The solar panel contracts that can kill home sales

Core Insights - The appeal of solar energy lies in its potential to reduce utility costs and increase home values by 5% to 10% when selling [1] - However, many homeowners lease their solar panels, which can create financial liabilities rather than assets [2] Group 1: Solar Panel Ownership and Leasing - A significant number of homeowners do not own their solar panels but lease them, leading to long-term financial commitments that can last up to 25 years [2] - Homeowners often mistakenly believe that buyers will assume the lease payments if they sell their homes, but this can complicate sales as buyers may be unwilling to take on such liabilities [3][5] Group 2: Market Trends and Financial Implications - The residential solar market has seen substantial growth, with approximately 8% of homes nationwide equipped with solar panels, and higher percentages in states like Hawaii, California, and Arizona [7] - The average cost of a solar system is projected to be between $21,900 and $26,400 in 2025, making it a significant investment despite the availability of leasing options [8] - As of mid-2024, the popularity of solar leases has increased, with around 36% of residential solar projects being leased or under power purchase agreements, up from 22% three years prior [9]