Buying a new home can be an exciting venture. And stressful to some extent as well. But sometimes you are never really prepared for what to expect. And you can say that again for purchasing a house with solar panels. It may sound like a sweet deal upfront, but there’s more to it if you pay close attention.
While most people don’t know how they feel when it comes to this, it is still essential to know. That will save you many headaches later. Many homes use solar energy and have a couple of panels for that. And it is not uncommon to buy one of those homes. But isn’t it better to know what that means for you as the new owner?
The knowledge can come in handy in ensuring that you thoroughly enjoy the perks of having solar panels in your home without going through the hustle of installing one. And it would be best if you did not forget the expense of the same. Below, we discuss four scenarios you should expect when you buy a house with solar panels.
But before that, you should take your time to consider some aspects before you put your signature on the agreement of buying a house with solar panels. Most of these factors largely depend on the type of solar installation the previous owner had.
The four common scenarios you can expect when you go looking for homes with an already done solar installation are;
- solar panels acquired through solar loans.
- entirely owned installed panels.
- Panels bankrolled by PACE.
- chartered panels
It may be difficult for someone new to solar energy to understand what these scenarios mean for the homeowner. Read along to find out more.
1. Solar loans
The installation of solar panels can be costly. Although some companies can install the boards free of charge if you pay them, the process is still expensive. It is quite common for homeowners to finance the installation of solar panels through loans. These solar loans can either be insecure or secure.
Even so, the loan remains the liability. And that is regardless of whether the property’s ownership changes hands. That means that when you buy a house with solar panels in this scenario, you do not have to make any extra payments or sign contracts for them. When you are trying for a loan for your newly bought home, if this is the case, Prime Energy Solar can help you getting a loan and repairing, rectifying them.
The only thing that may be a limitation is the price the homeowner may charge for the home. The price tag may be a reflection of the loan the previous owner paid for the panels. Even so, it is still considering the unique perks you will enjoy in the long term.
2. Chartered panels
Many homes have solar panels on lease. And if you get a good deal for the house, there are still a couple of things you should consider. The first thing you should do is find out more about the terms of the lease.
You can start by going through the original contract and knowing what you should do. The current homeowner will usually be sending monthly installments to the company that set up the solar panels. And when you buy the house, that responsibility automatically moves to you.
You can therefore start by asking the current owner a couple of questions on the lease terms. It would be best if you asked the owner about the monthly fees you need to pay. And as much as the lease’s length may be an average of 2 decades or more, it is still important you know how much time you have left to pay the lease. That usually affects the cost and the liability timeline. But perhaps the most critical question to ask is whether the payments will increase. It is no secret that the monthly rates go up now and then, and it is better to prepare yourself for the inevitable.
The leasing company can transfer the lease to your name swiftly. And you should know that that can impact your mortgage qualification should you ever need one. The debt to income ratio will also increase significantly. But are you sure that you are financially stable enough to take on the responsibility? If so, then you are good to go.
3. PACE bankrolled panels
Although the person who takes solar loans is attached to it, PACE financing is a bit different. With PACE, the property is the one attached to it. And the owner will make payments through taxes of the property. The same goes for you when you buy a house with this scenario.
But it is still vital that you go through the terms of the financing. And you can also schedule a meeting with the financing company. It would be best if you did all this before you buy the house you are eyeing. Although PACE financing is a quire scenario for many potential buyers, it is always worth it. Indeed, the payment can weigh you down for a start, but the benefits are more eventually.
4. Entirely owned panels
Some homeowners may decide to pay upfront for their panels. And if you find a house with this kind of the previous owner, then you are in luck. It is usually the best scenario for buying a home with solar panels. All that you have to do is pay a potentially more fee than you first anticipated. But otherwise, there are no strings attached.
Solar panels have numerous advantages. You can benefit from this green energy in more than just the usual financial perks. Although not many people will like the idea of buying a home with a solar system installed, it is still a great idea. You save a lot on the installation costs, and you always get to enjoy a green life.
But even so, you should not go into an agreement blindly. Instead, take time to review the previous owner’s terms, contracts, and agreements. That way, you know what to expect and how to deal with the situation. You should also note that not all the scenarios mentioned in this article are ideal for you. It is beat if you choose what best works for you without hurting you financially.