An industry expert just took to TikTok to lay to rest the myths surrounding the value of solar panels for your home.
There is a longstanding debate about whether installing solar panels on your roof increases or decreases the overall property value. In a recent video, mortgage expert Brandon Brotsky (@branthemortgageman) laid out the facts from one of America's biggest financial institutions — and the reality is, solar panels are a smart move in the majority of cases.
@branthemortgageman Thinking of going solar? 💡 Here's the breakdown on how it affects your home's value according to Fannie Mae's guidelines. ✅If you own the panels outright or have financed them as a fixture (e.g., through a cash-out refinance), the appraiser can add their value to your home. ❌ If you've taken a third-party loan specifically for the solar system, your property won't gain additional value until the loan is PAID OFF. ❌Leasing the panels can lower monthly bills but won't increase the property's value. Owning the system as a fixture to the property is key to officially boosting your home's value. Follow for daily finance and mortgage tips! #solar #solarpanels #homeowner #solartaxcredit #homeownership #homebuyer #buyingahome #mortgage #mortgagetips #homedownpayment #homebuyertips #realestate #realtor ♬ FEEL THE GROOVE - Queens Road, Fabian Graetz
"If you've been pitched to put solar panels on your house, you've probably been told that it will increase your home's value," Brotsky says in the video. "Here's the breakdown directly from Fannie Mae's appraisal guidelines. … I hope this clears the air on this highly debated topic."
If you actually own the panels, you get the biggest benefit from them, he explains. "If the panels are owned outright, meaning you paid cash or have paid off any third party debt associated with the panels, the appraiser can add the value of the solar panels to your home," he says.
But that isn't the only time it's worth adding solar panels. "If your panels are financed as a fixture to the home, the value would also be increased," he adds. "An example of this would be if you did a cash-out refinance to add solar panels to the property."
There are moments when solar panels don't add — at least, not immediately. "A third-party loan that was originated specifically to finance the solar system would disqualify the property from additional appreciation," he says, but then he points out, "As I mentioned earlier, once the loan is paid off, the value of your property will increase."
All of these options help soften the blow of the up-front cost of solar panel installation. Combined with how effective they are at reducing your electric bill — and the savings available through tools like EnergySage's free online marketplace, which can get the average user up to $10,000 in incentives — this is a clear winner. For a breakdown of incentives and prices by state, check out EnergySage's map tool.
However, even if you can't afford to own solar panels through EnergySage, you may still want to lease them. "The last option, leasing the solar panels, will almost definitely lower your monthly power bill," says Brotsky. "However, it will never increase the value of the property. A home with solar is going to lower the overall monthly expenses for the incoming buyer, which will ultimately make the property more attractive to buyers. But in order to officially add value to the home, the system needs to be owned as a fixture to that property."
In other words, it doesn't directly increase the dollar value, but doesn't lower it, either, and does attract buyers because it adds value in other ways.
If you're looking for a way to lease solar panels with no money down and lock in a low rate for your energy, choose Palmetto's LightReach solar panel leasing program.
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The cost 💰 
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