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BUYING A SOLAR HOME
Everything you need to know before closing
Who owns the solar system?
How much will I save?
Is there warranty coverage?
Buyer Questions
SOLAR - It comes with the house, it's on the roof, and after closing it's yours — including the benefits OR anything wrong with it.
Let's talk about the questions you should ask to find out what you're inheriting and set proper expectations.
What is the transfer process?
Will I still have a utility bill?
Who can I talk to for help?
How will I know if the panels are working?
Are the panels clean?
Has the system been inspected?
Buyer Appeal
The appeal of solar panels, with the promise of lower electricity bills coupled with clean energy, is obvious. If you’re considering buying a home with solar, however, there are many factors worth considering to ensure you have a great experience.
BUYER FAQs
- 01There are a few ways that you can have a general idea if the solar panel system is working or not. A primary component of any solar system will be the inverter or gateway that is typically near the main service panel. This device usually will have a display or lights that will indicate the current state of the system. Solid green lights and blue lights are usually good. Any flashing lights or red or yellow lights may indicate a problem. Another way to know if a system is producing may be to look at the most resent utility bill for the property. Depending on the rate structure, there might be export credits shown the bill. To know for sure, though, we recommend hiring a solar electrician who can perform a complete and proper system inspection. Telesis Solar can perform these inspections throughout Arizona. Contact Us to schedule an inspection.
- 02The home seller had three options when adding solar: Purchase a system outright with cashPurchase a system with financing via a solar loanLease solar panels from a third-party company; Real estate contracts vary by state, but many include language that specifies whether panels are owned or leased.Mortgage underwriting guidelines require the panels to be owned before an appraiser can consider whether they add “contributory value” to the property. If the owners took a loan to finance the system, that loan must be paid off before the home sale closes. The appraised value of the system is included in the price of the home and the seller, therefore, has the obligation to pay off the loan.If the solar panels are leased, you as the buyer will be assuming a contract with a third-party solar company. That means monthly payments, usage terms and restrictions on modifications. Read any lease agreement carefully before committing. A financed or leased solar system uses a UCC-1 financing statement (often filed as a fixture filing) rather than a traditional home mortgage lien. This does not prevent the sale from closing, however, it must be addressed by either the paying off of the solar loan or the transfer of the lease to you as the buyer.
- 03The transfer process can be very straightforward and simple. The first step would be to identify the ownership status of the system. Most will fall into one of the following categories: Own outright. If the system is owned outright then the system registration for the inverter/monitoring provider should be transferred. This is usually free and most inverter companies have a simple ownership transfer process. Lease. For leased systems, the sale of the home cannot close until the lease is transferred to the buyer. Most lease companies have specialized lease transfer teams and coordinators that help make the process easy. The buyer would need to qualify with good credit or pay a small transfer fee usually not greater than $300. Finance/Loan. As with a lease, the financier should be informed prior to closing. While the loan may be transferred, most sellers will include the appraised value of the system with the value of the home and then pay off the loan. This approach works out well for the buyer since they would not assume a separate monthly payment and would have a paid off system.As early as possible during the contract process, contact the solar provider's transfer team immediately. Any delays that wreck closings are almost always late starts rather than slow companies. Ask what the transfer costs. Most providers charge a transfer or assumption fee, several charge a different amount depending on whether an escrow company handles it, and it is far easier to allocate in the purchase agreement than to discover moments before closing.
- 04Most customers have very basic grid connection fees from their utility company that range from $5-$20 monthly on average. Some have even cut their utility bill to $0, with a solar panel system that matches their energy use. At certain times of the year the utility company may even owe you money because of the excess energy you have produced.What your experience will be depends on many factors such as the following:How much energy does the solar system produce vs how much energy you use. (If you use more than what is produced then you will be purchasing energy from the utility at their rate). WHEN you consume energy. If you consume energy a lot during on-peak times which are generally the most expensive times of the day then you may have a higher utility bill than you want. Also, if you consume a lot of energy at night when the sun is not shining then you pay the utility for that usage. So timing of consumption matters. The utility rate plan you are on. It will be important to understand how the utility charges you. One study shows that increased utility understanding can cause a person to save 12% on utility costs on average. Weather. Some climates, like Arizona for instance, have mild winters and extremely hot summers. It's common to have low or no electric costs in winter months but then have higher than desired costs during summer months when AC usage is at its peak. We understand that understanding utility bills and how they correlate with solar can be challenging and even intimidating at times. Feel free to contact us for a brief consultation where we can walk you through it. In addition, take a look at our ENERGY SAVINGS TIPS page which provides guidance that will be helpful.
- 05At it's core, solar is simply a combination of a few electrical components added to a home. Therefore, any solar electrician or service technician should be able to provide ongoing support should there be any service needs in the future. Most technicians will know how to get failed components covered by manufacturer warranties which are typically 10-25 years. TELESIS PROTECT is a service we offer that provides system monitoring, panel cleaning, and discounts on repair and maintenance needs.
QUESTIONS? CONTACT US TODAY
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