Is It Better to Fix or Replace Aging Solar Panels?

If you have had solar panels for some time, you may already have worked out how much they reduce your electric bill. But as a solar power system gets older, its ability to generate electricity slowly declines. Even so, solar panels are typically built to last 25 to 30 years, despite some gradual loss in performance.

When older solar kits are nearing the end of their useful life, or have stopped working properly, many homeowners wonder whether repair is worth the expense. Since it can take years for a system to pay for itself through utility savings, it is reasonable to ask whether fixing an aging setup makes financial sense. In many cases, if you can afford it and want to keep using solar power, reinstalling panels can still be worthwhile.

A home with solar equipment often sells for several thousand dollars more than a comparable home without it, which may help offset the cost of repairing and reinstalling the system. However, if the panels are close to the end of their lifespan, putting money into repairs can be a costly mistake. An older kit may require a more expensive replacement, making it harder to justify the investment because it will take longer to recover the expense through lower energy bills and higher home value.

What to consider when solar panels come off for a roof replacement

One of the most common times homeowners face the repair-or-replace decision is during a roof replacement. Solar panels are usually installed on mounting rails that sit above the existing roofing materials and hold both the panels and wiring in place. If the shingles or other roof materials need to be replaced, the solar panels and rails must be disconnected and removed before the roofing work can begin. The mounting hardware attaches to the deck and frame beneath the shingles, which is why the panels have to come off first in a full roof replacement.

Once the roof is finished, homeowners can decide whether to repair and reinstall the existing system, buy a new solar kit, or leave solar off the roof entirely. If the current setup is near the end of its life, replacing it with new equipment may make more sense than reinstalling the old one.

There is also the added cost of hiring a separate crew for solar work, since the roofers usually will not handle the panels themselves. Some manufacturers may void a warranty unless approved professionals remove and reconnect the system. In addition, some states and cities require licensed workers to handle solar panel projects to meet building and electrical code rules.

Weighing the cost of reusing old panels against buying new ones

When roofing materials beneath a solar installation must be replaced, several costs are unavoidable. According to Angi, replacing a home's roofing materials averages about $9,600. Paying an authorized crew to remove solar panels from the roof typically costs between $1,000 and $3,500. Altogether, that means you may spend around $12,000 before you even decide whether to put the panels back up.

Repairs to solar panels often range from $100 to $4,700, although the total can be much higher if a new battery system or solar inverter is needed. Reinstalling the panels can cost about the same as removal, with companies commonly charging between $1,500 and $6,000 for the combined job. By comparison, the average cost of buying and installing new solar panels is about $27,000, so repairing and reinstalling can save a substantial amount if the system is still in good enough shape. Still, if repairs would cost 50% or more of the price of new panels, replacement is generally the smarter option.

Another factor is resale value. If you expect to sell your home soon, solar panels may make it more attractive to buyers. Zillow research found that homes with solar panels on the roof sell for an average of 4.1% more than similar homes without them, which comes to nearly $9,300 for a median-valued home of about $366,000.