Transitioning to solar energy is a big investment that comes with a number of benefits. But what happens if you decide to sell your home before your solar panel warranties expire? Will residential solar panels affect the desirability of your home?
These are big questions for any homeowner. Luckily, you have come to the right place if you are currently looking for answers. This post will discuss the crucial aspects of selling a home equipped with residential solar panels.
How Do Residential Solar Panels Affect Home Sales?
According to the study published by Lawrence Berkeley National Laboratory, it shows that homes with solar panels sell faster than the ones without solar systems. Also, another study from Cleantechnica demonstrates that homes with solar panels sell about 20% faster than the ones without solar systems.
There are lots of reasons for this, and the California Solar Mandate has certainly made solar-equipped homes more desirable. The key takeaway here is that residential solar panels will not, in most cases, make it difficult to find a buyer for your home.
Can Solar Panels Increase the Value of My Home?
Based on how you choose to install a solar system, you could benefit from the installation of residential solar panels during your home sales process. According to Zillow, which analyzed the homes sold throughout the nation, on average, the solar energy systems could raise the home value by about 4.1% across the United States, via comparing the homes with solar to the ones without solar. However, it depends on whether you purchased or leased the solar system.
The reason for the increase in home value is that the buyers see solar systems as upgrades, like a new kitchen or bath. However, unlike these living amenities, the government will offer tax credits to give you the money back for installing solar panels. Some states even provide the bonus incentives that do not calculate the value of solar panels into additional property taxes. Thus, installing solar will raise your home value, but you will not pay extra taxes for it.
What Should I Do With Solar Warranty When Selling My Home?
Before you purchase a solar system, be aware that not all installers offer the same warranty package. 25-year warranties on equipment, roofing, and installation are the industry gold standard and you shouldn’t settle for less. We also recommend ensuring that your solar panel warranties are transferable to the new homeowner before signing.
If you do sell your home before the warranties are up, follow these steps to ensure the transfer is smooth.
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Contact the solar manufacturer and installer so that they know your intentions before listing your home for sale. In general, the buyers not only would like to know about the solar warranty transfer but also want to confirm the related lease agreements could transfer with no hitch.
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Make sure the buyers know early that the transfer of solar warranty and lease agreements are contingent on the home sale so that no misunderstanding will occur during the process of negotiation.
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Sign a lease agreement as well as a solar warranty transfer form with the manufacturer who could run a different credit check on the next owner.
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Confirm with the provider of the solar system that the escrow has closed to get the transfer completed.
If you would like to learn more about how residential solar panels can affect the saleability of your home, download this FREE guide “Living with Solar” today! You can also contact us to speak with one of our Energy Coordinators today and get the answers you are looking for.
