Can I Sell My Solar Panels Back to the Company?

Homeowners often invest in solar panels to reduce energy costs and enhance their property’s value. As life circumstances evolve, a common question arises regarding what to do with these significant assets. Understanding the available options for solar panels, whether you are moving or simply wish to reconfigure your energy setup, involves navigating various considerations. This guide provides clarity on managing your residential solar energy system effectively.

Understanding Solar Panel Ownership and Resale

Residential solar panel systems fall into two main ownership categories: homeowner-owned or third-party owned, such as through a lease or Power Purchase Agreement (PPA). With homeowner-owned systems, you either paid for the panels outright or financed them with a loan, meaning the equipment is your property. This direct ownership model allows you to gain all financial incentives and energy savings. Conversely, a leased system or PPA means a third-party company owns the equipment installed on your roof. You essentially pay them for the electricity generated or a fixed monthly fee, similar to renting the system.

A frequent inquiry from homeowners is whether they can sell their solar panels back to the original installation company or manufacturer. Solar panel manufacturers and installers do not offer buyback programs for used panels once they have been installed on a property. Their business model focuses on new installations, not on acquiring pre-owned equipment. This means directly selling your used panels back to the company that put them on your roof is not an option.

Despite this, solar panels, as tangible assets, still hold value. While the original company might not repurchase them, avenues exist for their disposition. Panels can be sold on a secondary market, where demand exists for used equipment. Alternatively, the solar system can be transferred along with the property when a home is sold, making it an attractive feature for potential buyers. These pathways allow homeowners to recover some of their initial investment or leverage the panels during a property transaction.

Evaluating Your Solar Panel System

Before exploring options for your solar panels, gather specific details and assess the system’s current state. This information is necessary to understand the viability and value of the panels for any future actions. Begin by identifying the age of your solar panels, as well as their total system size, measured in kilowatts (kW). The make and model of the panels and the type of inverter installed are important technical specifications to document.

Evaluate the current operational status and physical condition of the system. Note any visible damage or performance anomalies. Reviewing annual energy production records can provide insight into how consistently the system has been performing. This data helps confirm the system’s efficiency and reliability.

Understanding the warranty status for your panels and installation is important. Determine the remaining manufacturer and installation warranties, as many solar panel warranties are transferable to new owners, covering performance and equipment for 25 years. Warranty transfers often require specific documentation and registration within a set timeframe, usually 30 to 60 days of a property transfer. Collect all original purchase agreements, installation records, and necessary permits. This documentation provides proof of ownership and compliance, essential for any transfer or sale.

Options for Your Existing Solar Panels

Once your solar panel system has been evaluated, several options are available. One common option is selling the panels along with your home. To market a home with solar panels effectively, highlight the energy savings and environmental benefits in the listing. Disclosures to potential buyers should include details of the solar array, such as its age, performance data, and any existing warranties. The process involves transferring ownership and warranties to the new homeowner, often requiring the homebuyer to sign an ownership transfer form and submit a credit application to the solar company if a lease is involved.

Another option is selling the panels separately on a secondary market. This approach involves finding potential buyers through specialized brokers or online marketplaces that deal in used solar equipment. Steps include hiring qualified professionals for the de-installation process. Logistics such as transportation and formal transfer of ownership documents must be arranged with the buyer. Used solar panels can retain some value, especially if they are relatively new and in good working condition, selling for 50-75% less than new ones.

If selling the panels is not feasible, professional removal and environmentally responsible disposal are the primary options. This might be the case if panels are too old, damaged, or if no viable secondary market exists for your equipment. Homeowners should seek qualified solar removal contractors who specialize in safe de-installation, ensuring panels are removed without damaging the roof or surrounding property. Environmentally responsible disposal or recycling is important due to materials within the panels. Recycling facilities can recover valuable materials like aluminum, copper, and silicon from end-of-life panels.

Financial Implications of Panel Transfer or Removal

Understanding the costs is important when considering the transfer or removal of solar panels. If you choose to sell panels separately or remove them, de-installation costs can range from $12 to $25 per panel for dismantling and material separation. Disposal or recycling fees for solar panels range from $15 to $45 per panel, though this can vary based on location and panel type. Transportation costs to a recycling facility might add another $100 to $400 per pickup.

Should you decide to move panels to a new location, re-installation costs apply, encompassing labor, mounting hardware, and electrical reconnections. Administrative and legal fees may arise for transferring ownership documents or securing new permits, particularly for leased systems that require credit checks and formal approval for lease assumption by a new homeowner. These financial considerations can impact the outcome of transferring or removing your solar energy system.

The value from your solar panels can vary. The realistic resale value of used panels is often less than their original cost, with prices for used panels ranging from $0.05 to $0.60 per watt compared to new panels at around $2.75 per watt. Homes with owned solar panels sell for more than homes without them, with studies indicating an average increase in home value by 4.1% to 6.9%. This can translate to an additional $14,000 to $29,000 in value for a median-priced home. Panels can be an asset or a liability depending on buyer interest and whether they are owned outright or leased, as leased systems can complicate a sale.