Owning Solar: Should I Finance or Mortgage?
If you are buying your home with a mortgage, you will be financing your solar system one way or another. If the system is paid off and the seller is simply conveying you the system in the sale of the house then you will be financing the system with the mortgage. If you are buying a home with a financed solar system attached to it, your solar system will already be financed with a third-party. One way or another, this system is going to be financed. The only way this doesn’t happen is if you're buying a home with cash– then you're self financing your home and solar.
Sixty percent of owned solar is financed by a third-party with a solar loan.
The decision to make here is whether you’re going to utilize the existing financial tool (if the solar has a loan on it) or if you want to utilize the mortgage as the finance vehicle. The ability to assume a loan will depend on credit worthiness and whether the payment will be lower with the solar loan or mortgage payment. In most cases, paying off the solar system in the purchase of the home will be a better financial move because it will result in a lower monthly payment.
This is simply because a mortgage is typically going to have a lower interest-rate and longer-term. This may give some buyers pause– but remember, this increased monthly cost is offsetting a higher monthly cost that the homeowner would be otherwise paying to the local utility company. Oftentimes new solar owners forget this fact, instead seeing it as an additional expense to what they will need to pay the utility company. The utility company payment will only come into play when the solar does not produce enough energy for the needs of the home.
Decide if You Want or Need Additional Warranties and Services
Again, based on the information gathered, you need to decide if you're comfortable with the warranty level of the system. The great thing about solar is that it has no moving parts and the panels will last for a very long time. The point of failure is more likely going to include the inverter and batteries.
Are you comfortable with the warranty that the system came with?
If you're not, and or if the installer is no longer available because they are no longer in business, or the warranty has expired and you want to purchase extended warranties, or you need to get a solar system check-up, contact Spark to have a Solar Pro come and do a full check-up on the system to assess its needs. Plus, we’ll provide any service as needed. Contact Spark to schedule a licensed professional to come do a full solar check-up.
If you're not comfortable with the level of warranties that the solar system comes with, again, contact Spark in order to see if you're able to obtain additional warranties for your system. If you would like additional services as well, such as annual cleanings or pest-proofing of your system to keep the birds and little critters out, then contact Spark to be connected with reliable industry professionals.
