Parts of Arizona get approximately 300 days of sunshine a year, so it is no wonder that solar panels are becoming popular in this Southern state. Selling a home with solar panels is not a problem, and statistics indicate that the number of homes sold that have solar panels is constantly increasing.

However, whether or not solar power will increase the value of your home is dependent on multiple variables, and in some cases, it does not amount to enough of an increase for it to be worth it. Solar panels can save a homeowner a lot of money in electricity over the years, but home sellers and buyers must be armed with knowledge in order to consider adding panels to sell a home or consider buying a home with solar panels.

5 Things to Know about Solar

1. Value added diminishes with the length of warranty.

The value of solar panels is calculated by using the amount a homeowner will save in energy consumption and multiplying that by the years left on the warranty. If there is very little time left on the warranty, then that value added to a home price will be reduced drastically.

2. Leased panels do not add value.

If the panels have not been purchased, then they do not add any value to the home because they are not owned. A buyer can take over the contract however, so leased panels may improve that salability of a home.

3. The home may still be dependent on the grid.

Some solar panels don’t make quite enough electricity to fully power the home, which means they still rely on the grid for constant electricity, which means there is still an electricity bill. This can be a deterrent to some home buyers, but it can also provide comfort in knowing there is a backup option for power if needed.

4. If the roof is in disrepair, solar panels are expensive to remove to reroof.

Obviously, a roof that is in poor condition is going to be a factor in a home sale anyway. However, if the roof is okay but will probably need replaced in five years, buyers may be turned off by the added expense in their future.

5. Some energy companies will buy your excess energy.

There are tax credits and energy credits that power companies will provide if you are able to create excess energy and export it to the grid. Since Arizona is the sunniest state in America, there is a good possibility that a residential home could produce excess power, in which case the homeowner would benefit.