Buying And Selling A Home With Solar Panels

Buying And Selling A Home With Solar Panels

What solar panels are used for and why they are efficient:

A solar panel is a panel that converts sun rays into a source of energy. Solar panels are majorly used to generate electricity. Solar panel is an increasingly popular alternative energy source. The operation of solar panels is easy to understand. Solar panels consists of small units known as photovoltaic cells. These cells allows particles of light to knock electrons free from atoms thereby generating electricity in the process. Solar panel is an efficient source of electricity compared to other traditional sources. This is because they deal with energy from the sun. Solar panels do not breakdown like other equipment involved in traditional sources of energy. Moreover, they are not exposed to chemical reactions and mechanical faults that are associated with traditional sources of electricity like natural gas plants, nuclear plants, coal plants, e.t.c. Solar panels offer clean energy that has no negative effect on the environment.

What happens if you have solar panels and want to sell your house:

There is no doubt that solar panels will increase the value of your home during a sale. If you have solar panels installed in your home, there are financial benefits attached to it during a home sale. Several studies have revealed that homes that have solar panels installed sell more quickly than homes without solar panels. Moreover, homes with a solar system sell at higher prices compared to homes without them. On the average, a solar system can add up to $15,000 to a home's selling price. One of the reasons responsible for this is that homes with solar panels have lower energy bills, this is a very attractive situation for home buyers because they get to save in the long run. Moreover, home owners who install solar panels stand a chance of making money if a portion of the energy generated on their roof goes to the national grid. When a home is sold, this benefit is passed to the home buyer.

There are two ways a homeowner can install solar panels in a home. One of them is to buy the solar panels, the other option is to lease them. The scenarios involved in the sale of a home with customer owned solar panels and leased solar panels are different. While a sale of a property with customer owned solar panels would lead to immediate profits, this is not the same when a property with leased solar systems are sold. This is because the FHA, the federal authority that regulates home acquisitions doesn't offer any guidelines for evaluating the cost of solar systems during a sale, hence it would most likely not influence a home's valuation. There are two ways in which you can sell a home with a leased solar panel. The seller either pays off the lease in total or make the home buyer agree to acquire the lease. If you are selling a property with a leased solar system, you need to do some calculations in order to determine if it would be more profitable for you to payoff the lease or find a buyer who would be willing to acquire the lease alongside the property.

When selling a property with a solar system installed, the procedure is usually that the home seller notifies the solar power company of the change of home ownership. A reassignment agent from the solar power company will be assigned to oversee the signing of the transfer agreement between the home seller and the home buyer. This could either be done online or by filling paperwork. Once the sale closes, the new home buyer will receive a document confirming the transfer of the solar system from the solar company.Image title

What the options are when acquiring a property with solar panels.

Americans are becoming increasingly aware of the financial cost and environmental hazards that electricity derived from non-renewable sources pose. As a result of this, renewable energy sources like solar power is gaining popularity. Moreover, the decreasing cost of solar panels has played a great role in its popularity. There are certain options that a home buyer should consider when acquiring a property with solar panels. They are as follows:

1. Is the Solar System owned or leased?:

It is better to buy a home from a homeowner who owns the installed solar panels than a homeowner who leased it. The reason is that solar leases are ongoing liabilities to the new homeowner. Assuming a solar lease from a previous homeowner can have a negative impact on your ability to qualify for a good mortgage deal. Moreover, there are various uncertainties with solar leases. One of them is that the manufacturer has the right to change the production guarantee anytime. A development that may leave a home buyer with less value for money paid.

2. Who is the manufacturer?:

Before purchasing a property with solar systems, the prospective home buyer should ascertain who the manufacturer of the solar system is. A solar system produced in America is usually the best bargain. Purchasing a property with an American made solar system enables the new home owner to seek redress under the Magnuson Moss Warranty Act if the solar panels perform below its expectations.

3. Who installed the solar panels?:

Even if a solar panel is manufactured in line with the best industry practices, how efficient it will perform largely depends on the installer. This is why a home buyer should research the reputation of the solar system installer before acquiring the property. If the solar system was improperly installed, then it would perform below expectations. The implication of this scenario is that a home buyer would have paid for a value that would not be received.

4. Length of Warranty:

It is essential for a home buyer to inquire about the length of the warranty offered by the manufacturer of the solar panels. If the warranty period is long, then a home buyer can be certain that the value received would be proportionate to the purchase price paid. A solar system should last long enough to pay for itself and make some profit. This is the definition of a good deal when acquiring a property with a solar system installed. The length of the warranty is the best way for a home buyer to determine if the purchase is a good deal.

Kristina Murphy Headshot
Phone: 240-603-2039
Dated: May 30th 2017
Views: 46
About Kristina: I am a professional Realtor at Exit First Realty located in Crofton, Maryland. I specialize in assis...

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