Buying a House with Solar Panels – Pros and Cons

As the demand for green living and lower utility expenses continues to grow for homeowners, pre-installed solar panel houses are becoming a regular feature in the marketplace. If you are a potential purchaser, your mind may be wondering whether a house running by the sun is a worthwhile investment. While these residences have plenty of pros to the equation, a number of cons are also associated. 

If you’re weighing the pros and cons of buying a house with solar panels, this guide will help you navigate your decision process. Keep reading this guide from BrickWood Mortgage for a breakdown of the pros and cons so that you may know whether a pre-installed solar panel house is the way to go for you.

The Sunny Side: Benefits of Solar Panels

Reduced Power Bills

One of the most attractive benefits to a home that has solar panels is the potential for tremendous saving. Buying a house with solar panels installed means that solar power systems generate energy from the light of the sun, which could reduce or even eliminate your electric bills each month. Occasionally, you will produce more power than you consume and sell the excess power back to the power company for credit. This could translate into tremendous long-term saving for the life of your mortgage.

A Greener Footprint

For environmentally-conscious buyers, a property that incorporates photovoltaic panels is a real asset. Solar power is a green, renewable source of energy that has zero greenhouse gas emissions. By investing in a sun-powered dwelling, you are personally reducing your household’s carbon footprint and giving your all towards a greener tomorrow. This is a very popular option for those that are interested in being green.

Higher Property Value

Research has actually revealed that a property that has solar panels tends to sell higher than a similar property that doesn’t. The possibility of paying less for energy is a powerful selling point for most home shoppers that can drive your property’s resale value higher. This translates to the fact that if you sell the home later in life, the investment in this type of installation may offer a good return.

Tax Credits and Incentives

Depending on where you are located, having a home that has solar panels may qualify you for federal, state, or local tax credits and incentives. VA home loans in South Carolina may allow buyers to take advantage of specific benefits when purchasing energy-efficient homes, including those with pre-installed solar panels. It is a way of promoting the renewable energy adoption and will reduce the expenditures related to the system. It is a good idea to find out what is offered in your area because it will complement the benefits of buying the system.

Potential Downsides to Consider

Front-End Cost and Financing

Since you’re already not purchasing a new installation, the original cost of the existing solar panel installation is factored into the price the house is sold for. This could mean the original cost will be higher than a similar non-solar home. You will need to consider whether the higher original cost is within your budget and its effect on your mortgage. Some buyers find themselves considering buying a house with leased solar panels, which may have different financial implications and responsibilities compared to owning the system outright.

Repairs and Maintenance

Panel systems for the sun are typically long-lasting, but need periodic maintenance and the possibility of repair over the long run. You will be the homeowner responsible for keeping the panels spotless and running properly. Consider the possible repair or replacement expenses, particularly if the system is aged and no longer has a valid warranty.

Dependence on Weather

The efficiency of the solar panel will directly depend on the exposure to the sun. On stormy or rainy days or when it’s cloudy, the energy generation will be weakened. Even though most of the solar systems are connected to the power grid to ensure a stable power supply, your consumption of the power from the sun will depend on the conditions.

Your Next Steps

A property that has embraced the installation of solar panels is a sound investment that will yield long-term saving and environmental benefits. Conversely, a point of consideration is that it’s offset by increased initial costs and maintenance requirements. With a decision in mind, it may be wise to review area incentives, have the condition of the solar system assessed, and review the advantages and disadvantages in alignment to your personal and fiscal objectives.