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Question About Solar Systems On NEW HOME.

By
Real Estate Broker/Owner with Paradyme Realty 01914036

So here is a question I am posing to people out there with more information than me on the Solar System Topic and it's Legality.

Here is my scenario: I have some clients purchasing a NEW HOME in Southern California from Lennar. Lennar has beautiful homes, but this latest product they are including in their standard base price cannot be removed because it is standard. Lennar basically says take it or leave it.

They are offering a Solar System with this new home. Problem is they are over charging $2.50+ Watt/AC to purchase the unit out completely than market value. The other option is that you keep it on their home for 20+ years and they ONLY get a 25% discount on their Edison Bill. That is it, no rebates or tax credits, nor credits toward their energy bill to Edison. Lennar keeps it all.

They are being forced to purchase this system with the home because it is "standard." The home isn't even completed yet, nor the system put on.

My clients truly like this home and do not want to jeopardize getting it, but this "included upgrade" really gets to them. It cannot be removed and since the price is so overpriced on Market Value they will have trouble purchasing it and still maintaining appraisal price for their loan.

They claim we cannot remove the system from the purchase contract.

Does anybody know of any options or ways around this? Or will they just have to grin and bear it?

Simone Bercu
Metro Referral - Palm Beach Gardens, FL
Not state specific Real Estate - GRI, e-PRO, AB

Erick, I am in the process of figuring out how good a deal is having the solar system on the house  I live in and will post that info in my blog.

Your client's choices do not sound good to me.  I would not like a 20 year commitment attached to the house, and I do not know that 25% is a good deal.  I would not like overpaying for the system or being forced to buy it as a "standard".  I would look for another house, but that is my opinion only. 

May 20, 2013 07:00 AM
Erick Kuvshinikov
Paradyme Realty - Temecula, CA
Hang Your Hat Here With Erick Kuvshinikov

Thank you Simone. I agree that the "force" purchase issue is not ideal. Unfortunately it is the situation we are presented with. My clients LOVE the home and that is the problem that the builder knows they can get New Home buyers. The homes are beautiful and exactly what they want. Unfortunately they tie the Solar System to that purchase.

Ultimately they will grin and bear it, because they think the house is worth it. But it's NOT ideal. I've dealt with Solar Contracts before and this is the most outlandish one I've seen.

In the end they still will be saving money, BUT it won't be what they could save if they put it on themselves. And in addition, no one likes to be told they have to include something they don't want on a new home purchase.

May 20, 2013 07:12 AM
John Pusa
Glendale, CA

Erick - Thank you for the very good information about question about solar systems on new home.

May 20, 2013 09:16 AM