Making an investment in a home is a big deal. Even so, sometimes the home we buy is not the house we remain in forever. New jobs, growing families, and sometimes just falling out of love with a house makes us sell our home. You may even be living in a house right now that you know you’ll be selling down the road. So if you’re thinking of making an investment in your house by installing solar panels, you may ask, “Will solar panels make it harder to sell my home?” The good news is, whether you buy your solar panels or obtain them through a Power Purchase Agreement (PPA), you can still sell your home if you need to. It’s not as hard as you’d think, although it’s always good to be prepared. Here’s what you need to know about selling your home after installing solar panels.
Do you have a PPA?
If you have a (PPA), you have two options when you sell your home:
Transfer the agreement to the new owner: If the new homeowner is interested in switching to solar, simply transfer the PPA over to them. They will have to meet the solar company’s criteria, but that’s usually not an issue. If they can be approved for a mortgage, new homeowners should easily qualify for a solar PPA.
Buy out your PPA: You may hit a snag if the new homeowner doesn’t want the PPA transferred to them. New homeowners who are unfamiliar with how a solar transfer works may also be skittish to go through the process. Even if you make a point to stress how much money you saved each month, it happens. In that case, you can buy out your solar PPA. Be sure to work with a knowledgeable realtor as well who can highlight the pros of having solar panels.
While it sounds complicated, transferring your PPA when you selling your home is pretty simple. With the right buyer, it’s actually easy. But we’ll be honest; it might take a little more effort than if you owned your solar panels.
To learn more, watch this helpful video we recorded with one of our local real estate agents in Angels Camp, CA.
Do you own your solar panels?
If you own your solar panels, either by paying cash or purchasing them with a loan, selling your home is more straightforward. In fact, when you own solar panels, they add value to your home, so you can sell it for more than you otherwise would. And it is often attractive to home buyers, so definitely talk up your solar energy system when you sell! Make a point to share how much money you saved with solar power — potential buyers will definitely be interested in that perk.
What if you’re still paying off your solar loan? You can still sell your home! Your solar loan isn’t tied to your mortgage, so you can either pay off your solar loan with the additional proceeds you get from your selling your home, or work out an agreement with the new owners for them to purchase your panels. However, unlike a PPA, a solar loan can’t be transferred directly to a new owner.
Purchasing solar panels will not make it harder to sell your home. In fact, they may be a great selling point! If you have questions about selling your home with a solar energy system, Aurora Energy has got your back. We can help you come up with a game plan, even before you buy or lease your panels. Contact us today.