Purchasing a home is not only a significant financial investment but also a major lifestyle change, particularly if you’re moving with family. Among the many benefits of homeownership is the opportunity to achieve greater energy independence through renewable energy sources. One rising trend among homeowners is opting for properties with solar panels already installed, making it easier to meet eco-friendly goals.
What to Expect When Buying a Home with Solar Panels
As you begin your home search, having a list of priorities is crucial—and incorporating solar panels into that list can be beneficial. Homes equipped with solar systems are likely to command higher resale prices, and realtors are increasingly promoting the advantages of solar energy in listings. This means you won’t have difficulty finding solar-equipped homes; just remember to include it in your search criteria.
If you’re considering buying a house with solar panels, there are several important factors to keep in mind.
Financing Considerations
When it comes to financing a residential solar system, there are three main options: purchase, lease, and solar power purchase agreement (PPA). It’s essential to understand which option best suits your needs as it can affect the home resale process.
Purchasing the System
If you own the solar system outright, you can factor its value into the home’s asking price—similar to other home improvements like decks or remodeled kitchens. The price increase should reflect how much money you’ve saved on your electricity bills and how long you’ve had the system in place. On average, homeowners save between $10,000 and $30,000 over the lifespan of their solar system, which can be a compelling selling point.
Getting a Loan
Opting for a loan to finance the solar installation allows you the flexibility to spread payments over time while benefiting from tax credits such as the federal solar investment tax credit (ITC). However, when selling your home, it’s crucial to review your loan agreement for any stipulations, such as needing to pay off a home equity loan entirely before selling. Some lenders may allow you to transfer your loan to the new homeowner, provided they meet certain credit requirements.
When considering a loan, think about both your immediate and long-term plans. If you plan on selling in the future, it’s essential to choose a financing option that aligns with your goals.
Leasing the System
If you’ve leased the solar panels, it’s typically possible to transfer the lease to the new homeowner, assuming they meet the leasing company’s credit criteria. Be aware that there may be transfer fees associated with this process, so it’s wise to account for those costs during the sale.
Solar Power Purchase Agreement (PPA)
A PPA allows homeowners to procure energy from solar panels without owning them. If you’re selling your home, it’s generally possible to transfer the PPA to the new owner, simplifying the process.
Key Takeaways
Whether you’re looking to buy a home with solar panels or planning to sell one, understanding the implications of financing, leasing, or purchasing a solar system is essential. Solar energy not only contributes to a sustainable lifestyle but can also enhance the overall value of your property. By keeping these considerations in mind, you can make informed decisions that align with your financial and environmental goals.