Should I buy an East Bay home with leased solar panels?
The home may be right for you. That does not mean the seller’s solar lease is a good deal. Review the agreement before deciding what the property is worth to you.
A long term, annual payment increases or an expensive buyout can turn an appealing feature into a financial commitment you would never have chosen yourself. Do not assume that panels on the roof mean the electricity costs will be low.
Compare the combined bill
Ask for the complete lease, recent electricity bills and available system production records. What is the payment today? Does it rise each year? How much of the term remains?
Then look at what the seller still pays the utility. Solar customers can continue to receive utility bills as well as the bill from the solar provider. Compare the combined cost, rather than focusing only on the lease payment.
Remember that your household’s electricity use may differ. A different occupancy pattern or an electric vehicle can change the comparison. Use the seller’s records as evidence of the system’s operation, not a promise of your future savings.
Read the transfer and buyout provisions
Find out what the solar company requires to transfer the agreement. Is approval needed? What steps, charges or deadlines apply? If a buyout is being discussed, obtain the actual written quote and confirm what buying it out would accomplish.
Also establish who handles maintenance and repairs under the contract. If the roof needs work, find out what removing and reinstalling the panels would involve and who would pay.
These details should be resolved while you can still make an informed purchase decision, not left until the closing date is approaching.
Make an unattractive lease part of the negotiation
You can ask the seller to buy out the lease, or discuss a price adjustment that makes taking it over worthwhile. That proposal should be based on the actual contract and costs.
A price reduction does not rewrite the lease or remove transfer requirements. Be clear about what the agreed solution actually delivers.
Judge the home and the agreement together
Some leases may fit the buyer’s needs. Others may deserve a firm objection. The useful answer comes from the payment schedule, electricity records and obligations you would take over.
Before accepting a seller’s solar lease, let us help you identify the documents and costs that need to be compared.
Sources
Meet Alessandra Imanabadi
Co-Founder, Real Estate Advisor, Licensed Real Estate Broker
With more than 23 years of real estate experience serving the Bay Area and over $250M in negotiated and completed transactions, I bring local knowledge, careful analysis and experienced guidance to buyers and sellers throughout the Bay Area.
DRE #01390368 · NMLS #328245
Direct (510) 504-2528
NationwideFineHomes.com
Connect with Alessandra
Categories
Recent Posts
