Q: To Invest or Not Invest in Solar Panels
Here’s what you need to know before installing solar panels on your home.
Should you install solar panels on your house? I believe you can get great savings by doing this, but they’ll cause some issues when selling your house.
For example, when selling a home with leased solar panels, your buyer has to qualify to make payments on that solar system. This may increase the buyers assumed monthly payment by $200 - $300. To figure out whether they can add this expense to their debt-to-income ratio, they also have to rerun their credit. Sometimes they just can’t make it happen, which then kills the deal entirely.
"When selling a home with leased solar panels, your buyer has to qualify to make payments on that solar system."
In this market, many of my buyers ask me to write offers that basically ask the seller to pay off their solar leases entirely at closing. If you’re a seller, you definitely don’t want this because it can cost you $10,000 to $20,000 if the buyer isn’t willing to make a deal without this condition.
Now, I did mention that you can get great savings by investing in solar panels, and by that, I mean they can significantly lower your monthly utility bill. However, if you’re not in your home very often or plan on selling it within the next five years, they’ll benefit the home’s next owner more than you. Also, appraisers don’t always know how to appraise a home with solar panels.
If you’d like to talk more about whether solar panels are right for your home, don’t hesitate to give me a call. If you have any other real estate questions, feel free to reach out to me as well. I’d love to speak with you.