Solar panels are no longer just a luxury for eco-conscious homeowners—they’re becoming more common in Memphis neighborhoods. As utility rates rise and energy efficiency becomes a priority, many local homeowners are installing solar systems to cut bills and boost long-term value.
But what happens when you decide to sell a home with solar panels? Do they make the sale easier or harder? Do buyers want them—or do they shy away from the complexity of leases, warranties, and utility rules?
This blog will walk you step by step through everything you need to know about selling a solar-equipped home in Memphis, from financing structures to warranties and buyer expectations.
Why Solar Panels Are Appealing in Memphis
Before diving into the sales process, let’s talk about why solar homes have gained attention:
- Lower energy bills: Memphis Light, Gas & Water (MLGW) rates continue to rise, and solar panels offset those costs.
- Environmental benefits: More buyers are looking for eco-friendly homes.
- Tax incentives: Federal credits have made panels more accessible.
- Future-proofing: Buyers know that energy-efficient homes hold their value.
However, selling a solar home isn’t always straightforward. Whether the panels are leased or owned makes a major difference in how smooth your sale will be.
Owned vs. Leased Solar Panels
When buyers ask about solar, the first question is usually: Do you own them outright, or are they leased?
Owned Panels
- You purchased them upfront (cash or loan).
- They are part of the property and transfer with the sale.
- They increase resale value.
- Buyers see them as an asset, not a liability.
Example:
A seller in Bartlett installed a $20,000 system five years ago. The panels were fully paid off. When listing the home, the agent highlighted average monthly savings of $120 on electric bills. The house sold 10 days faster than comparable homes and for $8,000 more.
Leased Panels
- You pay a monthly fee to a solar company.
- The lease contract must be transferred to the buyer.
- Some buyers are hesitant to take on this responsibility.
- Buyers must also qualify with the solar company, which can delay closing.
Example:
A seller in Cordova had leased panels with 12 years remaining on the contract. Three buyers backed out once they saw the extra monthly lease payment. The eventual buyer only agreed after the seller offered to cover the first year’s payments.
👉 Bottom line: Owned panels make selling easier. Leased panels require extra paperwork and may reduce buyer interest.
How Solar Panels Affect Resale Value
Research shows that solar homes generally sell for 3–5% more than non-solar homes when the panels are owned. In Memphis, where the average home price is about $250,000, that could mean an additional $7,500–$12,500 in value.
But remember: leased systems don’t add value. They may even hurt resale potential because of the ongoing payment obligation.
Buyer Questions You Must Be Ready For
Serious Memphis buyers will want detailed information before making an offer. Expect questions like:
- How old is the system?
- What brand are the panels and inverter?
- Who installed it, and was it permitted by the city?
- What’s the warranty period? (Most are 20–25 years.)
- How much are the average monthly energy savings?
- Is it leased or owned, and if leased, what are the terms?
Having answers ready makes buyers feel confident and prevents surprises during due diligence.
Warranty Transfers: What Sellers Should Know
Most major solar manufacturers offer 20–25 year warranties on panels and 10–12 years on inverters. The good news: many of these warranties are transferable to the next homeowner.
However:
- Transfer often requires notifying the manufacturer or installer.
- Some warranties only transfer once (from the original owner to the first buyer).
- If paperwork isn’t filed correctly, buyers may lose coverage.
👉 Tip: Contact your solar provider before listing to confirm transfer rules.
Memphis Utility Policies (MLGW)
Unlike some states with aggressive solar incentives, Memphis operates under MLGW’s rules. Here’s what buyers need to know:
- No full retail net metering: You may not get full retail credit for excess energy sent back to the grid.
- Energy bill impact: Panels still reduce monthly bills by offsetting usage.
- Inspection requirements: If new buyers expand or modify the system, MLGW may require new inspections.
Buyers often ask whether they’ll “make money” from solar in Memphis. Be upfront: panels mostly lower bills—they don’t usually generate profit.
The Marketing Advantage
Even with complications, solar panels can help your listing stand out in Memphis. Highlight these points:
- Lower bills: Show actual utility statements.
- Eco-friendly living: Market to younger buyers and families.
- Long-term savings: Break down annual energy cost reductions.
This is why many investors and memphis home buyers are open to solar properties—they see energy efficiency as an added selling point for future resale.
Common Challenges (and How to Overcome Them)
Challenge 1: Buyers Fear Maintenance Costs
Solution: Provide warranty details and maintenance history.
Challenge 2: Confusion About Leases
Solution: Share lease documents early and explain transfer steps.
Challenge 3: Slower Closings
Solution: Work with a title company experienced in solar transactions.
Real Memphis Case Study
A Midtown homeowner installed a $15,000 solar system in 2018 with a federal tax credit. By 2024, she wanted to sell. She provided utility bills showing $1,500 annual savings and proof the system was owned, not leased.
Buyers were reassured by transferable warranties and an MLGW compliance certificate. The home sold for $10,000 more than a similar nearby house without solar and closed in 21 days.
FAQs
Q: Can I remove solar panels before selling?
A: Yes, but it’s costly and may damage the roof. Most sellers include them in the sale.
Q: Do solar panels make appraisals higher?
A: If they are owned, appraisers may add value. If leased, they usually don’t.
Q: What if the buyer doesn’t want the lease?
A: You may need to buy out the remaining lease balance.
Q: Do buyers in Memphis care about solar?
A: Increasingly yes—especially younger buyers and eco-conscious families.
Q: Can cash buyers purchase solar homes?
A: Yes. In fact, many local investors are familiar with solar transactions.
Q: How do I explain savings to buyers?
A: Show 12 months of utility bills to demonstrate real monthly reductions.
Q: What about roof condition under panels?
A: Buyers may ask. If the roof is near end-of-life, it could affect negotiations.
Final Thoughts
Selling a Memphis home with solar panels isn’t as simple as selling a traditional property. But with preparation, it can be an asset instead of an obstacle.
- Owned panels add value and attract buyers.
- Leased panels require extra paperwork but can still transfer.
- Warranties and utility details reassure buyers and speed up closing.
If you plan ahead—by gathering documents, utility records, and warranty details—you can present your solar-equipped home as a forward-thinking, money-saving investment for the next owner.ed and owned systems, how warranties transfer, and what buyers expect. By preparing your documents and utility history, you can position your solar investment as a valuable selling point.