Examining a Home Equipped with Solar Panels? Here Are Additional Verifications to Consider
Buying a House with Solar Panels: Key Considerations
When considering the purchase of a property equipped with solar panels, potential buyers should be aware of several factors that can impact the financial and practical aspects of the transaction.
Ownership Type
One of the primary considerations is the type of ownership for the solar panels. Owned panels usually add value to the property and reduce electricity costs without ongoing obligations. Leased panels can complicate the sale because you may inherit the lease payments and obligations, and some lenders may not approve mortgages on homes with leased solar systems.
Financial Implications
Assessing the financial implications is crucial. Lease payments may include escalating fees that outpace electricity savings, and tax credits and incentives might affect the net financial benefit. It's essential to understand the potential savings and costs associated with the solar panels.
Roof and Installation Suitability
The roof's space, orientation, and minimal shading are vital factors that influence solar efficiency and savings. South-facing roofs are ideal in the Northern Hemisphere, and the local climate and sunlight availability also impact the system's effectiveness.
System Maintenance and Warranties
Leased panels usually come with maintenance handled by the leasing company, while owned panels may require owner responsibility. Verify the condition, age, and warranty status of the installed panels and equipment.
Home Value Considerations
Solar panels generally increase property value and appeal to eco-conscious buyers. Existing solar systems have been shown to increase home sale prices on average by about 4.1%.
Transferability and Mortgage Impact
Confirm how the solar system lease or financing transfers with the home sale and whether the mortgage lender approves. Some government-backed loans may have restrictions on leased systems, which can complicate financing.
Other Factors
When viewing a house, check for dirt, debris, and damage on solar panels, wiring connections, shading, and check if the panels are leased or owned. It's also important to check documentation for the panels, including the Feed-in Tariffs and the microgeneration certification scheme (MCS) certificate.
Future energy bills should be factored into an offer on a house with solar panels, as energy costs may continue to rise.
Training and Support
For those interested in renewable technologies, GTEC delivers courses for heat pumps, solar, battery storage, electric vehicle charging, and supports energy efficiency measures. Griff Thomas, the MD for renewables training provider GTEC, has overseen the development of most national renewable technology standards.
Lifespan and Replacement
Solar panels last for at least 20 years, but inverters typically last between 10 and 15 years. Adding a solar battery to an existing system can cost around £2,500.
In summary, carefully review the solar system’s ownership, lease terms, financial savings potential, roof suitability, maintenance obligations, and impact on home value and mortgage options before purchasing a house with solar panels.
- Understanding the type of ownership for the solar panels is crucial, as owned panels can add value to the property and reduce electricity costs, whereas leased panels may complicate the sale.
- The financial implications of solar panels, including lease payments, potential savings, costs, tax credits, and incentives, should be assessed before making a purchase.
- The roof's space, orientation, and minimal shading are critical factors that influence solar efficiency and savings, making south-facing roofs ideal in the Northern Hemisphere.
- Verifying the condition, age, and warranty status of the installed solar panels and equipment is important when considering a house with solar panels.
- Solar panels generally increase property value and appeal to eco-conscious buyers, with existing solar systems having been shown to increase home sale prices by about 4.1% on average.
- Confirming how the solar system lease or financing transfers with the home sale and checking if the mortgage lender approves is essential to avoid complications during the transaction.
- When viewing a house with solar panels, it is important to check for dirt, debris, and damage on solar panels, wiring connections, shading, and to ascertain whether the panels are leased or owned.
- Proper documentation for the panels, including Feed-in Tariffs and the microgeneration certification scheme (MCS) certificate, should also be checked.
- Future energy bills should be factored into the offer on a house with solar panels, as energy costs may continue to rise.
- For those interested in renewable technologies, GTEC offers courses on various renewable technologies, such as heat pumps, solar, battery storage, electric vehicle charging, and supporting energy efficiency measures.
