Selling a House in Florida with Solar Panels

Life can be unpredictable. You installed solar panels on your house hoping for many years of producing your electricity. Now, you have to sell your house only a few short years after installing the solar panels. You know that solar panels can increase the value of your house in Florida, but you’re worried they might complicate selling your house.

Surprisingly, selling a house with solar panels is easier than you might think. This guide will teach you what you need to know. We’ll answer your questions and let you know what you need to do based on how you funded your solar energy system.

Tips on Selling Your Home With Solar Panels

Solar power systems are gaining popularity nationwide. This is because the cost of solar panels is dropping, and their efficiency is increasing. In the real estate market, there’s a growing demand for homes with solar power. You can see this in how quickly these homes sell and the higher prices they fetch compared to homes without solar panels.

So, how can you make the most of this demand? Here are some tips to help you convince potential buyers and realtors that buying a home with solar panels is a smart investment.

Financial Benefits of Solar Power to the Community

At first glance, solar panels might seem more expensive than homes without them. However, they offer immediate and long-term benefits that can outweigh the initial cost. Here are some reasons you can use:

  • Lower energy bills: When your solar panels generate the electricity you need, it can lead to lower electricity bills.
  • Protection from rising energy prices: Electricity costs are going up each year. A solar power system can shield you from future price hikes.
  • Credits for net metering: If your solar panels produce more electricity than you use, you can send the surplus to the electricity grid and receive credits for net metering from the utility company.
  • Increase in home value: Solar panels currently boost home values by an average of 4.1%. Plus, these savings could keep growing over time.

Note: Net metering availability varies. Check with your electricity provider to see how your rates are set up for your home.

Selling a House in Florida with Solar Panels

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Environmental Benefits of Solar Power to the Public

Solar panels generate clean, renewable, and emission-free electricity, making solar energy an excellent choice for eco-friendly homeowners. Here’s why:

  • Solar energy reduces air pollution.
  • Reduced CO2 emissions: By using solar energy, we lessen the demand for fossil fuels and limit the release of greenhouse gases. This helps shrink our carbon footprint.
  • Reduced Waste: Solar panels are durable and can last for over 25 years with minimal cleaning and maintenance. Plus, most of the technology used in solar panels can be recycled.

Warranties and Service Agreements Should Be Communicated

When selling a home with solar panels, it’s a good idea to introduce your solar provider directly to the buyer. This way, they can transfer any contracts, service agreements, warranties, and more.

For instance, ESD Solar takes the burden off our customers by helping both the seller and buyer with transferring service agreements and warranties. These warranties are automatically transferred to the new owner.

You can find details of your ESD Solar Warranty in your Installation Contract.

Do an Appraisal of Your Home

Having a new appraisal that includes solar panels can increase the value of your home. It’s a good idea to work with an appraiser or real estate agent who has experience selling homes with solar panels.

Here are some valuation methods they might use:

  • Income-based valuation: This method focuses on the projected income that the solar system is expected to generate over its remaining life. It helps demonstrate the return on investment for potential homebuyers.
  • Cost-based valuation: With this method, the cost to build the current type of solar system at the home is calculated based on its quality.
  • Market-based valuation: This method determines the market value of your home by comparing it to homes without a solar system and observing its impact on the value of the home.

Do Houses with Solar Panels Make It Easier or Harder to Sell?

Installing solar panels in your Florida home can increase its value. There is also evidence that houses with solar panels sell more quickly than those without. It can be a relatively smooth process if you know both the advantages and challenges of selling a home with solar panels.

Easier to Sell With Solar

Solar panels are low maintenance and likely offer greater value to homebuyers over time. They should be a major selling point because of these benefits.

  • Homebuyers are Willing to Pay More: Homeowners are increasingly willing to pay a premium for homes with solar panels.
  • Less Maintenance: Assuage buyer concerns by noting that cleaning solar panels, when necessary, is not complicated. Solar power systems are built to resist the elements and won’t be easily damaged.
  • Financial Benefits: Installing solar panels can reduce monthly energy bills, especially if you use less electricity than what the system produces.
  • Protects the Environment: A home with solar panels can reduce greenhouse gas emissions.

By emphasizing these advantages, you can make selling a home with solar panels an easier and more appealing process.

Harder to Sell With Solar

When selling a house with solar panels, you might face these obstacles:

  • Buyer Hesitation: Some buyers may not grasp the benefits of a solar power system and worry about maintenance, repairs, and upkeep.
  • Agent Hesitation: Some agents may struggle to explain the benefits of solar systems, making the buying process harder.
  • Seller Issues: Selling a solar panel system can get complicated without necessary documentation, potentially leading to a loss of added value.
  • Valuation Challenges: An inadequate appraisal might fail to convince buyers that your home with solar panels is worth more than similar homes in the area.
  • Solar Lease Concerns: Buyers might be wary of homes with leased solar systems since the panels belong to the installers, and transferring the lease can be tricky.

Selling Your House With Owned Solar Panels in Florida

Selling a house with owned solar panels is straightforward. You don’t need complex arrangements to transfer ownership. Homebuyers typically prefer houses with owned solar panels over leased ones, often paying more for them.

Sell Your Home with a Solar Loan

When selling a home with a solar loan, the lending institution can assist in transferring the loan. Your choices when selling will vary based on whether the loan is secured or not. If you bought the solar panels with a secured loan, you’ll need to pay it off. However, if you used an unsecured loan, you can sell the property before settling the loan.

Sell Your Home With a Solar Lease

Selling a house with leased solar panels in Florida can pose challenges because you don’t own the panels—the solar company does. To sell, you need to handle both the home sale and the lease transfer.

You have two options:

  1. Pay off the remaining lease payments.
  2. Find a buyer willing to take over the lease and payments.

It’s tougher to sell a house with a leased solar system, but it’s feasible. To avoid problems, everyone involved—buyer, seller, real estate agent, and solar company—should negotiate the solar panel lease together during the home sale.

Solar PPAs Can Help You Sell Your Home

Power Purchase Agreements (PPAs) are akin to solar leases in that they enable the solar installer to own the panels, while the homeowner enjoys solar energy benefits. Similarly to a solar lease, selling a house with a PPA involves selling the house first and then transferring the PPA to the buyer. Negotiations regarding the PPA should occur separately from the home sale, involving the seller, buyer, real estate agent, and solar company.

How Do You Move Solar Panels to a New Home?

You’re eager to relocate, but you cherish your solar panel setup. Sadly, the most common response is “No.” Moving solar panels is tough. There’s a risk of damaging them or your roof, which could lead to costly repairs. While panels are sturdy when installed, relocating them increases the chance of damage.

Moreover, your solar system is tailored to fit your home and energy usage habits. Installers usually advise against moving the system to a new home because energy needs and roof designs vary. You might not reap the full benefits if you do this. Plus, companies like ESD Solar won’t store owned solar panel systems for customers.

How to Sell a Home with Solar Panels

Selling a house with solar panels in Florida can be tricky, but a guide can help you navigate the process and maximize your investment return. It’s crucial to be clear about who owns the solar panels as a seller, as this can greatly impact the sale. Additionally, you can boost your chances of a successful sale by highlighting the benefits of solar panel ownership to potential buyers and real estate agents.

Providing as much information as possible upfront to your agent and potential buyers is key. In cases involving a Power Purchase Agreement (PPA) or solar lease, involving multiple parties in the sale can deter potential buyers.

If your home has solar panels installed by ESD Solar, it’s important to know your options when selling. This includes understanding ESD Solar’s protection service plans and how to transfer the warranty. Contacting the service department for an inspection to ensure your solar panel system is in good working order before selling your home is advisable.

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