Ignite FB Tracking PixelDoes Solar Power Add Value To A Home? - Susanne Rae Lopez, Esq
Does Solar Power Add Value To A Home?

by Susanne Rae Lopez, Esq 02/17/2019

One of the best things that you can add to your home is a solar power system. These can be costly but they save you a lot in the long term on utility costs. While government programs have scaled back for these energy saving improvements over the years, there’s still many benefits to them. You can even get a loan specifically for installing solar power to your home.


Before you take the leap, you’ll want to know for sure if solar will really add value to your home. Of course, you want a return on your investment. 


The good news is that there’s no doubt about it that installing solar panels does definitely add value to your home. There’s one caveat to the value: You should own your   solar power system as opposed to leasing it through a solar company or a power purchase agreement. 


Homes that have solar panels sell for more money simply because they offer a definite return benefit to the future owner. 


Does A Leased Solar System Offer The Same Benefits?


Owning your solar system will save you more money in the long run than leasing your system. When you own a solar power system, the FHA requires that the total value of your solar system be added to the total value of your home when you go to sell it. If you lease the panels, this value cannot be added to the home during an assessment.   


If you have financed the system, the rules may be a bit more lenient. While you technically don’t own the system, you are paying towards owning the system yourself. Each lender will have their own standards for this, so check with them for specifics, as your home must meet certain standards and eligibility requirements. 


Securing A Mortgage With A Leased Solar System


If someone is looking to secure a mortgage with a leased or currently unowned solar energy system, there are a few hurdles that you might face through the process. These problems include:


Solar lease payments must be included in the buyer’s debt-to-income ratio. 

The panel owners must have a third-party insurance to cover damage to the property that’s being mortgaged in the event of malfunction or faulty installation of the panels.         


Solar Panels Are An Overall Great Investment


It’s really hard to go wrong if you purchase or finance your solar panel system. As long as you own the system, value will be added to your home. You’ll also save on your own utility bills. Your home will undoubtedly become more attractive to buyers if you decide to sell your home in the future.

About the Author

Author
Susanne Rae Lopez, Esq

I am proud to be celebrating 24 years with Tarbell Realtors! I am an attorney as well as a real estate agent. I bring my legal background to the table every day in my professional capacity representing buyers and sellers. As a listing agent, my extensive marketing plan gives a homeowner the opportunity to get the maximum value for his/her property. I utilize all of my marketing capabilities, derived from my 24 years with Tarbell Realtors. I know what it takes to get your house sold. And representing buyers and sellers in the purchase and sale of their real estate is my passion. For buyers, I help negotiate the best possible deal and search until I find the perfect property. Nothing satisfies me more than seeing the smiles that come with a successful sale or the purchase of a lifetime. Once a home is in escrow, whether I am representing the buyer or the seller, my expert skills at facilitating the transaction is as valuable as the marketing. Selling and buying a home is a huge transaction. Making sure you have an agent that can represent you professionally and exceptionally is a huge decision. Thank you for choosing me as your Rancho Cucamonga area real estate professional. Do you have any specific questions about my real estate services? I can help you buy or sell your home with a comprehensive strategy designed for you. Susanne also provides services for Deer Creek, CA. To learn more, please contact Susanne.