Key takeout
Buying a home with solar panels adds long-term savings and property value if properly valued. Always check if the solar panels are owned or leased before making an offer. Check your system documentation including installation dates, warranty details, and utility savings. Understand how solar contracts affect your financing and insurance requirements. Ask if you can upgrade your system in the future to suit your long-term energy needs.
With around 7% of US homes currently stocking solar panels, it is more common for buyers to consider homes that already have this energy-saving upgrade.
These devices can be a great addition whether you’re in the marketplace of Plano, Texas, or offering to a Los Angeles, California home.
Solar panels can be a huge perk, but they also come with a few things to consider before making an offer. In this guide, we will introduce questions to ask questions about buying a home with solar panels, important benefits, and potential challenges.
1. What is a solar panel? How do they work?
A solar panel is a device designed to capture sunlight and convert it into electricity that can be used in your home. They are made up of solar powered (PV) cells that absorb energy from the sun and turn it into a force that can be used in the home.
Most solar systems are mounted on the roof, where the sun is exposed the most. The number of panels depends on the energy needs of your home, and some setups include batteries that store additional power for night use and outages.
For home buyers, solar panels mean lower utility bills and lower carbon footprints. They are clean, renewable energy options to make your home more efficient and perhaps more appealing if you decide to sell them.
>>Read: How do solar panels work?
2. Why should I consider buying a house with solar panels?
Buying a home with already-installed solar panels can be a big move, especially if you want to reduce utility costs or reduce your environmental footprint. Solar panels can provide clean energy and increase the overall value of your home. You can also offer long-term savings by reducing your monthly electricity bill. For many buyers, it feels like they’re off to an energy efficiency head start without investing in their own installation.
3. Do you own or lease solar panels?
One of the most important things to ask early in the purchasing process is whether the solar panels are entirely owned or leased. This detail can have a significant impact on your decision.
If the homeowner owns a panel, you usually don’t have to worry about additional monthly payments or lease transfers. The value of the panel is usually taken into account in the selling price.
If the panel is lease, you may need to take over the lease agreement. This can affect your funding or debt-to-income ratio. Check the terms of the lease and see if the provider allows smooth transfer of the contract. You also need to make sure how long the lease will last and that maintenance responsibilities apply to you as a new owner.
4. What is the condition of the panels and roof?
Solar panels are built to last and often come with a warranty ranging from 20 to 25 years. Still, it is important to check the current state of the system. During an inspection of your home, the inspector will ask you to take a closer look at the roof and solar generator. You can also request a document from the seller that shows installation date, manufacturer details, and maintenance history.
If your system contains solar batteries for energy storage, ask about its condition and remaining lifespan. Replacing a solar battery can be expensive, so knowing if this is a budget is helpful.
>>Read: Should I get a roof inspection before I buy a house?
5. How does solar panels affect funding and insurance?
Some lenders may consider solar leases or power purchase agreements as a form of obligation. This means that when calculating loan eligibility, you can count monthly payments related to the solar contract. If the panel is owned, this is not usually a problem.
You will also want to let your home insurance provider know about your solar system. In many cases, insurance can easily cover solar panels installed in your home, but it’s best to verify this advance payment, as there’s no surprise afterwards.
6. Do you actually save energy costs?
Not all solar panel setups are created equally. Energy savings in your home will depend on the panel size, system efficiency, local climate, and your own energy use. Ask the seller to make a recent utility bill so that you can compare it to similar homes in the area.
If your home includes a net metering agreement, you may be able to earn credits for excess energy that the system sends back to the power grid. This can lead to more savings, but it’s important to check with your local utility company to understand how it works in your area.
7. Can I upgrade or deploy the system?
Maybe you need to add an electric vehicle or more coverage. If you want to upgrade your solar system in the future, check if your current setup is permitted. This includes checking whether the inverter has additional panel capacity or whether the roof can support more solar equipment.
8. What are the advantages and disadvantages of buying a house with solar panels?
Buying a house with solar panels already installed seems like an attractive perk. After all, solar energy promises environmental benefits and potential savings in energy costs. However, it is wise to weigh the benefits against potential drawbacks before getting too excited.
The advantages of buying a house with solar panels
Low electricity bill: Solar panels can significantly reduce monthly utility costs by generating unique power. Eco-friendly tax incentives increase in high housing value decreases in increased energy costs
The disadvantages of buying a house with solar panels
Rental Panels Responsible for Complex Maintenance Roof Repairs or Limitations Uncertain Savings Homeowners Association (HOA) Limitations
FAQ:
Who installed the solar system?
Ask the installer name and installation date. Knowing who you installed your system on will help you see its quality. The timeline shows how long your device has left.
Will the solar panel be transferred to the new owner?
Is there a warranty, is it transferable?
Most solar panels come with manufacturer warranty that can last for more than 20 years. Be sure to ask if the warranty is still in place and if you want to transfer it after sale.
If the system is not owned, what are the terms of the lease or contract?
If the panel is leased or is based on a power purchase agreement, check the full agreement. Find out how long the contract lasts, the amount of payments, and whether the lease can be transferred smoothly to the new owner.
How much has the sellers paid for electricity since installing solar?
Request a recent utility bill to understand your actual savings. This will help you see if your system meets its performance and energy needs.
Is it really worth getting a solar panel in your home?
For many homeowners, yes. Solar panels can lower your energy bill, increase your home value and reduce your carbon footprint. However, factors such as sunlight, roof condition, and whether or not to purchase or lease the panel will affect your overall value. If you plan to stay home for the long term, they are often clever investments.
