While the benefits are numerous, there are also some considerations to take into account when it comes to purchasing a home with solar panels as well as when applying for a fixed or variable rate mortgage on a solar-powered property. Here are some things to know before you buy:
- Appraisal
Since solar technology is still developing, and is relatively new, it
may be more difficult to get an appraisal on the home. In areas where
solar panels are more common, appraisers will be able to be more
accurate about the home’s value. However, if you are buying a home in an
area with less solar energy, there’s a risk that the home could be
over, or under, valued. This can work out in your favour, but it’s worth
trying to find an appraiser who is knowledgeable about solar energy to
avoid the risk of the home being overvalued.
- Owned or Leased?
The most important thing to know when buying a property with solar
panels is whether the system is homeowner owned, or leased from a solar
company.
If the panels are homeowner owned, it’s a big plus. Homeowner-owned solar panels increase the value of the home by a substantial amount. Leased solar panels, however, require little to no money upfront so don’t do as much for the value of the home.
Many home buyers are put off by leased solar panels as they don’t increase the value of the home and may seem like an additional complication. However, whether or not the home’s value is increased, leased solar panels will still provide positive impacts on the environment and save you money on electricity.
- Energy Consumption
If you are unsure whether solar energy is right for you and your
lifestyle, it’s helpful to speak to the sellers of the home. By
comparing their lifestyle and energy consumption to yours, you can get a
better idea about whether or not solar energy would be right for you
and your family. You may even ask to see their utility bills to get an
idea of how much you would be saving.
source: northwoodmortgage.com
