Going Green in 85024>Question Details

Lrccat07, Home Owner in 85024

Will leasing solar panels from solar city increase the value of our house? and how difficult will the house be to sell with the cost of the solar?

Asked by Lrccat07, 85024 Sat Sep 24, 2011

We are leasing a $26,000 solar system, and in order to qualify to take over the lease the buyer must have a 700 credit score or above. So if we ever sell the house we would have to wrap the remainder of the lease of the solar system into the cost of the house. Depending on how long we are in the house that would bump the price of the house up significantly.

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The simple answer is no. Since solar leases only allow you to lease the panels, they are not considered a fixture of the property. However, Phoenix area statistics for solar resale homes show that homes with solar leases actually sell 25% faster than the market average in third quarter of 2014. Most solar companies, including SolarCity, have a multitude of options for buyers to assume the solar lease with little to no hassle...typically if a buyer can qualify for a mortgage, they can qualify for a lease, especially considering that 75% of all solar home sales in the Phoenix area involve mortgage financing. With 100 or so solar home sales a month on average, lease transfers are not an issue. You can find the whole range of information and solar statistics for the Phoenix area at http://www.solarhomebroker.com/
0 votes Thank Flag Link Wed Nov 12, 2014
Depends on the market rates...Where do you live? Provide me with the address and I can provide you with comparable market analysis.
0 votes Thank Flag Link Mon Aug 26, 2013
Sorry to say no, but that's reality. Today, any potential homebuyer can buy a brand new, state of the art solar system for less than 1/2 of what you're remaining lease payments probably are and keep the 30% federal tax credits worth thousands of dollars as well as any other financial incentive and own the solar system for a much better return on investment than any lease or PPA. So why would a homebuyer want to take over your lease payments on used equipment. Any real estate professional will tell you that you should never lease a solar system if you plan to move any time during the term of your lease contract. With $0 down, no collateral needed, solar loans available for some time now, you would be in much better shape financially, if you would had purchased instead of leased.
0 votes Thank Flag Link Sun Jul 14, 2013
So you say never lease . ever .. and that is why people cant believe you . Their is always circumstance and variable . that is a mathematical certainty . Never say never Ray . The company i work for transfers systems on a daily bases with minimal issues . Yes their are issues , but not what anti solar lobbyists are stating.
Flag Fri Aug 8, 2014
I disagree with most and will tell you a buy might love your solar but seldom is there a buyer that wants to pay more for your home than the neighbors without solar. Let's face it if they want it done later can't they just lease or buy it later.
Best of luck,
Web Reference: http://bradbergamini.com
0 votes Thank Flag Link Mon Sep 26, 2011
Some solar companies move it for you too your new home?

If it saves you money and you recieve a credit from APS then it may be a value. That would be an asset to share with buyers and give them option to keep. When power prices shoot through the roof buyers would be all over it.

It is all about what type of panels you have too. I know a solar company that leases and the clients still have a credit after lease payment.

Best of luck! Solar is the direction our community needs to move. If you would like other resources feel free to contact me direct.
0 votes Thank Flag Link Sun Sep 25, 2011
What a waste. With that lease you’re saving about $45 per month. Poor investment. I was going to purchase solar for my home but cost $36K and saving about $70 per month. I told the salesperson I purchased a built 2008 3 bed 2 bath home renting it for $950. Netting $750. Do the math. “F” solar panels. Waste of money.

Investor Mike
Gilbert, AZ
0 votes Thank Flag Link Sat Sep 24, 2011
Caution! Selling your home and expecting someone to take over a lease of that magnitude is going to be very limiting. We are sometimes challenged with leased security systems and water softeners to get the two parties on the same page. It is not uncommon for the seller to buy out the lease to sell the house.

I completely understand if you make the personal choice to install solar, but at his time they are not very common in the resale market. It will likely be years before much value will be actually derived from the system. Many buyers may think its nice and feel good but I doubt many are looking specifically for it at this time.

My advice, find a home you really think you want to live in for years and then install the system of choice for your benefit.

Glad to answer your question.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Sat Sep 24, 2011
If a buyer is looking for a home with solar panels on the home it will help your marketing but if you think buy having them and with the solar panels leased it might not increase your home value. If the buyer has to have a credit score of 700+ to take over the lease terms that could be and issue for some buyers in this market.
0 votes Thank Flag Link Sat Sep 24, 2011
SolarCity has also said that if the buyer qualifies for a government or conventional mortgage that they will often transfer the lease to the buyer without issue.
Flag Wed Nov 12, 2014
It's a 650 requirement for my company
Flag Fri Oct 31, 2014
This question is difficult. Green is not always economical. If your buyer is green friendly, he may be willing to bite.
0 votes Thank Flag Link Sat Sep 24, 2011
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