How Solar Panels Impact Buyers and Sellers
As residents of one of the sunny places to live in our nation, Arizonans face a unique opportunity to take advantage of harnessing the power of the sun and converting that into energy for our homes. There are two main ways to take advantage of solar power, either through a purchased system or a leased system. Both choices have implications when homeowners sell.
The first option you have is to purchase the solar system for your home. The owned system does have a larger upfront investment, and for some homeowners, is cost prohibitive. Systems can be upwards of $30,000 to install. For many homeowners, the length of home ownership vs. energy savings may not be the best choice. For instance, if you only plan to own your home a brief period of time, you may not be able to recoup the costs associated with installation. Conversely, if you plan to purchase your “forever home” and estimate you will live in it for 20 plus years, it may be a no brainer. Owned solar systems do provide a boost for your resale value. It certainly would make your home more attractive to potential buyers considering the added value of lowered utility payments. However, the amount of added value may be debated.
A second option is to place a leased system on the home. This option lowers the initial start up costs but may affect the resale of your home. Most solar leases do allow for the lease to be transferred to the new owner. Some companies even go so far as to say they do not need to be transferred and the company will remove the panels at no additional cost if the new owner does not wish to transfer the lease. If the new owner chooses to transfer the lease they will need to run a credit check on the new owner. The credit score suitable by one company in our area is 625 (this will vary by company, so check for yourself). Most home buyers will use a home loan to purchase and will also need a credit score suitable to lending. The most important thing home owners can do is understand the terms and conditions of their lease and how transfer of ownership and the lease work. It is also important to provide a copy of your lease agreement and contact information for the company to your Realtor. They will be able to assist the solar company in the transfer of the lease and serve as a point of contact for parties to help answer questions and make sure that the transfer is completed if necessary.
As realtors in the Prescott area we have been involved in the sale of leased solar systems. All parties were informed of how the transfer of the lease would work. The company was very helpful in informing and organizing the transfer of the lease and the new home owners were very happy to be able to continue the cost savings the solar system provided for the home. If you have additional questions or concerns about solar related issues and homeownership, we would be happy to help. Give us a call at 928 925 6050 (Jason). For additional solar information from local companies, please see below
SunRun https://www.sunrun.com/
Blazing Sky http://blazingsky.com/
American Solar and Roofing http://www.americansolarandroofing.com/
SolarOne Southwest http://solaronesw.com/