8 questions to ask before buying a house with solar panels
Key Takeaways
- Buying a home with solar panels, if properly evaluated, can provide long-term savings and added value to the property.
- Always check whether the solar panels are owned or rented before placing a bid.
- View system documentation, including installation date, warranty details and utility savings.
- Understand how solar agreements can impact financing and insurance requirements.
- Ask if the system can be upgraded in the future to meet your long-term energy needs.
Now that the solar panels are on it approximately 7% of the homes in the US, it is becoming increasingly common for buyers to consider homes already equipped with this energy-saving upgrade.
These devices can be a great addition whether you are looking for one home in Plano, Texasor have made a bid for a house in Los Angeles, CA.
Although solar panels can be a great advantage, they also come with a number of things that you should consider before making a bid. This guide will walk you through the questions to ask, the key benefits and potential challenges of buying a home with solar panels.
1. What are solar panels and how do they work?
Solar panels are devices designed to capture sunlight and convert it into usable electricity for your home. They consist of photovoltaic (PV) cells that absorb energy from the sun and convert it into energy that your home can use.
Most solar systems are mounted on the roof, where they receive the most sun exposure. The number of panels depends on the home’s energy needs, and some setups include a battery to store extra power for use at night or in the event of a power outage.
For home buyers, solar panels can mean lower energy bills and a smaller carbon footprint. They are clean, renewable energy option that makes a home more efficient – and possibly more attractive later if you decide to sell.
>>READ: How do solar panels work?
2. Why should you consider buying a house with solar panels?
Buying a home with solar panels already installed can be a good move, especially if you want to reduce energy costs or reduce your carbon footprint. Solar panels provide clean energy and are allowed increase the total value of the house. They can also provide long-term savings by reducing monthly electricity bills. For many buyers, it feels like they’re getting an edge in energy efficiency without having to invest in the installation themselves.
3. Do you own or lease the solar panels?
One of the most important things to ask early in the purchasing process is whether the solar panels are fully owned or leased. This detail can significantly influence your decision.
If the homeowner owns the panels, you usually don’t have to worry about additional monthly payments or transferring a lease. The value of the panels is usually included in the sales price.
However, leasing systems can be more complex and involve additional responsibilities for the buyer. Like Jason Sumlanski, chief solar designer at Florida Solar Design Groupexplains, “When buying a home, a leased solar panel system is not an asset, it’s a liability. Do your research before taking out a loan or lease associated with the system.”
If the panels are rented, you may have to take over the rental agreement. This may affect your financing or debt-to-income ratio. Be sure to check the rental conditions and see whether the provider allows a smooth transfer of the agreement. You will also want to confirm how long the lease lasts and what maintenance responsibilities fall on you as the new owner.
4. What is the condition of the panels and the roof?
Solar panels are built to last, often with warranties ranging from 20 to 25 years. Still, it is important to inspect the current state of the system. During the home inspection, ask whether the inspector takes a good look at the roof and solar system. You may also want to ask the seller for documentation showing the installation date, manufacturer information, and maintenance history.
Check system performance
Before focusing on age or appearance, make sure the system is actually producing energy as expected.
Rick Irizarry, Sales Director at Solar farm in upstate New Yorkshares: “Most systems include a monitoring app that allows you to track energy production, which is a good indication if everything is working properly. It’s also important to know if the original installer is still active, as they are often the best source for service and warranty support.”
Because solar energy systems are not always thoroughly assessed during a general inspection, it may be useful to call in a specialist.
Parker Jensen of Utah based Garner Energy explains, “Make sure the system is working as expected, not just that panels are installed. Solar issues are often overlooked during a standard home inspection, so having the system assessed by a professional can help avoid surprises.”
Assess the condition of the roof
Solar panels can make it more difficult to assess the roof, but its condition is just as important as the system itself.
Jeff Guthrie of Phoenix roofing and repair advises, “Have a licensed roofer inspect the roof beneath the solar system. Panels can hide damage or an aging roof, and removing and reinstalling them later for repairs can increase the total cost by thousands of dollars.”
Discover hidden costs
Even if the panels themselves are in good condition, some parts may need to be replaced sooner than expected.
The sundial notes, “Inverters typically last 10 to 15 years, which is much shorter than the panels themselves. Ask when it was last replaced, as a new inverter can cost $1,000 to $2,000 or more.”
Check system components
If the system includes a solar battery for energy storage, ask about its condition and remaining lifespan. Replacing a solar battery can be expensive, so it’s helpful to know if you need to budget for this.
>> Read: Should You Get a Roof Inspection Before Buying a Home?
5. How do solar panels affect your financing and insurance?
Some lenders consider solar leases or power purchase agreements to be a form of debt. That means the monthly payment associated with the solar agreement can be counted when calculating your loan eligibility. If the panels are owned, this usually won’t be a problem.
To better understand how these additional costs impact your overall budget, you can take a housing affordability calculator to estimate what you can easily afford.
You will also want to let your home insurer know about the solar system. In many cases, insurance can easily cover solar panels attached to the home, but it is best to verify this in advance so that there are no surprises later.
6. Will you actually save on energy costs?
Not all solar panel setups are equal. The energy savings of a house depend on panel sizesystem efficiency, local climate and your own energy consumption. Ask the seller for recent utility bills so you can compare them similar homes in the area.
If the home has a net metering agreement, you may be able to earn credits for excess energy that the system sends back to the grid. This can lead to even more savings, but it’s important to contact your local utility company to understand how it works in your area.
Ultimately, understanding the details behind the system will give you a clearer picture of the potential savings. Brian Pascoe, Chairman of Typically solar energysays, “Solar energy can add real value to a home, but only if buyers understand the details. Confirm ownership, review production records, and check the condition of both the system and roof to avoid unexpected costs.”
7. Can you upgrade or expand the system?
Maybe you’re planning to add an electric vehicle or just want more coverage. If you think you might want to upgrade the solar system In the future, be sure to ask if the current setup allows this. This may include checking whether the inverter has capacity for additional panels or whether the roof can support more solar energy installations.
8. What are the pros and cons of buying a house with solar panels?
Buying a home that already has solar panels installed can seem like an attractive perk. After all, solar energy promises environmental benefits and potential savings on your energy bill. Before you get too excited, though, it’s smart to weigh the pros against the potential cons.
Benefits of buying a house with solar panels
- Lower electricity bill: Solar panels can significantly reduce your monthly energy costs by generating your own electricity.
- Environmentally friendly friendly
- Possible tax incentives
- Higher home value
- Reduced exposure to rising energy costs
Disadvantages of buying a house with solar panels
- Rented panels can be complicated
- Maintenance responsibilities
- Possible roof repairs or restrictions
- Uncertain savings
- Homeowners Association (HOA) Restrictions.
Not all solar installations are created equal, and poor workmanship can lead to costly problems.
Brock Hayward from Excel roofinga roofing company based in Denver, CO, explains, “Improperly installed hardware is one of the biggest concerns, as it can lead to roof damage or leaks over time. Buyers should also consider the age of the roof, as removing and reinstalling panels for replacement can increase the total cost by thousands.”
Frequently asked questions:
Who installed the solar system, and when?
Ask for the name of the installer and the installation date. Knowing who installed the system can help you verify its quality, and the timeline will give you an idea of how much life is left in the equipment.
Will solar panels be transferred to the new owner?
Is there a warranty and is it transferable?
Most solar panels come with a manufacturer’s warranty that can last 20 years or more. Be sure to ask if the warranty still applies and if it will be transferred to you after the sale.
What are the terms of the lease or agreement if the system is not owned?
If the panels are leased or covered by a power purchase agreement, review the full contract. Find out how long the agreement runs, how much the payments are and whether the lease can be easily transferred to a new owner.
How much have the sellers paid for electricity since installing solar?
Request recent energy bills to gain insight into actual savings. This way you can see how well the system performs and whether it meets your energy needs.
Is it really worth buying solar panels for your home?
For many homeowners, yes. Solar panels can reduce energy bills, increase the value of your home and reduce your carbon footprint. However, factors such as sunlight, the condition of the roof and whether you buy or rent panels affect the overall value. If you plan to live in the home for a long time, they are often a smart investment.
