Thinking About Solar Panels? Here's What Homeowners Should Know Before Making the Switch

Chelsea Steen
7 days ago
3 min read

Interest in solar energy has skyrocketed in recent years, and for good reason. With rising energy costs and an increasing focus on sustainability, many homeowners are exploring solar panel installation as a way to save money and reduce their carbon footprint.

In states like Colorado—which ranks 13th in the U.S. for solar installations according to the Solar Energy Industries Association—going solar is more common than ever. But before you make the investment or purchase a home with an existing solar setup, it’s essential to understand the full picture.

💰 What’s the Real Cost of Solar Panels?

Installation costs can vary widely depending on the type, size, and quality of the system. On average, you can expect to spend between $15,000 and $25,000. Be cautious of quotes that seem inflated—some companies may try to charge $30,000–$60,000 for the same setup.

Before you sign a contract, consider:

Monthly loan payments (if financing)
Interest rates
How long you plan to stay in the home
Whether the energy savings will realistically offset the upfront cost

While the energy savings can be appealing, buyers often see solar panels—especially those with loans or leases—as an additional monthly cost. In today’s market, that can be a dealbreaker for some.

🏠 Do Solar Panels Add Value to a Home?

Yes—but maybe not as much as you’ve been told. Some solar companies advertise big boosts in home value, but most appraisers only apply a $5,000–$10,000 value increase—and only if the panels are owned outright.

If you're hoping for a significant bump in resale value, a kitchen or bathroom upgrade might give you a better return on investment.

🔄 Lease vs. Own: What’s Better?

Owned systems are generally viewed more favorably and can add value to a home. If you’re considering solar, try to avoid leasing if possible. While leased panels may come with lower upfront costs, they typically don’t increase home value and can complicate the sale process.

Buyers must assume the lease, which adds a layer of complexity and, in many cases, feels like a burden rather than a benefit.

📋 Questions to Ask When Buying or Selling a Home with Solar

Whether you’re buying a solar-equipped home or considering installing a system yourself, here are some key questions to ask:

Is the system leased or owned? Is there an outstanding loan?
When was the system installed? What about the inverter?
What’s the average monthly energy bill and estimated savings?
Are all components working properly?
Is the system enrolled in solar renewable energy credits (SRECs)?
Are there any warranties for equipment or production?

⚡ Is Solar a Good Fit for Colorado?

According to the U.S. Energy Information Administration, the average Colorado homeowner:

Pays around 11.36 cents per kilowatt-hour
Uses about 711 kWh per month

Both numbers are below the national average, which means solar panels might not offer the same ROI in Colorado as they would in states with higher usage and utility costs.

Final Thoughts

I’ve seen plenty of scenarios—on both the buying and selling sides—where solar panels impacted the transaction in surprising ways. It’s crucial to get all the facts before installing solar panels or purchasing a home that already has them.

If you’re considering solar and aren’t sure where to start—or just have questions about how it could affect your home value—I’m happy to help! Don’t hesitate to reach out.