Advise 1.
How much sun will your roof get? ou’ll need plenty of sunlight for solar panel success. Check for trees both on your property and in neighbors’ yards. Have the trees grown and begun to cast too much shade since the solar panels were installed? If that’s the case, some tree trimming or transplanting (and neighborly negotiation) might be necessary. While solar panels work best on south-facing roofs, both east- and west-facing roofs can also gather plenty of energy if they get enough sunlight throughout the day.
Advise 2.
What about resale value? Solar panels are viewed similarly to upgraded kitchens or remodeled bathrooms—they increase a home’s value. In fact, homes with solar panels sell for 1.4 percent more than similar homes without them, according to Zillow. The photovoltaic value (PV) calculates energy production value for a solar panel system and is compliant with Uniform Standards of Professional Appraisal Practice. The PV value is a tool that both home sellers and home buyers can use to get the most accurate estimate of a home’s solar energy production.
Advise 3.
Will you lease or own the solar panels? If you’re considering buying a house with solar panels, you’ll want to ask if they are leased or owned. Owning the solar panels on your house is the best financial decision, since solar panel lessees save less than those who purchase them outright. You might save some money up front with a lease, but you may lose that advantage when buying a home with existing leased panels. When leasing solar panels, homeowners can lose control of just how many panels are placed on their roof and where, since the leasing company will be focused on maximizing its own bottom line.Furthermore, a lease term for solar panels is generally 20 years. That means if you’re buying a home that has years left on the solar lease, you, as the home buyer, become the lessee.
Advise 4.
Can you still get a mortgage for a house with solar panels? Buying a house with solar panels can affect the way you get a mortgage. In particular, matters like owning or leasing the panels and how the panels were financed might affect your mortgage. If the seller of your soon-to-be home outright owns the solar panels, that’s ideal; the panels will likely only affect the home’s price. If you buy a home with leased solar panels, though, you’ll want to discuss any lease terms and monthly fees associated with the system.
Advise 5.
What’s the difference between solar loans and financing? If the seller of the home owns the solar panels and is still making payments through a loan or through financing, you’ll want to know the details as the buyer. If the panels were financed through a solar loan, the loan will remain the seller’s responsibility, even if the property is sold. That means the buyer is off the hook for making payments on that loan. However, if the solar panels were purchased through (PACE) financing, the financing remains attached to the property, since payments are made via property taxes. Those payments would thus be transferred to the home buyer.
