Sun Depot

PROBLEMS WITH LEASING SOLAR PANELS

While leasing a solar panel system may seem like a great idea, it can create an awkward situation when you decide to sell your home. Breaking your lease with a solar panel company will usually result in you being charged the full bill for the 15 years of usage the homeowner agreed to. The only options you are left with are pay the rest of the bill off or transfer the lease to the buyer of your home.

Unfortunately most buyers are hesitant to take over a 15 year lease. Committing to a long-term agreement as well as worrying about the credit requirements of the solar company, most buyers can not go through with the sale. As the owner and a seller it is important to be aware of these potential issues before leasing or attempting to sell your home after signing a contract. An appraiser will NOT add any value to a property that has leased solar panels. Since the panels are not permanent to the structure appraisers can not increase the value.

REFINANCING

Since there are very little up front costs for leased solar panels, solar companies will place a lien against the homeowner’s property as a means of security. This lien poses a challenge when a homeowner wants to refinance their home. Most of these liens cannot be subordinated, which unfortunately makes refinancing almost impossible. If a homeowner chooses to refianance their home they will need to pay off the solar loan otherwise your chance for refinancing may not be possible.

While solar panels may not seem like a good fit for most, if a homeowner is planning on staying in their home for the long haul it may be a good idea to install solar panels. Either way, it is always best to look into any major decisions when it comes to your home.

The Chapman Lending Team at HomeBridge Financial is honored to help many veterans utilize their VA home loan benefit each and every year. We ARE NOT a call center. Our goal is to provide the best customer service in the industry along with the most competitive rates and fees.

How Solar Affects Buying, Selling and Refinancing a House | Homebridge Financial Services Check out our article "How Solar Affects Buying, Selling and Refinancing a House" by Chapman Lending Team and get more interesting and insightful blog posts from the team at Homebridge Financial Services