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What You Need to Know About Buying a Home With Solar Panels Already Installed
Updated: Sep 28, 2022
By now, we all know the benefits of solar panels installation. One of the chief benefits is that it enables you to save a considerable amount in monthly energy bills while contributing to ecological sustenance.
Thinking about buying a home with solar panels already installed? Here are things you need to know before shaking on the deal.
What are solar panels and how beneficial are they?
Solar panels are eco-friendly power-generating alternatives that convert radiation from the sun into clean, usable energy. The panels receive and trap the sun’s rays, storing the power in batteries that can be used as electrical energy in the home.
Depending on the size of your installation, you’ll save a lot of money on electricity bills. Besides, it’s clean, quiet energy, so there’s no risk of pollutants, emissions or loud noises.
In addition, your utility company can compensate you for the excess energy you send to the local grid. There are also federal and state tax incentives that enable you to save on the cost of installation.
What’s the link between solar panels and home prices?
Solar panels are regarded as a major upgrade. Thus, they increase your home’s value like remodeled bathrooms and upgraded kitchens do.
Homes with solar panel installations sell for nearly 5% more than homes without solar panels.
Homeowners can estimate their home’s energy production using the photovoltaic value (PV). This value complies with the Uniform Standard of Professional Appraisal Practice.
Once this estimate is reached, the home seller can transfer the solar lease. Sometimes, you may have to pay a lease transfer fee, which could increase the cost of the overall property purchase.
How do solar panels affect mortgage opportunities?
You can still get mortgages even with homes that have solar panels. However, some potential questions could come up based on the following factors:
Who carried out the installation
How the installation was done
When the installation was done
Today, many homeowners have solar panel installations, so mortgage companies have all had to adapt to this new method of assessing mortgage applications. Applications are sorted out per these two main categories:
Leased solar panels
Many mortgage lenders don’t allow you to take mortgages to buy homes with leased panels. The few that do usually have strict conditions, like the right to break the lease terms to facilitate quick sales in the case of repossession.
The terms may also require the buyer to foot ongoing costs in affordability calculations. Nevertheless, some lenders can grant loans of up to 75% for a property with leased solar panels.
Owned solar panels
This situation is easier to navigate. However, there may be some concerns for mortgage providers. Sellers might want to remove the installation and take it with them to a new property, leaving buyers to foot the cost of roof repairs.
Enjoy optimal power with High Bar Roofing
If you have any inquiries on buying a home with solar panels or general questions on solar panel installations, do not hesitate to reach out to us.
Whether you need solar panel installations at your residential or commercial building, we are about ensuring you generate maximum electricity and save money.
Our solar panels are backed by a 25-year manufacturer guarantee, and long after the expiration of 25 years, they're are proven to have an efficiency rate of 92 percent. It doesn't get any better! Call us at 817-925-6737 or request a solar inspection.