Considering a house equipped with solar panels? There’s certainly a growing trend of homeowners turning to renewable energy sources, and solar power is leading the way. But buying a house with solar panels comes with its unique aspects and considerations. Let’s dive into this green energy trend, and explore what you need to know when buying a house with solar panels with Priority 1 Lending.Verify my mortgage eligibility (Dec 1st, 2023)
- Understanding Solar Panel Ownership: Solar panels can either be owned outright or leased from a solar company. If the current homeowners own the panels, they add value to the property, and you can enjoy lower electricity costs without worrying about a lease. If the panels are leased, you need to decide whether to take over the lease or request the current homeowners to buy out the remainder of the lease before you purchase the property.
- Checking the Solar Panel Contract: If the solar panels are leased, carefully review the contract. Make sure you understand the lease terms, maintenance responsibilities, and what happens if the system needs repairs. It’s also crucial to understand the conditions of the lease transfer and whether the solar company requires a credit check.
- Evaluating the Performance of the Solar Panels: Solar panels degrade over time, which means their energy output decreases. Ask for utility bills from the last few years to see how much power the solar panels are generating. You might also want to get the system inspected to ensure it’s in good working condition.
- Confirming the Solar Panel Installation: Ensure the solar panel installation was performed by a reputable company and that all necessary permits were obtained. A poorly installed solar system can lead to roof damage or electrical issues.
- Assessing the Cost and Savings: Solar panels can significantly reduce your electricity costs, but it’s essential to evaluate the savings. Consider how much sunshine the house gets, the cost of electricity in your area, and how much power the solar panels produce.
- Understanding the Impact on Homeowner’s Insurance: Solar panels may increase your homeowner’s insurance slightly because they increase the replacement cost of the home. Check with your insurance provider to get a sense of any potential increase.
- Considering the Impact on Mortgage Options: Some mortgage providers may have restrictions or requirements for homes with leased solar panels. Here at Priority 1 Lending, we can guide you through this and help you find a mortgage that suits your situation.
- Realizing the Environmental Impact: Of course, one significant advantage of owning a home with solar panels is the positive impact on the environment. Solar power is a renewable energy source that reduces reliance on fossil fuels, leading to lower greenhouse gas emissions.
Buying a house with solar panels presents unique opportunities and challenges. Here at Priority 1 Lending, we’re committed to helping you navigate these complexities. Contact us today to discuss your options and discover how we can assist you in achieving your green homeownership dreams.Show me today's rates (Dec 1st, 2023)