Solar panels are a hot topic in sunny states like Arizona. With over 330 days of sunshine, why not?! So it goes without saying (almost) that solar panels will lower energy bills. But not everyone wants to spend thousands of dollars for them. Owning them is ideal as owned solar panels have value, see my other blog on that topic. But what if you could finance them, get the rebates and still own the panels? Sounds like a good scenario.
Mention solar panels and ears purk up and attention is gained. Solar panels have gotten a lot of press lately, both good and bad. The bad part is that leased panels have no value and homeowners who are leasing them were probably never aware of this fact. Sad but true, Fannie Mae guidelines in the March, 2015 edition clearly state that they are not to be given value in an appraisal. But what if you could finance them (sorta like leasing them) and get the rebates and OWN them?!
That's what a lot of solar companies are figuring out. But the homeowner is still left in the dark (pun intended) on the topic. Mostly because they rely on the solar companies for the information and unless the information is clearly expressed, do homeowners fully understand the options.
Check out a blog I wrote on this topic a while back.
You see a solar company may or may not even be aware of the fact that owned panels have value and leased panels do not. Nor do they understand or comprehend that leased panels may prohibit the sale of a home .
Just last week I was showing a gorgeous home in North Scottsdale. The home had 17 years remaining on a solar lease. The payment was $217.00 per month and the electric bill was $40. Pretty good for this 2523 sq ft home with 12 ft ceilings. But the buyer did not want to inherit a payment he didn't create. The stigma for him is that he doesn't want to be bound to that payment, even though the math made sense. Argh!
You see, in order for a solar company to know how many panels to recommend, they need to know your energy usage (utility bills), your habits, how much you want to save, and they might ask you how long do you intend to stay in your home.
At the end of the day, homeowners need to read every document and ask the following questions:
How much is the downpayment for financed solar panels?
How much is the monthly payment?
How much of my energy bill am I eliminating?
Will the payment remain the same for the entire purchase period?
Who receives the Federal, State and local rebates and incentives? (If the solar company receives those rebates, you may not own the panels.)
How long does the inverter last? (Typically less than 12 years.)
How much does it currently cost to replace an inverter?
Are the panels transferrable to my next home if I decide to sell and move?
Is the roof warranted against leaks?
How long is the warranty?
Does the solar company offer inspection services should I sell my home?
Does the solar company provide any maintenance for the array? Is there an extra cost?
These are just a few of the questions you'll want to consider if you are thinking of adding financed solar panels to your roof.
Solar panels are a great way to reduce energy and reduce your carbon footprint as well. But if you're seriouse about energy efficiency, start with an energy audit. An energy audit will explain all of the systems and components, how efficient the systems are operating, items to replace, and the return on investment for making any energy efficient improvements. There are also every day habits you can change to lower your energy bills as well.
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