LEASED SOLAR IN REAL ESTATE SALES

Why leasing solar panels may not be a good idea if you’re planning a home sale

Jill Chodorov, November 17, 2015 (Washington Post)

“…[Some] homeowners have learned the hard way that it pays to read the fine print [in solar lease deals. As] solar ¬powered homes come on the market for sale, unexpected issues are bubbling to the surface. What’s more, almost all of the issues are happening to homeowners who lease rather than own the solar panels, which comprise an estimated range of 60 to 90 percent of the market…Explaining solar panels and lease agreements is a new issue for local real estate agents…[and] there are many challenges involved in appraising and selling a home with leased solar panels…The rules [on leased solar systems for FHA loans] are cumbersome and confusing…[Also, solar] companies make it very difficult to buy out a lease agreement in the first five years...[because they don’t want to lose the five-¬year depreciation] on the equipment…[B]uying solar panels is not as expensive as most believe…If you determine that solar would be a good investment, it may be better to purchase now, before the 30 percent federal tax credit expires.” click here for more

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