Many homeowners question if installing solar panels will increase their home’s value and cause it to sell faster. If you own the solar system, then the answer is a resounding YES. But if you have a leased solar system, the answer could be YES or it could be MAYBE.
Solar panels create electricity, which in turn, can cause your electric bill to shrink or even be eliminated. When you have solar panels on your home, you benefit from the electricity they create.
There are two popular ways to pay for solar panels: leasing them and owning them. When you lease the panels, you agree to make monthly payments for a set amount of time. Often there is little to no upfront money required. When you own the panels, you pay for the system up-front but have no ongoing payments.
Owned Solar Panel System
Purchasing a solar panel system with cash, or financing a purchase with a solar loan, is your best option when you…
- Want to maximize the financial benefits of installing solar panels, rather than solely benefiting from the system’s environmental benefits;
- Are eligible to reduce your federal and state tax liability through the federal investment tax credit;
- You are a business, and can realize tax benefits by treating the solar panel system as a depreciable asset; and/or
- Want to increase the market value of your home by installing a solar panel system.
Given the current political environment, it is always possible that the federal tax credit may not last beyond the end of 2017, even though it was projected to last until 2022.
State grants or rebates can vary. In Delaware, it depends on whether Delmarva Power or Delaware Electric Cooperative provides your electricity. With Delmarva Power, there is a $3,000 grant that you will get back a year after purchase. With the Coop, there is a fixed amount of money granted each December that is divided up by the number of people in the queue.
Should you buy or lease your solar system?
Notice that last bullet above that talks about enhancing the market value of your home with an owned solar system. If you own the solar panel system on the home you are selling in Delaware, you will sell your home faster and for more money than the same home without solar.
Both an owned and a leased solar system save you money on your electric bills. The purchase price of a solar system can be $15,000 to $30,000 before rebates and incentives, and for some that cost is prohibitive. A solar lease can be a good idea if you cannot justify the upfront cost of installation and you plan to live in your home for many years to come. The terms of the lease are what make a lease attractive (or unattractive) to someone buying your home. As long as you are saving more money from the electricity the solar panels create than you are paying in lease payments over the course of the year, the solar panels could be considered an asset to someone looking to buy your home.
For more information about buying, financing or leasing your solar panel system, check out this helpful article here.
Clean Energy USA ceusa.com
There is no such thing as forever. But if you do think you will be selling in a few years, purchasing a solar panel system as opposed to leasing, could be the better idea. With a leased system, the lease may become part of the negotiation if and when you decide to sell your home. Although leases are transferable to the new owner, the buyers need to be willing to accept the remaining lease terms. Many people today recognize the benefits of solar, but as the seller, we recommend that you complete a Solar Sellers Disclosure when you list your home.
Finally, if you are thinking about putting a solar system on your home, consider doing something before the end of 2017. You will definitely benefit from the significant federal tax credit.
Have questions about buying or selling your Delaware home with solar? Give us a call at 302-424-1890 or email Broker@ActiveAdultsRealty.com.