Buying a Home With Existing Solar Panels System
There are several factors to consider when buying a home with existing solar panels. One important consideration is whether the solar panels are transferred to the new owner. If they are on lease, the new buyer must take over the lease terms and may have to renegotiate with the solar company. If the panels are yours, you can take them with you. Be sure to make sure that you have agreed to transfer them as part of the purchase agreement.
Examining the seller’s current energy bills
Examining the seller’s current energy bill is an important step in evaluating the home’s energy savings potential, as it will let you gauge how much you can expect to save through avoided electricity costs. It will also let you know about available solar incentives in your area. If the seller hasn’t taken advantage of these incentives, ask for them if they have.
Inspecting the solar panel system before buying a home
Before buying a house, you should inspect the solar panel system. It is not necessary to be an expert in solar technology to do a proper inspection of a home’s solar panels. However, you should know that the quality of the system should be at least good enough to avoid future problems. A third party solar inspection company can provide you with an objective assessment of a solar system’s condition.
Getting a mortgage
If your home has existing solar panels, you might have some difficulty getting a mortgage. Lenders must determine whether the panels are owned by the homeowner, whether they are leased, and how the panels were financed. These factors can be found by reviewing your credit report and loan documentation. If you plan to keep the panels, you should make sure you have a copy of the lease agreement to present to your lender.
Getting a PACE loan
Installing solar panels on a home can increase its value by up to 20 percent, according to the U.S. Department of Housing and Urban Development. But major upgrades can be expensive and require a significant financial outlay. Luckily, PACE financing makes it more affordable to purchase solar panels on a home that already has solar panels. Plus, PACE financing is not limited to major upgrades. It can also be used for minor upgrades such as installing new appliances or a better-performing HVAC system.
Getting a private loan
Getting a private loan to buy – and install – existing solar panels is possible if you’re in possession of a good credit score. If you have bad credit, you can delay the solar panel installation until your credit score improves. Getting a solar loan requires you to pay off any existing high-interest debt and establish a solid payment history. Obtaining a solar loan requires no collateral, but you must pay back the loan over time. If you don’t pay your loan off in time, you may get denied, so you should carefully consider whether you’re in a good financial position to qualify for a loan.