If you've had someone knock on your door offering "free solar," "no money down," or "lower electric bills," you're not alone.

Every year, thousands of homeowners sign solar contracts believing they're making a smart financial decision. Sometimes they are.

Unfortunately, many homeowners don't discover what they actually signed until years later when they try to sell their home, replace their roof, or realize they're paying more each month than they expected.

As a real estate broker, I've dealt with countless homes that have solar loans and leases attached to them. I've seen transactions delayed, buyers walk away, and sellers forced to pay off large solar obligations at closing.

I'm not here to tell you whether solar is good or bad.

I'm here to tell you the questions you need answered before you sign anything.

Question 1: What Type of Solar Contract Am I Being Offered?

Not all solar contracts are the same.

There are three primary types.

Solar Loan

You borrow money to purchase the system.

You own the panels once the loan is paid off.

Solar Lease

The solar company owns the panels.

You pay a monthly lease payment to use them.

Power Purchase Agreement (PPA)

The solar company owns the panels.

Instead of paying to rent the equipment, you pay for the electricity the system produces.

If you don't understand which one you're signing, stop right there.

Question 2: What Is the Cash Price?

This may be the most important question in the entire sales presentation.

Don't ask:

"What is my monthly payment?"

Ask:

"What is the cash price of this system?"

Many homeowners never ask this question.

If the cash price is $30,000 but the financed amount is $42,000 because financing costs and dealer fees were added, that's important information.

Question 3: Are Dealer Fees Included?

Many solar loans include dealer fees that are built into the financed amount.

Those fees can add thousands of dollars to the loan balance.

Ask:

"How much of my financed amount is the actual equipment and installation, and how much is financing cost?"

Question 4: What Will My Total Monthly Energy Cost Be?

This question is more important than:

"What is my solar payment?"

Suppose your average electric bill today is:

$90 per month.

After solar:

Solar payment: $150

Remaining electric bill: $20

Your total monthly energy cost is:

$170.

The only number that matters is your total monthly cost after everything is added together.

Question 5: Will I Still Receive an Electric Bill?

In many cases:

Yes.

Solar does not usually eliminate your relationship with the utility company.

You may still pay:

Grid connection charges.

Distribution charges.

Electricity purchased when your system isn't producing enough power.

Ask exactly what your projected utility bill will be after installation.

Question 6: Does My Payment Increase Every Year?

This question is critical.

Some solar loans have fixed payments.

Many leases and PPAs include annual escalators.

That means your payment or your price per kilowatt hour increases every year.

Ask:

"Will I be paying more five years from now than I am today?"

Question 7: What Happens If I Sell My House?

This is the question many homeowners don't ask until it's too late.

If you have a solar loan:

You may need to:

Pay it off.

Have the buyer assume it if allowed.

Reduce your sales price to offset the remaining balance.

If you have a lease or PPA:

The buyer may need to qualify with the solar company before taking over the agreement.

Some buyers simply don't want another long-term financial obligation.

Question 8: Does Spending $30,000 Automatically Add $30,000 to My Home's Value?

Homes are worth what buyers are willing to pay.

Some owned solar systems may contribute some value.

Others may contribute very little.

The amount you spent is not automatically equal to the amount of value added.

Question 9: What Happens If My Roof Needs Replaced?

Solar panels usually have to be removed before a roof can be replaced.

Depending on your agreement, that removal and reinstallation may cost thousands of dollars.

If your roof is already approaching the end of its useful life, replacing it before installing solar may be worth considering.

Question 10: What Are My Actual Savings?

Ask the salesperson to compare:

Your average annual electric bill today.

Versus

Your total annual cost after solar.

That comparison should include:

Solar payment.

Remaining utility bill.

Not just one or the other.

Question 11: How Long Do I Plan to Stay in This House?

Someone planning to move within five years should evaluate the resale implications very differently from someone planning to stay for thirty years.

The longer you expect to own the home, the more important it becomes to understand the long-term economics of the agreement.

Question 12: Can You Show Me the Numbers Instead of the Sales Pitch?

Every proposal should answer these questions with real numbers.

Cash price.

Financed amount.

Loan balance.

Interest rate.

Dealer fees.

Expected production.

Remaining utility bill.

Annual payment increases.

If those numbers aren't available or can't be explained clearly, don't sign anything that day.

Take the proposal home.

Read it carefully.

Ask questions.

A 20 to 25-year financial commitment deserves more than a thirty-minute sales presentation.

When Solar Can Make Sense

Solar is not automatically a bad investment.

There are situations where it may provide meaningful value.

Examples include:

Large all-electric homes.

Homes with electric heat or multiple heat pumps.

Electric vehicle charging.

Very high year-round electric consumption.

Reasonably priced systems that produce meaningful monthly savings.

The important point is that the decision should be based on actual numbers, not assumptions.

Final Thoughts

Solar panels themselves are not the issue.

The issue is understanding exactly what you're signing and whether the numbers make financial sense for your specific home.

Don't buy solar because someone tells you it's free.

Don't buy solar because someone says your electric bill will disappear.

Don't buy solar because you're told your house will automatically be worth more.

Buy solar only after you've compared your current costs, your projected future costs, the financing terms, and the impact on your home's future resale.

Take your time.

Ask questions.

Read every page.

Then decide whether the numbers actually work for you.