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Monday, August 19, 2013

How Adding a Solar System Affects Resale
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Agoura Horse Property Inc, recently asked about 100 agents in the Conejo Valley "How does a solar system affect resale of a home?"  Of those that answered the question, most said that there was a "small advantage", and that the advantage increased to the extent that the seller owned the system outright rather than was making payments on a long term loan.  A handful of agents had experienced a transaction in which a leased solar system with a long term contract had a negative effect on the resale value.  

 
We love using the sun's energy to spare natural resources, and saving money in the long run on the cost of electricity is a good thing.  The results of our poll suggest that buying versus leasing the system may be best for resale.  When buying is not possible, and there is a likelihood that the home will be marketed for sale, then a solar lease contract should be certain to include a reasonable "buy-out" amount.  This amount could be factored into the purchase price of the property.  
 
Here's a compelling ad for solar:  http://www.youtube.com/watch?v=jabhqz30hhQ
 
We'd love to hear about your personal experience with solar?  Do you lease or own your solar?  Have you experienced either shopping for a home, or selling a home where a solar system feature had an effect on your sale transaction?
 
 
 
Posted at 4:23:29 PM
 
Comments: 1
 
Ray Boggs on Monday, September 02, 2013 at 1:48 PM

If you do install solar for the purpose of increasing you home's resale value, be sure to avoid a solar lease at all cost. A solar lease is one of the absolute worst ways to finance the rental of a solar system. First of all you have to forfeit the 30% federal tax credit which is worth about $10,000.00 on a typical 6 kW system. You'll also have to forfeit any cash rebate. The leasing companies will tell you that they will apply the tax credit and cash rebate to the system price so that you'll lower the acquisition cost but the leasing company's pricing is so over inflated that the tax credit and rebate as large as they are will hardly make a dent in their price. Instead of an expensive solar lease or PPA, consumers are now getting $0 down solar loans that require no equity, that offer tax deductible interest and allows you to keep the 30% federal tax credit and any other incentives and own your solar system for a much greater return on investment than any lease or PPA. And good luck ever selling your home with a lease attached to it. What homebuyer will want to assume your underwater solar lease on a used system, when they can buy and own a new state of the art system for less than $3.00 a watt, installed, before incentives? Don't take my word for it, search the Internet and you'll find many articles concerning homeowners who are having difficulty selling because they have solar leases attached to their homes.
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