Selling Your Home With Solar

Solar is the most popular way to get away from ever-rising energy costs. Yet many homeowners worry that if they have solar they won’t be able to sell their house.  All new homes in California are required to have solar, and in many older neighborhoods more than 50% of the homes also have solar.  With this kind of market penetration, clearly the fear of home sales is a myth.  But why does the myth persist?

In this short article I outline the steps you need to take if you are selling your home with solar.  These simple steps will help you and your realtor to avoid any delays and make sure the process is simple and quick.

It may be helpful to read this article by the home listing agency Zillow on how solar can increase the value of your home.

Over the years I have spoken with many realtors regarding solar and home sales. They all have told me the same thing:  Selling a home with solar is not a problem as long as the following steps are taken.

Whether you have a Financed Purchase, or a PPA (Power Purchase Agreement) the steps are the same.

1) As soon as you decide to sell the house, contact your solar company right away to let them know.

All the realtors have told me this is the place where most homeowners make a mistake. They wait until the home sale is about close to contact the company.  Like any company, it takes time to process paperwork, so you want to make sure to inform them as soon as possible.

2) Locate your Solar Contract and give a copy to your realtor.

It is important that the realtor know whether you have a PPA or a financed purchase.  If you are not familiar with the terms of your agreement, or are unsure if you purchased it or did a PPA, contact your original sales rep or the solar company and ask for details.  If your realtor is unfamiliar with solar, that is a red flag that your realtor is not very experienced, you may consider asking for their manager’s assistance or someone who is more experienced.

3) Details the realtor needs to know: 

·      Is the system owned outright- free and clear?

·      If the system is a financed purchase, what is the monthly loan payment and how much is remaining on the loan?

·      If the system is a PPA, what is the monthly payment and is there an “escalator”  a yearly increase such as 2.9% or is there no increase (0%)? What are the various buyout options for the PPA if the new buyer wants to own it?

In my ten years of selling solar, I have not had any customers who have had issues with home sales. Cash, Financed, PPAs all went smoothly simply because they followed these steps.

Following these steps as soon as you decide to sell your home will enable a smooth transfer so the new homeowner can enjoy the benefits of solar as well.