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Solar Panels: The Biggest Scam in Modern Homeownership

Solar Panels: The Biggest Scam in Modern Homeownership

Every few weeks, it happens again.

A homeowner calls us excited about selling their home—until we ask one simple question:

“Do you have solar panels?”

If the answer is yes, especially if they’re leased or financed, we already know what’s coming next: shock, frustration, and a rough road ahead.

The Door-to-Door Solar Pitch

Solar salespeople are everywhere right now. They knock on doors, blanket entire neighborhoods, and pitch the same lines over and over:

  • “No money out of pocket”

  • “Lower electric bills”

  • “It adds value to your home”

  • “Buyers will love it”

What they don’t tell homeowners is far more important:

  • The panels are not owned

  • The contracts can last 25 years or more

  • Payments can increase every year on leased panels

  • Payments on financed panels combined with the residual electric bill typically exceed the power bill

  • Appraisers often give $0 value

  • Buyers frequently won’t or can’t assume the lease

  • When you sell, you’re the one stuck with the bill

A Real-World Example From a Deal That Is Failing Right Now

We’re currently working with a buyer who attempted to purchase a home built in 2023, bought new from the builder for $885,000 by the current owner.

The sellers added a leased solar panel system shortly after purchase.

Here’s what that lease actually looks like:

  • 25-year solar lease

  • $0 down

  • Starting payment: $204.62/month

  • Annual escalator: 2.99% which means that payments increase every year until the owner is paying $414/mo for the panels

  • Total lease payments over 25 years: $89,384.04 – yes, nearly $90,000!

  • System size: 13.825 kW

  • Electric bill still exists

  • Homeowner does NOT own the system

  • All tax credits belong to the solar company, not the homeowner

    Solar Panel Lease

Let that sink in.

Nearly $90,000 paid over time for something the homeowner does not own, cannot freely remove, and cannot force a buyer to accept. And, they gave the tax credit to the solar company! If this isn’t a scam, what is?

Why This Kills Resale Value

The home is currently listed for $899,000.

But here’s the problem:

  • The market value without solar is closer to $850,000

  • The solar lease payoff is roughly $70,000

  • $850,000 – $70,000 = $780,000 effective value

That’s a $100,000+ problem.

The sellers don’t have the cash to cover the difference, and buyers are rightfully refusing to:

  • Take over a 25-year escalating lease

  • Qualify with a solar lender

  • Pay for panels that add no appraised value

  • Assume a contract they didn’t choose

The result?

The house can’t sell.

Appraisers Don’t Care About Your Solar Panels

This is one of the most misunderstood parts of solar.

In most cases:

  • Leased solar = $0 added value

  • Financed solar = limited value, if any

  • Value is only considered if the system is owned free and clear

  • Even then, value is often far less than installation cost

Why?

Because appraisers value market reaction, not marketing claims.

And the market reaction to solar leases is simple:

Buyers see them as a liability. Dozens of holes in the roof created by solar panels cause many leak points in the roof. When roofs have to be changed, you have to pay to have solar removed, then reinstalled each time.

The Transfer Myth

Solar companies love to say:

“The loan or lease can be transferred to the new buyer.”

What they don’t say:

  • Buyers must qualify

  • Many don’t

  • Most simply won’t

  • Interest rates change

  • Debt-to-income ratios matter

  • Some buyers simply refuse on principle

And per the loan or lease itself, if the buyer doesn’t qualify, the seller must:

  • Pay off the loan or lease

  • Or prepay remaining payments

  • Or default

    Solar Panel Lease

That’s not flexibility. That’s a trap.

Who Actually Wins With Solar Leases?

Let’s be honest:

  • The salesperson gets paid upfront

  • The solar company owns the asset

  • The solar company often keeps the tax credits

  • The homeowner assumes the risk

  • The future sale becomes more complicated—or impossible

This is not green energy.
This is green marketing.

When (If Ever) Solar Makes Sense (Hint: It doesn’t)

Solar can make sense in very specific situations:

  • You own the system outright and have money to burn

  • You plan to stay in the home long-term and value green energy over money

  • You understand the true ROI (or lackthereof)

  • You don’t expect it to help resale (it won’t)

  • You are comfortable treating it as a personal expense, not an investment

But leased or heavily financed systems sold as “free” upgrades?

Those are financially reckless for most homeowners.

Final Warning to Homeowners

If a solar salesperson is at your door, tell that scammer to go home, or if you’re really curious, ask them one question:

“What happens when I sell my home?”

Then read the contract.
Then talk to a real estate professional.
Then talk to your lender.
Then talk to your appraiser.

Because once those panels are on your roof, the problem becomes yours—not theirs.

Bottom Line

Solar panels are being sold as an upgrade, but in reality, they often act as a financial anchor.

We’re seeing it every day in real transactions.

And for many homeowners, the realization comes far too late.

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