial.com to get the process started and allow 30 days for processing.

*All loans and transfers are subject to credit approval and not all will qualify. This material has been prepared for general informational purposes, and we encourage you to review the terms of your particular loan documents to be familiar with loan transfer options that may be available when selling your home. The transfer may be effectuated if the buyer qualifies for a new loan, the proceeds of which would pay off your original loan. The new loan would be subject to a fee and a 5% rate increase not to exceed 9.99%.