Thinking of Getting a Solar System for your Home? While cutting down solar costs seems quite attractive, read this before signing on the dotted line when it comes to leasing solar systems.
LEASING OF SOLAR PANELS
What you need to understand is that when you lease a solar system, it can create a liability or debt for you. This debt may need to be passed on to the next homeowner. This can become an obstacle for you when it’s time to sell your home. When you (the seller) wants to sell your home, you may have a disadvantage over other homes for sale in your neighborhood that don’t have solar or has a solar system that is paid off. Should you wish to sell your home prior to the term of the lease, you may be faced with the situation wherein the buyer may need convincing to take over your solar lease payments. The new buyer may be subject to the finance company’s credit terms and approval on top of being approved for a mortgage. So when buyers are comparing your home to other homes in your neighborhood for sale, your home may not be as desirable because their monthly payment will be higher than competing homes on the market. In certain situations you may need to consider paying off the lease yourself before putting your home on the market. Also, you should check with the finance company to see if there are any pre-payment penalty or transfer fees you may need to pay.
Another point to consider when leasing solar panels is that you may surrender many of the advantages that come with buying solar panels. Instead of enjoying solar tax credits and rebates, those benefits will go to the owner of the solar system instead of you. You may be missing out on these important advantages.
We have shared with you some of our thoughts on the matter. We strongly recommend that you do your research and ask the questions you need answered so that you can make an informed decision.