By: Mushtaq Khan real estate broker
SOLAR POWER SYSTEM FOR YOUR HOME.
Tags: Homes Value in Brampton_House Price in Mississauga_Home Selling System in Bramoton
SOLAR POWER SysTEM FOR YOUR HOME?
There are a few options for getting a solar power system installed for your home. Pay cash and buy the system outright, takeout a loan to buy the system, or lease the solar power system from a company who offers a lease option. Buying a solar power system outright makes the most sense if the homeowner has cash to use for the install as then the homeowner owns the solar power system. By paying upfront the homeowner also saves on interest costs associated with the loan and does not have any extra liens recorded on their property due to the loan.
The lease options solar companies offer are a little more complicated and can affect a homeowner’s ability to sell their home. Under a solar lease the homeowner is basically renting the solar power system and the leasing company usually requires all benefits and incentives (including the federal tax credit) to be signed over to them. Lease terms usually require a commitment of 15/20/25 years which can pose a problem as the lease contract.
What that means is that any home buyer who buys your home would also have to agree to take over the solar power system lease as a condition of the sale. Not every home buyer may be willing to buy a home along with a solar power system lease which as a result makes the home harder to sell.
With a leased solar system if you are required to sell your home with the lease in place then that will hurt the value of your home as many homebuyers don’t want to get stuck with a lease for solar equipment they know nothing about or because it is older solar equipment and outdated. As a result leased solar systems may not be in the homeowner’s best interest if they don’t plan on staying in the home for at least the length of the lease term.
Where a loan was obtained to buy the solar power system that loan will need to be paid off upon sale of the home in order to clear any liens that may be part of the loan. Solar power loans are generally not assumable which means the loan cannot be transferred to a home buyer.