Did you know that houses with solar installations cost up to 4.1% higher than houses without solar on average?
A marginal increase in price for several years of cash savings in utility power bills is definitely a good tradeoff. That is when the homeowner fully owns the solar installation. What if the owner doesn’t own their solar system outright? What if their PV system is on a loan or even a lease?
Introducing a finance agreement may sound like an additional thread of complexity you don’t need in your life. But, before you make a decision and let your dream house escape from between your fingers, consider the following facts about financed or leased solar systems:
Both Solar Loans and Solar Leases Can Be Paid Off Early
Standard solar leases are usually signed for 20 to 25 years, while solar loans can vary in their terms from 5-25 years. However, a homeowner can pay off their financed solar panels and own the installation fully at any point. When buying a new house with a solar lease or loan, you can ask the seller to pay off their contract and sell the property to you. That way, you get complete ownership of the solar installation without any ongoing payments.
The Ownership Solar Leases and Loans Can Be Transferred Easily
That’s right. Solar leases and loans can be transferred to the new homeowner over a simple and straightforward process. However, you must prequalify for the transfer with a credit check from the solar financing company. As you are also in the process of closing on a mortgage, the common minimum FICO of 640 is rarely an issue.
So, speak to the solar installation company and the solar finance company before you make the decision. They will instruct you on what is needed to transfer the ownership.
You Can Estimate Your Potential Money Savings!
It’s not difficult and tricky to estimate the potential savings you will realize from your new solar system once the aforementioned items are addressed with the solar companies. You see, that system was designed specifically to meet the power needs of the home you are moving into! You will need to know what the monthly power bill of the home was before solar and what the solar payments are. Your savings will be the difference between your monthly power bill and the estimated solar payments plus any incentives.
Audit the Solar System
For your new solar system, you’ll want to know:
- What the remaining term of the contract is.
- What are the warranties or production guarantees (if any)?
- How much is owed every month, and do the payments escalate?
- How much electricity does the system save?
- What incentives are available to you and how do you sell them?
- What solar equipment was used and what are the warranties.
- Is there available monitoring?
You don’t own the leased solar system, so the financing agency is responsible for repairing and maintaining it. That means no maintenance or operational costs. Whereas a solar loan generally does not have a guarantee, the equipment is usually warranted for 20+ years.
Congratulations on your new solar home! Do you now feel confident enough to make a more informed decision about buying a house with solar in Connecticut?
