There are many benefits when it comes to purchasing a home with solar panels. Solar panels are a sustainable energy source that reduce negative impacts on the environment, save you lots of money on utility bills, raise the value of your home, and aid during emergencies where power may be cut off. It’s no wonder that more and more people are looking to purchase properties with solar panels.
While the benefits are numerous, there are also some considerations to take into account when it comes to purchasing a home with solar panels as well as when applying for a fixed or variable rate mortgage on a solar-powered property. Here are some things to know before you buy:
- Appraisal
Since solar technology is still developing, and is relatively new, it may be more difficult to get an appraisal on the home. In areas where solar panels are more common, appraisers will be able to be more accurate about the home’s value. However, if you are buying a home in an area with less solar energy, there’s a risk that the home could be over, or under, valued. This can work out in your favour, but it’s worth trying to find an appraiser who is knowledgeable about solar energy to avoid the risk of the home being overvalued.
- Owned or Leased?
The most important thing to know when buying a property with solar panels is whether the system is homeowner owned, or leased from a solar company.
If the panels are homeowner owned, it’s a big plus. Homeowner-owned solar panels increase the value of the home by a substantial amount. Leased solar panels, however, require little to no money upfront so don’t do as much for the value of the home.
Many home buyers are put off by leased solar panels as they don’t increase the value of the home and may seem like an additional complication. However, whether or not the home’s value is increased, leased solar panels will still provide positive impacts on the environment and save you money on electricity.
- Energy Consumption
If you are unsure whether solar energy is right for you and your lifestyle, it’s helpful to speak to the sellers of the home. By comparing their lifestyle and energy consumption to yours, you can get a better idea about whether or not solar energy would be right for you and your family. You may even ask to see their utility bills to get an idea of how much you would be saving.
For any questions about getting a fixed or variable rate mortgage on a solar-powered property, make an appointment to speak to one of our mortgage experts today!
