By: Sally Grenier, Broker Owner
Grenier Real Estate
As a Boulder County REALTOR I get lots of questions from people about what home improvements provide the best value. Recently, a neighbor, Jeff, said he had just met with a solar panel sales rep and was told it will add at least $20K in value to their home. He asked me if this was true or not.
Don't get me wrong. I would LOVE it if everyone went solar! I consider myself pretty "green" and I understand the need for alternative energy sources. I would love to save money on my electric bill, and help save the planet at the same time.
However, getting solar panels on your home can be a good thing or a bad thing. There are a lot of variables such as which company you use, how long you plan on living in your home, the total cost of the system, the financing terms if you're leasing it, what happens if there's hail damage, etc.
I've found that the majority of homeowners want solar panels for the same reasons I do. We want to save $$ on our energy bill and also try to "go green". And that's great!
But the majority of homeowners get sucked into a solar panel LEASE that may not have good terms or conditions. For example, in many cases, you do NOT own the solar panels at the end of the lease.
So...here are the biggest issues (in my own opinion) on LEASING solar panels:
1. Instead of an Xcel bill you now have a lease payment of at least $100+ per month (depends on the cost of the system and terms of the lease). So you might be saving a little money.
2. If you only plan on being in the home a few years, you may want to weigh the pro's and con's and do a cost-benefit analysis. Note that not all buyers want solar. In addition, this additional lease could negatively affect the buyer's debt to income ratio (and they may not qualify for the mortgage).
3. Will you OWN the system at the end of the lease or will the solar panels come off? (I've seen many situations where you do NOT own the system in the end).
4. What happens if your circumstances change, and you decide to sell before the end of the lease? (Is the buyer responsible for assuming the lease or can they be removed from the home?)
5. Solar panels do NOT add much value to your home (when leasing). In fact, it may negatively affect your value if you have to sell and buyers don't want to purchase your home because of the bad lease terms. 
I gave my friend Jeff this hypothetical situation: "If you're a buyer, looking at 123 Main St. for $500K (without solar) and the EXACT same house next door at 125 Main St. (w/ solar) is listed for $525K, which one would you buy? Most people want the less expensive home.
I've had buyers fall in love with a house, but then decide against it SOLELY because of the Tesla solar lease in place. The sellers were only 2 years into a 20 year lease, and according to their agent, they were "usually breaking even" every month. And with this lease you would not own the panels at the end of the lease. These aren't great selling points.
When is going solar is a GREAT idea?
1. When you're going to be in your home for a long time. I'd say at least 10+ years (or long enough for the cost savings to pay for the system); and
2. When you're able to purchase the solar system outright and not have to lease it.
Note: Leasing is "okay" IF you're getting decent terms AND will own the system at the end of the lease. AND if you decide to sell, the buyer has the option to assume the lease or not.
Final thoughts:
I think solar is a great way to save on your energy bills and is great for our environment. But I also think solar systems still have a long way to go. I think they'll get cheaper and the technology will get better. I also think solar companies will offer better options in terms of buying or leasing. 
Definitely go solar if you:
1. Want to save a little on your monthly energy bill; and/or
2. Want to "go green" and help save our planet.
Do NOT go solar if you:
1. Think it's a great investment; and/or
2. Think it will add tons of value to your home.
I hope this helps!
:)
Sally