What To Know When Purchasing a Leased Solar Home
Leased solar panels allow homeowners to reap the benefits and low costs of clean, renewable energy without having to invest in a full home system.
Buying a house with leased solar panels requires an extra level of care and due diligence as the lease terms and agreement must be transferred into your name. However, you can decide whether you want to own it or keep the ownership with the lease company.
In order to make this decision, you need to understand the relationship going forward with that third-party ownership company. Secure a copy of the contract that you will be assuming and carefully review that contract. If after reviewing the contract you are OK with what you find, then the decision is simple and you may want to continue down that path of least resistance and assume that contract.
If the contract does not excite you, or what you find there is concerning to you, then you have other options. Remember: all third-party ownership agreements can be bought out at the time that home is being sold. This process does take time though and this is one of the most important decisions regarding assuming a solar system with a new home. If you are going to buy it out, you need to notify the lease company as soon as possible so the system can be purchased with the purchase of the home as part of escrow.
Pros of Buying a Home with Leased Solar Panels
Now more than ever, there are more homes with leased solar panels on the housing market as easy-access sustainable energy is gaining popularity all over the world. Most people are not selling their homes because of their solar lease, so there are still many great benefits of continuing the contract as a new buyer.
Aside from the carbon offset of adopting clean, renewable energy, purchasing a home with leased solar panels may provide buyers with the following benefits:
Low, expected electricity costs for the remainder of the lease agreement.
Home purchasing power from a lower potential pool of buyers deterred by complicated lease agreements.
No future system maintenance costs or concerns, as everything is handled by the lessor.
Cons of Buying a Home with Leased Solar Panels
Of course, homes being sold with solar panel leases do add an additional consideration to the already overwhelming home buying experience. For this reason, some house hunters will not even consider purchasing a home with leased solar panels simply to avoid another potential headache.
In addition to the extra paperwork, buying a home with leased solar panels may also result in one or more of the following drawbacks:
Potential transfer costs (if included in the contract).
Increased monthly payments for low-electricity users.
Another credit check and other potentially disqualifying measures.
Going solar for the previous homeowner was a decision they made and now that home is a green home. Having the right information will help you make the decision about how you want to move forward as a new green homeowner.
