Is It Better To Buy a D.C. Home With Solar or Install It Yourself?

By Troy Patterson

Troy holds designations as a Luxury Home Marketing Specialist, Graduate Realtor Institute, Certified Residential Specialist, and Military Relocation Professional. He has certifications as a financing specialist in Virginia and a pre-licensing instructor in the District of Columbia.

Are you considering installing solar panels or purchasing a home that already has them? It can sound like an easy win with lower electric bills, clean energy, and added home value, but the reality is more complicated. Solar can be a powerful investment if you understand how it works, but it can also bring unexpected costs and contract issues if you don’t ask the right questions. Let me walk you through the key pros and cons so you know exactly what to look out for.

Pros of installing solar panels. One of the most significant benefits of installing solar is the impact on your utility bills. Depending on the system size and your household usage, panels can reduce your monthly electric bill by 50% or more, resulting in significant long-term savings. Incentives make solar even more attractive in D.C. and Maryland.

Homeowners here can combine the 30% federal tax credit with local rebates and additional income from solar renewable energy credits, also called SRECs. With some of the highest credit values in the country, these programs shorten the time it takes to see a return on your investment.

Panels can also increase the value of your home. When the system is owned rather than leased, homes with solar panels tend to sell faster and often command 3 to 5% more than comparable properties without them, which means buyers see energy savings and added value as a significant plus.

Cons of installing solar panels. While the benefits are appealing, the upfront cost is still a major factor. Even after incentives, most systems cost between $12,000 and $25,000, and you’ll either need cash on hand or financing to cover it. The condition of your roof is another consideration. If it needs to be replaced in the near future, you’ll face additional expenses to remove and reinstall the panels, which can be both costly and inconvenient.

Finally, lease offers and power purchase agreements often come with strings attached. Zero-down deals can appear attractive at first, but these contracts are usually lengthy, restrictive, and difficult to transfer when it comes time to sell, which can become a problem for both you and potential buyers.

Pros of buying a home with solar panels. Purchasing a home that already has panels in place comes with its own set of advantages. The savings start immediately because the system is already working, so you’ll benefit from lower bills from the first day you move in.

You also avoid the hassle of permits, installation, and roof work since that’s already been completed. For many buyers, this turnkey benefit adds absolute convenience. If the system is fully owned, the value is built into the home at the time of purchase. That means you could be getting $15,000 to $30,000 of added value right away, without waiting years to reach the break-even point.

Cons of buying a home with solar panels. The biggest challenges arise when the panels are leased. These agreements incur monthly costs and may even require you to qualify with the solar company before the contract can be transferred, which can complicate the purchase process.

Some contracts also include escalation clauses, which increase the payment by 2% to 3% annually. That means what seems like an affordable energy bill today could become more expensive in the future.

Additionally, if the panels are financed or leased, there may be liens on the property that must be resolved before closing, which can delay or even jeopardize the deal if not handled properly.

Going solar doesn’t have to be complicated. With the right questions and a clear plan, you can enjoy the savings and value without the stress. If you’re considering installing solar panels or purchasing a home with solar, please call or text me at 202-417-8735 or email me at speragroup@ttrsir.com. I’ll walk you through the process and provide personalized guidance, helping you make the most informed decision for your home and wallet.