Refinancing House With Solar Panels

Refinancing House With Solar Panels

Yes, we can refinance property with solar panels but question how?

A lender or a solar company will consider an upgrade by depending upon the property system size as well as age. And in ROI the home value increases and it will result in better refinancing terms. You can refinance it by home loans and take a better advantage in the future.

Solar Panel Systems do increase the valuation of the property, we can’t disagree to this point that it is a long term cost saving from solar panels.

As per National Renewable Energy Laboratory(NREL), there is an increment of $20 in every $1 in energy bill savings. So we can assume that the owners save annually $700 in electricity bill, then home valuation will increase by $14000 based on the solar panel system.

And 67% of buyers consider energy efficiency the most important factor while buying a property and are ready to pay 4.1% extra for that according to a 2023 research done by Zillow.

National Renewable Energy Laboratory


Installed solar panels do not guarantee a long and estimated home valuations since some factors do affect which are:

  1. Home Location
  2. Electricity Bill Amount
  3. Solar Panel condition and Years

For example, if your property is around a high electricity area with high rates then one can achieve maximum cost saving and vice – versa, when areas with low electricity rates can negatively impact and can’t achieve maximum cost saving.

Finance can affect Home Valuation and Refinancing:

Buying solar systems either with cash or solar lease, each way affects valuation differently. Or it can be say in that way, if you leased your solar system and solar provider owns the panels, then you need to either one of the following mentioned below:

  1. Buy ot the lease
  2. Transfer the lease to the new owner

It depends upon the time that how much time is left for lease a buyout option can be very expensive or we can say the new homebuyer must meet highly specific needs  from the solar provider to transfer the lease.

The tax of the property, if the solar system has high generation capacity then high valuation price and as well as high property tax.

Now that you have an approximate idea of solar system price with the product knowledge and since it is a little complex to have but one thing for sure for long term investment it will benefit you. And approx it takes 5-10 years to break even as per the electricity bill and whether it is residential or commercial. Solar panels will increase the value of your home as well as many retailers will allow you to sell the extra power that your solar panels are producing.

Refinancing with Solar Panels:


A mortgage lender treats solar loans as a second mortgage when you purchase solar panels with solar panels, and for a second mortgage we require a subordination agreement that the solar provider has signed that states that the bank is in first line to get paid back if you default on your payments. But, loans can affect the home’s potential equity and loan’s terms. Many of the owners pay before refinancing only but not everyone can manage the same.


It allows customers to avoid extra cost of solar equipment as well as installation cost. The lien gives the solar provider the right to repossess the solar panels system if your by default payment is overdue. And also, you can lift the lien from the solar provider to refinance, which allows refinancing transactions to get close unless you pay off the loan amount.

And if you got this and are thinking of refinancing then the first step is to understand how to purchase solar panels systems with cash or loan. The second step after solar leasing is to work with the solar provider to temporarily lift any liens on the equipment.

But this whole process takes a very long time, but most solar companies and lenders are aware of the money side of things as well as the refinancing process. So for more information you can directly connect with

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