Solar Panels – Worth It?
This is a question that has been asked a number of times over the past several years. As many big companies are sending people door to door to ask if you’d like solar panels, it has many people wondering and some misled as to whether or not solar panels add value to their homes.
With salesman coming door to door offering you this green energy, they are also offering lots of financing options to make this affordable to everyone. While it may be becoming more affordable, there are several things to consider on that financial aspect.
Leasing your solar panels – this option makes sense for many because you don’t have a long term loan on them and can enjoy the benefits. This definitely does not add value to your home though. Fannie Mae doesn’t allow lease solar panels to even make it on an appraisers list.
Financing – say you take out a $40,000 loan on solar panels. You’ve paid off $10k, leaving $30k left by the time you sell your home. If your buyer wants to keep the solar panels, then the question is – who pays off that loan? Either the seller will, which will cut into their profits OR the buyer is not only buying the home but also picking up a $30k loan along with the house (and that’s only if the loan is transferable)
Market Determines – analyze your market as to whether or not it makes sense to have solar panels. Many markets do support solar energy in which case it’s the matter of whether they are paid off or who is willing to pick up the tab. In the Houston Market, buyers have not shown a ton of interest in solar panels. Some even ask for seller to have them removed before closing which will be an added cost. There has been a slight market shift in interest in solar power but not enough to start calculating them into appraisals (again, Houston market).
If you want solar panels, get them for you and your feelings on green energy. There is nothing wrong with that. Do NOT get them simply to add equity. There are so many ways to add equity to your home but in the end, you are not likely to find solar power one of them.