Buying a home with solar panels can be a fantastic opportunity to save on energy bills while reducing your carbon footprint. However, it’s essential to ask the right questions to ensure the solar system aligns with your financial and long-term goals. Here are 3 key things to know before purchasing a home with solar.
1. How Was the System Paid For?
The way the solar system was financed impacts your ownership, payments, and long-term costs. Before purchasing, find out whether the system was leased, financed through a loan, or paid for outright.
Leased Systems: If the system is leased, you’ll need to review the lease agreement. Important details include:
Years Remaining: How many years are left on the lease?
Payment Terms: What are the monthly payments?
Annual Escalators: Does the lease have an annual payment increase (typically 1-3%)? If so, factor this into your long-term costs.
Transfer Process: Ensure you qualify to assume the lease and check if there are any transfer fees.
Financed Systems: If the system was financed, ask:
How much is left on the loan?
Can the loan be transferred to you, or will it need to be paid off before the sale?
Owned Systems: If the system is paid off, this is the simplest scenario. The system becomes part of the home purchase, and you can benefit from energy savings without ongoing payments.
Understanding how the system was paid for ensures there are no surprises and helps you negotiate accordingly.
2. What Is the Age of the Roof and the Roof Penetration Warranty?
The condition and age of the roof are crucial when buying a home with solar. While solar panels can last 25-30 years, the roof they’re installed on may need replacement sooner.
Roof Age: Ask about the age and type of the roof. If the roof is older and nearing replacement, removing and reinstalling the solar panels can add significant cost.
Roof Penetration Warranty: Solar systems often come with a roof penetration warranty, which covers any leaks or damage caused during installation.
Verify the warranty’s expiration date.
If the warranty is close to or already expired, this could be a negotiation point when discussing the sale price.
Why This Matters: If you need to replace the roof during your ownership, you’ll have to factor in the added cost of temporarily removing and reinstalling the solar system—a cost that can range from $1,000 to $5,000 or more, depending on the system size and complexity.
3. Who Was the System Installed By, or Who Is Providing the Lease?
It’s important to know who installed the system and who is responsible for its maintenance and warranties. This information helps you determine the system’s reliability and future servicing options.
Owned or Financed Systems: These systems are reliant on the original installation company for warranties, maintenance, and repairs. Ask:
Who installed the system?
Is the company still in business?
What warranties are in place for labor, equipment, and production?
Leased Systems: For leased systems, the leasing company (not the installer) is responsible for maintaining and guaranteeing the system. Confirm:
Who the lease provider is and whether they are a reputable company.
What services and guarantees are included in the lease (e.g., production guarantees, system monitoring, and repair coverage).
Checking Company Ratings:
While researching, keep in mind that larger solar companies often have more reviews, including low ratings. This is common with new technology like solar and does not necessarily reflect the overall quality of the system or the company’s performance. Focus on trends rather than individual complaints.
By verifying the installer or lease company, you ensure the system will be well-maintained and supported throughout your ownership.
Conclusion
Before buying a home with solar, it’s critical to gather details about the system’s financing, the roof’s condition, and the companies responsible for installation or maintenance. Understanding these three points will help you make an informed decision, negotiate more effectively, and enjoy the full benefits of a solar-powered home. With the right information, you can confidently invest in a home that offers both sustainability and energy savings for years to come.
Comments