Buying a new home is a big step. If you are looking to buy an older home with the goal of renovating, you may get a great deal. You are almost guaranteed to increase your investment.
Adding solar panels is a great way to save on energy bills. This is very true in older homes that may be difficult and expensive to heat in the winter. But what about the cost?
While installing solar panels will cut energy costs, it will add a lot to the overall cost of the home. Some people may have more difficulty getting a mortgage.
Installing Solar Panels
Most of us are aware of the substantial cost of installing solar panels. If you are relying on a loan to buy them, it may be difficult on top of a mortgage. Many people choose to lease the solar panels directly from the solar company.
Leasing your solar panels may be easier, and the solar company often offers financing and other incentives. This might be a better option for those who are already negotiating a mortgage.
However, buying the solar energy system can also have its advantages, and often is the smarter choice. Both options can seem appealing, so how do you choose?
Buying or Leasing
When you buy the solar panels, you own the system outright, but if you lease solar panels or sign a power purchase agreement, a third party will actually own them.
Buying the system is often the better option. You will save more money this way, even though it may seem like it is less expensive initially. Once you own the system, you avoid rising costs of energy increases.
Leasing can sound like a good idea, and there are advantages. You can get the solar system installed for little or no money down. Plus, as long as you are on a lease, the solar company is responsible for the maintenance of the system.
However, if you can buy it outright, it may not only cost less, but your savings on your energy bill will be noticeable immediately. A leased system may have you paying for many years before they are paid off, where owning the system will pay for itself within a few years.
When you lease the solar panels, the manufacturer may place a lien on your property to make sure you keep paying for them. If you ever need to refinance or sell the property, it can be difficult with a lien.
Plus, if you sell the home with leased solar panels, they technically are not included with the sale. They may come out and remove the entire system, as they own the panels.
Potential buyers will most likely be leery about buying your home with solar panels you don’t own. Likewise, if you are looking at buying a home that already has solar panels, make sure you understand if they are leased, purchased through home equity, loan, or a solar loan.
A leasing company may also install more panels than you need, so you may not have any control over your roof, at all. Seeing your home with solar panels on lease means you may have to buy out the lease completely.
That is a decision you need to make based on your own circumstances. You should always ask the professionals for advice and get help deciding what the best move is for you.
Contact Live Smart Construction today for an estimate or consultation and start saving with solar.