Buying A House That Has Leased Solar Panels

Other questions when buying a house with leased solar.

Buying a house that has leased solar panels.

What do i need to know about buying a house with solar panels. Fully owned solar panels. Buying out the remainder of your lease allows you to own your solar energy system before you sell your home. If you need to finance your solar panel purchase the most cost effective way to do it is to use a home equity loan or a home equity line of credit.

Be sure to read over all the agreement details and ask as many questions as you can. The location was a big draw as was at least initially the fact that the red pitched roof of the two car garage was outfitted with 17 solar panels. When you re selling a home with a leased solar panel system on the roof there are options outside of canceling the leasing arrangement. This could raise the homebuyer s debt ratios.

Solar leases are typically for a 20 year term and can be costly to buy out. In most cases where solar panels were installed the panels were fitted free of charge by a solar power company. The homeowner then leased the panels to the power company usually for a 25 year term. Homeowners had two options.

You may be able to transfer the lease to the new homeowner buy out the remainder of the lease and have the system removed or purchase the solar panel system at market value and leave it on your roof. Buying a house with solar panels might be worth it. When you own the solar panels you remove the solar lease from the home sale equation and boost your home s market value. Choosing whether to buy a house with solar depends on the financing and if a lease or ppa is involved whether the agreement and installation fit your life.

Pay the rest of the lease. Buying a house with solar panels in a lease ppa. That way you can sell the system as part of the home and command a higher selling price. Before you buy you ll want to find out more information about the lease terms.

In order for the sale to be completed the buyer will need to agree to take on the lease or ppa otherwise the seller will need to have the solar panels removed usually at a significant cost. If the home has leased solar panels buyers need to find out the lease agreement details including monthly fees and the contract term. Some solar panel leases have escalating payments. Because your house serves as collateral these.

We d get to do our bit for the planet. This can be a big headache for the seller enough that it can cause a sale to fall through. Obtaining mortgage loans with leased solar panels can be a bit more complicated.