Should You Install Solar Panels Before Selling in Maplewood, New Jersey?

If you're thinking about selling your home in Maplewood, New Jersey, you may be wondering whether installing solar panels will give you a competitive edge—or cost you more than it’s worth. With growing environmental awareness, rising utility bills, and a strong solar infrastructure across the Garden State, the idea of "going solar" before listing is more relevant than ever. But the answer isn’t one-size-fits-all.

Here’s a deep dive into what New Jersey homeowners should consider before making the investment.

Why Solar Is Popular in New Jersey

New Jersey consistently ranks among the top 10 states for solar adoption. Why? Because of:

• High electricity rates: New Jersey residents pay more than the national average for electricity.

• Sales Tax Exemption: New Jersey waives the state's sales tax on all solar energy equipment and installation costs. This can result in significant savings, as the state sales tax rate is 6.625%. For example, on a $20,000 solar system, you could save $1,325 in sales tax.

• Property Tax Exemption: New Jersey provides a property tax exemption for the increased value a solar panel system adds to your home. This means you won't pay additional property taxes on the added value of the system.

• Net metering: New Jersey homeowners can earn credits for excess electricity sent back to the grid.

• Federal tax credits: The federal Investment Tax Credit (ITC) currently allows for a 30% deduction on the cost of a solar system, making the initial investment more appealing.

If you plan to live in your home for several more years, these benefits can pay off quickly. But if you’re planning to sell, things get more nuanced.

Will Solar Panels Add Value to Your Home?

Yes, in many cases—but it depends.

What the Data Says:

• A 2019 study by Zillow found that homes with solar panels sold for 4.1% more on average.

• Berkeley Lab research confirmed that buyers are willing to pay a premium for homes with owned solar panels.

• In New Jersey, that could translate to $10,000–$20,000 more in sale price, depending on the size of your system and local market conditions.

However, that value is not automatic—it’s influenced by factors like ownership type, buyer preferences, and system condition.

What the Buyers Say:

It’s been our experience that solar panels do not add value to a home.

• They are NOT a feature that buyers are looking for specifically as opposed to renvoated kitchens, baths or central AC.

• The sometimes reduce the curb appeal of property.

• They can cause complications with roof maintenance.

• The terms of lease arrangements and the net benefit in energy cost reduction can be difficult to explain clearly.

Owned vs. Leased Systems: A Major Consideration

Owned Solar Panels:

These are typically seen as an asset. When you sell, the system transfers easily with the home—adding to its value without additional negotiation.

Pros:

• No ongoing payments for the buyer (unless there is outstanding loan)

• Potentially higher resale appeal

• May qualify for higher appraisals

Cons:

• Requires a large upfront investment (though federal tax credits may help) and must be paid off before closing or the outstanding balance  assumed by the buyer

Leased Solar Panels:

These can complicate a sale. Buyers must assume the lease—or you must buy it out.

Pros:

• Low or no upfront cost to the homeowner

• Immediate savings on electricity

Cons:

• Can deter buyers who don’t want a long-term lease

• May delay closing if the lease transfer isn’t handled promptly 

Important: Some buyers won’t qualify to assume the lease, potentially limiting your buyer pool.

When Installing Solar Before Selling Makes Sense

• You plan to remain in the home for 1–3 more years, benefiting from utility savings and tax credits.

• You have a newer roof (solar installation on an aging roof is not recommended).

• You can afford to purchase the system outright.

• Your home is in an area where solar is common or in demand (e.g., Montclair, Maplewood, South Orange).

When It Might Not Be Worth It

• You're planning to list your home immediately.

• Your roof needs repair or replacement.

• You’re relying on leasing, which could complicate the transaction.

• Local buyers are less familiar or enthusiastic about solar (usually less common in rural areas).

What If You Already Have Solar Panels?

Great! Be prepared to:

• Provide detailed documentation on system specs, warranties, installation date, and energy savings.

• Highlight net metering benefits or utility bill reductions.

• Explain any lease agreements clearly and work with your real estate agent to disclose terms early.

Pro Tips for Marketing a Home with Solar

• Include utility bill comparisons from before and after installation.

• Clearly explain all costs and ownership arrangements to the buyer

• Mention any warranties or transferable service plans.

• Emphasize environmental benefits for eco-conscious buyers.

Key Takeaway

Solar panels can absolutely increase a home’s value and appeal in New Jersey—but only under the right conditions. If you’re close to listing, the best move may be to skip installation and market the home as "solar-ready" with a solid roof and good sun exposure.

But if you’re staying put a little longer, and can take advantage of both state and federal incentives, a solar system could yield savings now and increase your home’s value later.

Let’s Talk About Your Solar Strategy

Thinking of selling your home in Maplewood, New Jersey and wondering whether to install solar—or how to market a home that already has it? We’re here to help. As a local real estate team backed by Compass, we offer tailored advice based on your timeline, neighborhood, and goals.

Let’s make your next move the smartest one yet. Contact us today for a no-pressure consultation.