An annual average growth rate of almost 50% is huge, and that’s what solar power experienced over the last decade. Thanks to government funding programs and declining costs, there’s now enough installed solar capacity nationwide to power about 16 million homes.
The solar industry employs 250,000 people nationwide, generating more than $18 billion dollars in economic investment. As electricity solar panels continues its steady growth, more homes than ever will come with installed panels.
Are you looking at buying a house with solar panels? There are a few things you should know before you close the deal. Keep reading for information about what happens when you buy a house with solar panels.
Solar Panels, Loans, and Your Mortgage
There are so many great home solar companies now driving many homeowners toward solar.
Did you find the house of your dreams, and it also happens to have solar panels? Depending upon the type of installation the current owner has, solar affects the mortgage.
PACE Loans
Did the owner use a property-assessed clean energy (PACE) loan? State and local governments finance PACE loans to encourage energy-efficient upgrades.
This is a good way for homeowners to get competitive long-term financing at low-interest rates. A PACE loan helps homeowners with no up-front costs and the benefits of solar.
The catch? When a homeowner has a PACE loan, the solar company puts a lien on the property. The lien comes off when the loan is paid in full.
The PACE loan takes precedence over any other loan. This means most lenders won’t give you a mortgage for a home with a current PACE loan. So before you get too far into the process, find out if there’s a PACE loan for the solar panels.
Other Liens
A PACE loan isn’t the only type of loan that results in a lien. The solar manufacturer may also put a lien on the home if the homeowner didn’t pay for the system upfront.
This type of lien is a Uniform Commercial Code filing against the property to ensure ongoing payment of the loan. Sometimes the manufacturer will lift the lien temporarily during a home sale.
Fully Owned Solar System
In some cases, the homeowner has a fully owned solar system. This is the ideal situation if you’re looking at a home with a solar panel system. The price of the home is higher because of the system but you’ll save money down the road on utilities.
There are no strings attached when buying a home with a fully owned system.
A Leased Solar System
Are you looking at buying a house with leased solar panels? Make sure you understand all the terms of the lease. You’ll take over the lease when you buy the home so make sure you’re comfortable with it.
Buying a House With Solar Panels
Buying a house with solar panels is a great idea. It’s better for the environment and can save you money on utility bills.
Make sure you understand the terms of any deal the homeowner made when investing in the solar system. Chances are, if it’s the home of your dreams, you can make it work. You’ll feel better knowing you’re living in an energy-efficient home!
Looking for more articles like this? Keep reading our blog!
