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Solar Panel Savvy

By
Real Estate Agent with Coldwell Banker Residential Brokerage

 

Solar Panels are a way to "go green" and save money on electric bills

"Going green" is becoming a lifestyle choice to save the environment and money. One appealing way to be environmentally responsible is to have residential solar panels installed. They use a renewable energy source, the sun,  which will be around for years to come. It is also a quiet energy source, which requires no moving parts. However, energy will only be produced during the daytime when the sun is available. An advantage of solar panels are their ability to reduce electric bills and provide tax incentives. 

Solar panels are photovoltaic (PV) cells that are essentially special batteries. The panels harness sunlight, transform it into energy, send that energy to an inverter, which then converts it into electricity to power the home. In addition to the installation of the panels, additional wiring is required. 

Many of the growing number of companies offer solar panels at no upfront cost. The panels are leased, which is a popular way to defray the up-front costs.  It can be hard to resist because it sounds like a no-lose proposition, with the appeal of “going green” and saving money on electricity bills. Other options are to buy or finance the panels.

If you are considering having solar panels installed, make sure you hire a professional who offers a strong warranty that covers the inverter and panels. Use panels made by a U.S.-based manufacturer so the warranty will cover you if the manufacturer goes out of business. Hire a licensed and bonded professional who has had no major complaints filed with the Better Business Bureau and who can supply references. Lastly, make sure the professional you hire has expertise in your type of roof. 

 What happens if a few years later you decide to sell your house?  Some buyers hesitate when they learn they’ll need to qualify on credit to take over your existing solar lease payments for the next 10 to 15 years. The solar company may require they approve the new owner, complete with credit approval and a minimum credit score. There is a possibility the added lease payment may disqualify the buyer from obtaining their mortgage. Other buyers may say they like your house but won’t sign a contract unless you, the seller, buys out the remaining lease payments. They’re concerned the solar equipment will become obsolete or won’t save as much on electricity bills as advertised. Issues like these are increasingly popping up around the country. Sales fall apart when the parties can’t agree on how to handle the substantial payments owed on long-term leases or because buyers thought the leases were bad deals, or didn’t result in promised savings.

Nationwide, residential solar installations are becoming increasingly popular. SolarPowerRocks.com has ranked Maryland #7 in their 2015 State Solar Power Rankings. They estimate the average Maryland homeowner who uses solar power saves an average of $109 / year on their electric bill, and $5,024 over the life of their 20-year lease. 

Figuring out the best way to go solar in Maryland can be a little intimidating. From loans and leases to power-purchase agreements, there are a lot of options out there.  You will also be required to obtain permits before installation can begin. Be sure to check with your local government to learn what permits are required and the cost to obtain those permits. Also inquire about any required inspections after installation is complete. You don't want to be fined for not following the local regulations. While it may likely take years to recoup the cost of a solar home system, the effect on electrical and heating bills will most likely be realized quickly and will be appreciated. Before you commit, interview more than one professional installer, and make sure you have a complete understanding of your options.You want to make the decision that works best for you and your home.

Posted by

Melissa Spittel, Carroll County Maryland real estate agent 

 

 

Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

It is inevitable that all homes should have solar assistance one day

Mar 06, 2016 10:37 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I agree with Richie....I would love to look into them for my own home.

Mar 06, 2016 10:49 PM
Melissa Spittel
Coldwell Banker Residential Brokerage - Westminster, MD
"Achieving Results Together "

Richie Alan Naggar Kristin Johnston, Waukesha County Realtor 414-254-6647 Thanks for reading and commenting! I serve a rural area where solar panels are not yet popular, although there a few homes that have had them installed. My area is a long way away from adopting the technology, but I do feel it is most likely the way of the future.

Mar 07, 2016 06:23 AM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY
Certified Mobile Notary Signing Agent - Smith Mountain Lake, VA
Highest Ranked Certified Mobile Notary in Virginia

Living at Smith Mountain Lake, we have lots of sunshine and reflected ambient illumination off the water's surface Melissa E. Spittel, Realtor .   We are also "rural" and solar panels haven't caught on yet though I know of a few homes here that have them.   Though many companies DO offer them with no upfront costs, the overall price is still prohibitive.   When the prices come down and the ROI is greater, I think they will catch on.   You wrote an awesome post with lots of great information !

Mar 14, 2016 07:50 AM
Melissa Spittel

Thank you Deanna Early 

Mar 14, 2016 10:34 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

It is something that we are considering for our aging in place next house.  I would totally love to be able to be completely off the grid. We're about 5 to 6 years away.  I'm looking at land now to find the right "spot" for our last new house.

Mar 14, 2016 11:42 AM
Melissa Spittel

Sounds like you have a great plan Tammy Lankford!

Mar 14, 2016 12:22 PM