Impact of Solar Leases on Resale Value
- Lease Complications: A solar lease can complicate the home sale process because the leasing company places a lien on the property, which is recorded in the title. This can deter some potential buyers, especially those who are not interested in assuming a lease or dealing with its associated costs and complexities.
- Buyer and Seller Options: When selling a home with a leased solar system, the seller has a few options:
- Pay Off the Lease: The seller can buy out the lease to own the system, potentially increasing the home’s value.
- Transfer the Lease: The lease can be transferred to the buyer, but this requires a credit check and may not appeal to all buyers.
- Value Perception: While solar panels generally increase a home’s value, leased systems might not have the same impact as purchased systems. Buyers often prefer owning their solar systems outright, as it simplifies the transaction and provides full control over the equipment.
- Market Perception: The presence of solar panels can attract environmentally-conscious buyers who value energy efficiency. However, the specific terms of a lease and any associated liabilities may affect how much of a premium buyers are willing to pay.
Comparison to Owned Solar Systems
- Owned Systems: Generally increase home resale value more significantly than leased systems, with studies showing an average increase of about 4.1% in resale price.
- Leased Systems: While still seen as beneficial, they can introduce complications that might not result in the same level of value addition as an owned system.
Overall, solar leases can make selling a home more complex due to the potential for lease liens and the necessity for buyers to assume or negotiate around these leases. However, the environmental and cost-saving aspects of solar energy continue to appeal to buyers, even with a lease.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-solar-leases-affect-the-resale-value-of-a-home/
