Most people only consider the cost of solar panels compared to the savings on their electric bill. There is even a tool that google made to help you determine the break-even point. However, there are a few other unintended consequences of solar panels that people often miss when determining if they’re right for you.
Complicates Title/Ownership of your home
Solar panels can be purchased or leased and most choose to lease. The reason being, a lease is less money up front. Also, solar technology is changing all the time. What was good solar technology five years ago is considered inefficient today. As a result, leasing solar equipment can help limit cost and upkeep to ensure your solar solution is up to speed.
The problem with leasing solar panels is what it does to the Title of your home. Leasing solar equipment means the solar company has an asset attached to your house. To protect their asset, they attach a lien, giving them an ownership position on your home.
Complicates selling
This messy Title/Ownership situations can make selling your home tough. Not only is a solar system not the most aesthetically pleasing thing which causes issues, but you now have to do one of two things:
- Get the buyer to agree to assume the lease for the solar panels or
- Pay off the lease to remove the lien and ownership interest the solar company has on your home.
Because number two is expensive, most attempt number one. The problem is the buyer has to qualify for the lease AND the solar company has to approve the lease transfer.
But that’s not the worst of it. Many mortgage companies take issue with how solar companies structure their leases. As a result, the buyer of your home will likely have to jump through several extra hoops to qualify for a loan to purchase your home. This could delay the sale of your home.
Most people think adding solar will increase home value. This isn’t necessarily true. In fact, solar systems make selling your home tougher. That’s not to say you should not go solar, but it is best to have these facts prior to making that decision.
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