Shedding Light on Solar Panels Solar panels can be great for the environment and great for your bank account. There are many companies eager to sell them. They’ll even install them for you! All they need is your signature… Before agreeing to anything, it’s important to know the risks and to be aware of common pitfalls. Many (even most) contractors are honest providers of quality workmanship. Still, the savvy buyer should know what to look for - and what to avoid.

Different Types of Agreements There are several different ways you can arrange solar power for your home. Each represents a different level of investment. Owned Panels You pay in full for your panels; you are choosing to foot the entire bill. You will also own the entire system. If you are considering resale value (and who isn’t?) this is typically the best option. Solar Lease You enter into an agreement to lease the panels, but you do not own them. You are committing to a monthly expense, one which may escalate over time. Power Purchase Agreement (PPA) The installed equipment remains the property of the provider, and the homeowner commits to buying electricity at a specified rate from that provider. WHAT TO WATCH OUT FOR Leased Panels or PPAs typically require future that buyers be approved by the solar company before the home can be sold. This can make it harder to find a willing buyer, and harder to sell the home when you do. Owned Panels are the easiest to transfer. Agreement Length and Transferability An agreement with a solar company is a significant commitment over time. These agreements can be difficult, expensive, and even impossible to end or transfer. Most Solar Leases and PPAs last for 20 to 25 years. This will present a challenge when selling your home. If you absolutely must enter into one of these agreements, consider the following questions: Is the agreement transferable? What is the process for transfer? What is the cost? Is transfer guaranteed or can buyers be declined? Can you, as the seller, prepay the balance of the lease at the time of sale? Can you buy out the lease? Under what circumstances can the agreement be terminated? What costs are involved? WHAT TO WATCH OUT FOR If the agreement is not transferrable, or if it has strict buyer qualifications, it will present an obstacle to selling your home. Be wary of giving a third party power over the sale of your home. Monthly Cost vs Savings The upfront cost of Owned Panels may be considerable, although financing may also be an option. You should undertake a realistic assessment of maintenance costs over the life of the system. A Solar Lease or PPA will defer much of that cost over time. Such an agreement may also include required periodic maintenance on the solar company’s terms and at your expense. In the case of the PPA, there is also the cost of the actual power to be considered. It is important to consider the full cost over the life of the equipment - purchase, fees, maintenance, and power. Compare these costs to your existing utility costs. Having done the math, you will be in a much better position to determine which option is truly less expensive. WHAT TO WATCH OUT FOR Agreements often contain clauses allowing the provider to increase their prices over time. They may increase according to a set schedule, or they may increase at the provider’s discretion. An agreement to pay what the provider may decide to charge in 10 years is nothing less than a blank check. Additional Complications Liens or UCC Filings Some solar companies will place a lien or a UCC-1 filing on the home. This can significantly complicate both selling and refinancing. Verify whether there will be a lien that must be cleared before you are permitted to sell or refinance your home. Incentives and Tax Credits There are often tax credits or other incentives available to the owners of solar panels. In the case of a Solar Lease or PPA, those will benefit the solar company instead of the homeowner. Roof Age and Condition The presence of solar panels can complicate roof replacement or repairs. If your roof is aging, or in need of work, it may be wise to address that first. Buyer Perception Buyers may be reluctant to take on a long term lease or PPA, especially if they are not able to clearly see the long-term savings. High payments and low savings will scare them off. Bottom Line Well structured agreements can work to your benefit. They can reduce energy costs, they are environmentally friendly, and in the right circumstances they may still be a selling point to prospective buyers. So what can you do to protect the value of your home? Avoid long-term leases, especially if you expect to move before the lease would end. Stay away from  restrictive transfer or credit requirements. Look out for hidden fees, rate escalations, or costly maintenance responsibilities. Know whether a lien is being filed and what you can do about it. And speaking of home value, would you like to learn more about yours? I’d love to offer you a no cost, no obligation assessment of your home’s value in today’s market. Let’s connect! Verna “V” Regler 239.671.7279