Buying a home in the Coachella Valley with a solar system on the roof is a great investment, but understanding exactly how the solar system affects the overall value of your new home is important. Luckily, Renova Energy has you covered.
Leasing a solar system is the best option for many homeowners, especially since the fixed rate you pay per month generally falls well below the normal cost of electricity without solar. But beware of leases that include escalators. Escalators spell out the rate at which the payment on your lease will increase over time. When you become the new owner of a home with a leased solar system on the roof, make sure you review the lease agreement before purchasing the home, or else you could be on the hook for rising rates. Homes with a Renova Energy system are generally safe from these sneaky escalator fees. To learn more about escalators, check out our blog, What is An Escalator in a Solar Lease or Power Purchase Agreement (PPA)?
Unlike a lease, if the previous homeowner installed their solar system through a loan, the loan will always be their responsibility, even if the property is sold to a new owner. This means if you’re considering buying a home with solar panels financed through a loan, you don’t need to worry about the potential financial impacts after you’ve purchased the home. However, this could mean that the asking price for the home might be higher to factor in the added value of the solar system.
If the previous homeowner purchased their solar system outright, you’re in the best situation. Because the previous owner purchased the panels up front, the system is entirely owned by the property owner. What will likely happen is similar to purchasing a home with a loan, and you’ll pay a little more for the home.
Still have more questions about buying a home with solar? Reach out to one of our certified energy consultants at Renova Energy today!