Although solar is an increasingly popular way to be environmentally friendly and save money on power bills, it is also becoming a hurdle to selling a home. The issue lies with the fact that many homeowners lease solar panels. When it comes time to sell a home, it is not uncommon for buyers to balk at the idea of taking over a lease, especially due to the 15 to 17 year length and the fairly rigorous credit qualifications needed. Furthermore, some potential buyers are concerned that the costly equipment may become obsolete in the next few years or that expected savings won’t match reality.
This can leave sellers in the position of either waiting to find a buyer that is willing to take over the lease or having to finish paying for solar panels, which can run upwards of $20,000. Although Clean Power Finances has stated that they haven’t seen many cases where home buyers don’t want solar, real estate agents in California have said that disputes related to solar panel leases are becoming an increasing issue during home sales.
In spite of potential issues with home sales, solar installations are increasingly popular. According to the Solar Energy Industries Association, since 2012, there has been a 50 percent increase in installations. Experts suggest that people either purchase solar panels outright or consider the implications of a lease if they decide to sell their home. Finding out the details of a transfer in advance could help people avoid a home sale being derailed.