Curious about SOLAR? We're seeing more and more solar panels across sunny Colorado. Builders are placing panels on 100% of certain new home communities in places like Erie. Many individual homeowners have opted to add solar to their existing homes. So, how do SOLAR PANELS play into the real estate deal? Who bears the brunt of the cost? Do they add value? Is there a ROI?
Being green is a value of many Coloradans, so there is much interest in solar in a sunny state. It's hard to make it through Costco, without the solar rep calling out to you.
When purchasing solar in new home communities, there are a few options for payment of the system, as it is a separate charge from the rest of the home. Homeowners can either purchase out right, lease or acquire a Power Purchase Agreement, which is paid off by the homeowner at the end of the typically 20 year depreciation. These are intended to be transferred upon the sale of the home and can be negotiated in the sales process.
Homeowners who've added solar aftermarket, can offer to pay off the system prior to closing and transfer of the solar system -OR- sometimes, depending on the situation, Sellers will ask for the Buyer to take on a lease. This can work sometimes, or can complicate the deal's financing. In the current shifting market, a Seller asking for a Buyer to take on such an extra expense would likely be a barrier from selling in a timely fashion. Each deal is different.
One other note regarding solar is that appraisers unfortunately most often don't give much value to solar. If you're considering adding them to your current home, make sure you do the math and weigh in how long you plan to be in the home. This is a nice investment in reducing your carbon footprint, but won't necessarily bring you a huge return when you go to sell your home. Also, some buyers may not want a home with solar. Removing panels can damage a roof.
Solar is a huge purchase and should be well researched, before making the investment. There's a lot of confusion over solar and many real estate agents don't understand it. I have experience in deals involving solar and I've done my research. If you're considering purchasing a home with solar, or adding it to your home, let's talk as I might be able to offer some insight.