How do you sell a home with solar panels? That may seem like an easy question to answer, you just sell it, but it is really not that easy.
Solar panels on homes more common
Solar panel installations on homes are becoming more common. People today are becoming more concerned about high energy costs and desire to save money. When selling a home with solar panels the owner will need to know about solar agreement that is in place. Some solar companies offer lease agreements and others offer purchase agreements. Lease agreements can be straightforward with the property owner paying a monthly fee to lease the panels from the company. These leases range from 5 to 20 years, typically. It is possible for the leases to even run longer than 20 years.
How were the panels purchased?
Alternatively, the owner may have a power purchasing agreement. With a power purchasing agreement, the property owner pays for the power being used. This is similar to paying for electricity from the utility company. But with the solar payments going to the solar company. The amount paid each month, depends on the amount of electricity that is used by the homeowner.
Transferring service agreement
When selling a home with solar panels, the parties must ensure that liens are paid off and panels are properly transferred. If a service agreement is in place on the panels, it will also need to be transferred. Not every solar company offer a service agreement. When the purchase contract is written, solar panels should be included.
Another option that the homeowner may have been offered when solar panels were installed was to enter into a payment plan on the panels, until payed in full. With a payment plan on solar panels, the homeowner is likely receiving credit from your electric provider for power created. Almost all of these agreements have provisions for the property owner to buy the panels outright. Depending on the agreement with the solar panel company, panels may allow for the loan to be transferred. Who pays off the loan is a point of negotiation between the buyer and seller at time of contract. The lender must be informed if the buyer is to assume the loan.
The process of selling a home with solar panels will require paperwork to be provided to real estate agents. The new home owner can enjoy energy savings just like the seller did, if information is provided and transfer of ownership is completed at time of sale. The process of selling just takes a few more steps and effort.