Rooftop solar systems are becoming a common sight nowadays. People prefer installing solar panels on their rooftop to decrease their energy bills and gain profits in the long-term. Before they go solar, they try to ensure good financial returns for the solar plant.
That being said, if you plan to sell your solar home the big question is:
What benefits does it provide for the buyer and seller?
Imagine that a family wants to buy a home that facilitates the option of decreased or no utility bills. This is a bonus especially in a scenario where there is an increase in traditional utility bills over the years.
From the point of view of a buyer, a solar system provides the following benefits:
- Reduces dependence on utility electricity whose prices increase with time
- Reduced carbon emissions
- Long-term return on investment
For the seller, more often than not, a rooftop solar system not only increases the values of their home but also helps it to be sold faster. Solar panels are a home improvement measure that appreciates the value of your home.
How is the resale value of your home affected?
The impact of a solar rooftop system on the resale value of your home depends on the following factors:
- Type of agreement
Depending on whether the solar panels are leased or purchased, the resale value can vary. Sometimes, due to the complexities involved in transferring a leasing agreement, there is a lower preference to get into such agreements.
Finding the right kind of people to sell your solar home could add to your advantage. If the buyer is not environmentally-conscious, then he wouldn’t find value in a solar home as much as somebody who is.
- Local market conditions
The place where you are selling your solar home should be factored in. If it is in a place where the grid electricity is cheaper, then the buyer wouldn’t make sense of buy the home as well as the solar panels. Moreover, the laws with respect to leasing agreements might differ from region to region.
- Time you plan to sell
If you purchased the solar system and you plan to sell the solar system 5 years after you make the investment, you may have not availed the entire energy saving benefits as for a period of 25 years. So, even if sell the home for higher price, this may not compare with the significant profits you could have earned over the long term.
What are the hindrances to selling a solar home?
Recently, concerns have cropped up over complications due to leased solar panels in certain countries. In the US, there have been reported cases of buyers being interested in the house but refusing to buy out the lease panels. This indifference towards leased panels is arising due to the following reasons:
- Buyers unwilling to pay the substantial payments that are part of the leasing agreement
- Buyers who fear about the complexities involved in obtaining credit qualifications to take over the lease
Although this is only a minor fraction of the overall sale of solar homes, the increasing popularity of solar rooftop systems makes this a problem worth noting.
In summary, is rooftop solar power plant a good investment?
In general, as a result of the increasing awareness on climate change and the booming solar industry, there is a positive trend towards owning a solar home.
That being said, depending on the variables discussed, the market worthiness of a solar home varies.
Therefore, to understand the current market scenario for solar homes, it is advised to contact a real-estate agent before going through with selling your solar home.