Conducting a Home Purchase with Solar Panels Installed: Here's What Else You Should Verify
Buying a Home with Solar Panels: What You Need to Know
Solar panels are becoming increasingly common on homes, and for good reason. They offer a sustainable and cost-effective way to generate electricity. However, when buying a home with solar panels, there are several key factors to consider.
Ownership and Lease Agreements
When it comes to solar panels, the ownership type of the system can significantly impact your decision. Homes with leased solar panels may complicate the buying process because the lease payments and terms could transfer to you, potentially affecting mortgage approval and monthly costs. Leased panels can reduce upfront costs but might offer less financial benefit if lease costs rise faster than energy savings. Owned panels, on the other hand, usually increase the property value and offer direct savings on energy bills without ongoing lease payments.
Panel Condition and Maintenance
Assessing the condition and maintenance history of the solar panels is crucial. Worn or inefficient panels reduce potential savings. Most solar panel systems require occasional inspection and cleaning to remain efficient.
Homeowners Insurance
It's essential to check if the solar panels are covered under the homeowner’s insurance policy. Rooftop panels are often included, but ground-mounted systems or battery storage may need additional coverage. Inform your insurer to ensure appropriate coverage and to reflect the home’s increased value.
Roof Suitability and Solar Potential
Verify your roof’s condition, size, orientation, and shading. Ideal roofs have enough space (approximately 300 sq ft or more for average systems), face south or near-south, and get direct sunlight most of the day to maximize solar generation.
Energy Usage and System Size
Understand your home’s energy consumption to estimate whether the existing solar panels match your needs. The number of panels and their wattage determine how much electricity you can generate. Geographic location also strongly influences solar performance due to varying peak sun hours.
Financial Considerations
Solar panels generally increase home resale value, especially in areas with high electricity rates. However, upfront installation costs can be significant if you buy panels, or there may be hidden costs if you inherit a lease. Check for any available tax credits or incentives applicable to the system.
Other Factors to Consider
- Maintenance logs should be checked, and it's important to establish contact with the installer in case warranties or maintenance are required in the future.
- The MCS certificate is important to ensure the solar PV system has been installed to industry standards and is eligible for the SEG.
- Buying a house with solar panels can save the hassle of installation and keep energy bills reasonable.
- Check documentation for the solar panels, such as the feed in tariffs (FiTs) or the smart export guarantee (SEG), as these can affect the financial benefits of the panels.
- When making an offer on a house with solar panels, it's important to consider the potential costs based on the type, age, and maintenance of the panels, as well as the potential savings on energy bills.
- Leased solar panels can make it difficult to secure a mortgage, with some lenders refusing to offer mortgages on properties with leased panels and others having strict criteria.
- Find out if the solar panels are leased or owned before purchasing the house.
- Adding battery storage to an existing system can cost around £2,500.
- The solar system should also have an electrical safety certificate, a warranty and/or guarantee, and long warranties of up to 30 years are common.
- Mortgage lenders are generally happy to lend on homes with solar panels that are owned outright by the property, and some even offer incentives for energy-efficient homes.
- Solar thermal is not a compelling product anymore, and solar PV may require decommissioning if already installed.
- A solar panel survey is recommended before purchasing a property to ensure the equipment has been installed properly and to check for any potential issues.
- Check wiring connections for security and undamage, and check for shading on the panels, such as trees.
- Solar panels typically last for at least 20 years, but inverters may need to be replaced between 10 and 15 years.
- When viewing a house, make a visual inspection of the solar panels for dirt, debris, and damage.
In summary, when buying a home with solar panels, evaluate whether the panels are owned or leased, assess system condition and coverage under insurance, confirm roof and solar suitability, and consider how the solar system aligns with your energy needs and financial goals.
- The ownership type of a solar panel system can impact your decision, as homes with leased panels may complicate the buying process due to potential lease payment and term transfers affecting mortgage approval and monthly costs.
- Assessing the condition and maintenance history of the solar panels is crucial, as worn or inefficient panels can reduce potential savings.
- It's essential to check if the solar panels are covered under the homeowner’s insurance policy, as rooftop panels are often included, but ground-mounted systems or battery storage may need additional coverage.
- Verify your roof’s condition, size, orientation, and shading to ensure it has enough space, faces south or near-south, and gets direct sunlight most of the day to maximize solar generation.
- Understand your home’s energy consumption to estimate whether the existing solar panels match your needs; the number of panels and their wattage determine how much electricity you can generate.
- Check for any available tax credits or incentives applicable to the solar system to help manage installation costs.
- Maintenance logs should be checked, and it's important to establish contact with the installer in case warranties or maintenance are required in the future.
- When making an offer on a house with solar panels, it's important to consider the potential costs based on the type, age, and maintenance of the panels, as well as the potential savings on energy bills during your home-and-garden lifestyle.
