Five things to consider before you buy a home with solar already installed.
If you're in the market for a new home, you may come across a property that already has solar panels installed. This can be an attractive feature as it can potentially save you money on your energy bills while also reducing your carbon footprint. However, before you jump in, there are some important things to consider. Here are five key factors to keep in mind when purchasing a home with solar panels:
1. Existing loan or lease on the solar panel system. The first thing to consider is whether there is a loan or lease on the solar panel system. This is important because these agreements can have a significant impact on your finances. In some cases, the loan or lease amount can be as high as $40,000, and if it's not paid off at the time of closing, you'll need to assume that loan. This means that you'll not only have to qualify for the financing for the house, but you'll also need to qualify for the cost and the assumption of the lease on the solar panel system. Be sure to carefully review the terms of any existing agreements before making an offer on the property.
2. Manufacturer and installer of the solar panels. It's also important to find out who manufactured and installed the solar panels. You want to ensure that the company is still in business and can provide service and repairs if needed. You'll also want to check if parts are still available for the system. Knowing the manufacturer and installer of the solar panels can help you determine the level of support you can expect from them in the future.
"Purchasing a home with solar panels can be a great investment."
3. Warranty on the solar panels. When it comes to solar panels, warranties are essential. You'll want to find out if there is a warranty on the panels and, if so, whether it's still valid. This goes back to the second question about the manufacturer and installer still being in business. You want to make sure that if you need service on the solar panels, you have a company that stands behind the product and can come and fix it. Additionally, make sure that the warranty is transferred to you at the time of closing; otherwise, it's essentially worthless.
4. Average monthly electric bill with the solar panels. Another important consideration is the average monthly electric bill with the panels installed compared to what it was before the panels were installed. This will give you an idea of how efficiently the panels are working and whether they're providing a good return on investment. If you're investing $30,000 in solar panels, you want to make sure that you'll be able to recoup that investment over time.
5. Insurance coverage for the solar panel system. Finally, you'll want to check with your insurance company to see if they cover the solar panel system. You're taking on a significant obligation when purchasing a home with solar panels, so you want to ensure that you're protected in case of damage caused by natural causes, such as hailstorms.
Purchasing a home with solar panels can be a great investment, but it's important to do your research and ask the right questions. By taking these factors into account, you'll be able to make an informed decision and enjoy the benefits of solar power for years to come. If you need guidance through this process, don't hesitate to reach out to us by phone or email. We’d love to help you.
