Suppose you’ve invested in a solar system and are unsure whether warranties will affect your lease transferability and home sale. In that case, this article provides the answers you need, including the value that solar panels add to your property’s market value.
Are Solar Panel Warranties Transferable?
In a nutshell: Solar panel warranties are transferable from a home seller to a buyer. Nonetheless, a few companies still restrict warranties to the original property owners. It’s critical to ask your solar company for clarification before entering into a contract, as that might affect your home selling process.
Solar panel warranty forms a critical part of a sales contract, guaranteeing that your solar energy system is free from material defects and quality issues. It’s a legally binding contract, and it’s essential to follow specific steps to ensure that the transfer of ownership runs smoothly for the buyer, solar company, and yourself.
Contact Your Solar Company
The first step is to speak to your solar installer and inform them of your intentions to sell your solar-powered home. It’s also critical to tell the buyer that they are getting into a deal involving PV warranties or lease to ensure they are in the loop during the negotiation process.
Sign the Warranty Contract
You also need to sign the warranty papers with your solar manufacturer to confirm that you’re transferring ownership. The solar company will then run a credit check on the home buyer. Once that’s done, you can close the escrow agreement to finalize the warranty transfer.
What If the New Owner Doesn’t Want the Solar Panel Warranty or Lease?
If the home buyer does not want to buy a home with an under-lease solar system, you will need to repay the remaining lease period. However, you can recoup the money by adding the costs to the home’s sale price. Alternatively, you can transfer the system to your new home, albeit it may cost you significantly.
What Value Does a Solar System Add to a Home?
California has experienced wildfires and heat waves recently, and legislation is underway to ensure real estate developers install solar panels as a means of green living.
A report posted on CNBC indicated that PV panel installation not only reduces our impact on the environment and increases a home market value up to 4.1% more compared to properties without solar power supply. That translates to an additional $ 9,274 for the median home value in the United States.
Considering the high volatility in the US housing market, these averages are bound to fluctuate wildly. It would be best to partner with a professional solar company, like Solar Optimum, for reliable home valuation. An advantage of partnering with professional PV panel manufacturers is that they provide ongoing technical support and system maintenance to ensure your solar system function optimally to retain your property’s value.
How a Solar Lease Affects Your Home Sale
As a seller of a solar-powered home, it’s understandable to be worried about how the leased PV system will affect your home sale. Will it scare away potential buyers due to the increased property costs? On the contrary, there’s an increasing demand for homes with solar panels. 77% of home sales involve properties with leased PV systems, and the deals went smoothly despite the increased property value. Only 20% of in-market home hunters were scared by solar panel leases.
You can increase your chances of selling your solar-powered home by understanding the warranty or lease transfer options and explaining the lease agreement to the buyer clearly and explicitly. It requires a proper understanding of the escrow agreement, and if you’re doubtful of your knowledge in that area, it will help to involve a certified solar installer. By now, you must be confident that you can transfer your solar panel warranties to a new homeowner. Now you can install solar panels, knowing that you’ll increase your home’s resale value while attracting many potential buyers.
Don’t Overlook Your Solar Warranties
The warranty package is one of the most important factors when shopping for solar panels. Don’t overlook the importance of your warranties and always make sure they are transferable to a new homeowner. Contact Solar Optimum today to learn more about our 25-year warranties.
