Janet Cramb & Company/LAER Realty Partners



Posted by Janet Cramb on 2/10/2021

One of the best things that you can add to your home is a solar power system. These can be costly but they save you a lot in the long term on utility costs. While government programs have scaled back for these energy saving improvements over the years, thereís still many benefits to them. You can even get a loan specifically for installing solar power to your home.


Before you take the leap, youíll want to know for sure if solar will really add value to your home. Of course, you want a return on your investment. 


The good news is that thereís no doubt about it that installing solar panels does definitely add value to your home. Thereís one caveat to the value: You should own your   solar power system as opposed to leasing it through a solar company or a power purchase agreement. 


Homes that have solar panels sell for more money simply because they offer a definite return benefit to the future owner. 


Does A Leased Solar System Offer The Same Benefits?


Owning your solar system will save you more money in the long run than leasing your system. When you own a solar power system, the FHA requires that the total value of your solar system be added to the total value of your home when you go to sell it. If you lease the panels, this value cannot be added to the home during an assessment.   


If you have financed the system, the rules may be a bit more lenient. While you technically donít own the system, you are paying towards owning the system yourself. Each lender will have their own standards for this, so check with them for specifics, as your home must meet certain standards and eligibility requirements. 


Securing A Mortgage With A Leased Solar System


If someone is looking to secure a mortgage with a leased or currently unowned solar energy system, there are a few hurdles that you might face through the process. These problems include:


Solar lease payments must be included in the buyerís debt-to-income ratio. 

The panel owners must have a third-party insurance to cover damage to the property thatís being mortgaged in the event of malfunction or faulty installation of the panels.         


Solar Panels Are An Overall Great Investment


Itís really hard to go wrong if you purchase or finance your solar panel system. As long as you own the system, value will be added to your home. Youíll also save on your own utility bills. Your home will undoubtedly become more attractive to buyers if you decide to sell your home in the future.




Categories: Uncategorized  


Posted by Janet Cramb on 12/21/2016

Thanks to federal tax incentives and a growing concern for the environment, many Americans are installing rooftop solar panels to cover or offset the cost of their utilities. In the last ten years the solar industry has grown by an unprecedented 1,600 percent and it shows not signs of slowing. As solar becomes more affordable, however, debates have opened up around the use of solar power and its effect on older ways of producing electricity (like coal-fired and nuclear power plants). Solar power is a complicated process that is part of an even more complicated industry. If you're thinking about making the switch, consider this your crash course in rooftop solar power.

I'm interested in solar. Where do I start?

Before you call a local solar provider and start getting sales pitches it's useful to know some background information on solar in your area. Do some research on your home state to see if your local government has incentivized solar in any way. Some states have provided funding to banks to offer loans for home solar systems. You should also consider some details about your home, your current energy provider, and the amount of time you're going to spend in your home. If you plan on moving anytime soon, leased panels may not be something you want to put up on the roof. Some buyers will happily take over the lease; others won't be so sure or may see it as a headache. You'll also want to learn about net metering from your current electricity provider. The electricity market is now in flux due to the increase of solar. As solar makes electricity more accessible, it could make electricity costs go up from your local utilities company. Net metering is the way that power companies measure how much electricity your panels put into the grid during the daytime which will be discounted from your monthly utility bill. Finally, you'll want to consider how beneficial the panels would be to your bill. If your home doesn't receive a lot of sun or have enough viable roof space, solar panels might not be worth it. If you can buy the panels flat out, however, they'll likely save you a lot of money in the long run.

Buying, leasing, and financing your panels

Buying, leasing, and financing all have their advantages and disadvantages which you'll want to weigh before committing to one option. For example, even if you have the funds to buy outright you might prefer the leasing option for the maintenance and repairs guarantee. Maybe you want to buy or finance to take advantage of local and federal tax incentives. Another thing to consider is the changing technology itself. As solar power improves, so does the technology that makes it possible. If you're thinking of moving within the next few years it might be in your best interest to wait for the next generation of panels for your new home instead of buying panels that will be outdated in the home you're in.

Making the calls

Once you've decided you want to go ahead with solar panels on your home you have another round of research to do. Compare providers in your area. Get quotes and setup options to find one that you're happy with. Get a sample contract and read all of the fine print. Finally, check out the customer reviews to make sure you'll be happy with this provider--especially if you're leasing and will be dealing with them for the next 15-20 years.