solar panels good or bad?

Question

Hello,

Offer accepted on a SFH with leased solar panels for 20 years.  Panels are only 3 month old and the monthly fee is $100 paid to the solar company.  Electrical bill is only $10 - $20.  Current owner can transfer solar panels to new house if I don't want them.  I leaning toward asking owner to remove the panels for the following reasons:

1. I would have to add $100 to the rent to cover the panels which might overprice the rental

2. Solar panels would be a capital expense

What would you do, keep the panels or get rid of them?   Thanks.

Terre B. · Answer

Ok that is what I thought.  The original poster said "leased".  Thank you for the clarification.

Andrew Smith · Answer

Hi @Terre B. Leased systems yes. They are not allowed to be appraised. Owned systems are allowed for appraisal. They also have a UCC1 filed on the system as equipment and no lien on the property.

Terre B. · Answer

Is there no issue with them and the financing?  Just a question, since daughter had leased solar on her house, and when she sold it, there was a huge issue with the lender.  Buyer was willing to take over the lease but the lender refused to allow.  Some clause about anything permanently affixed to the property had to be owned by the property?

William Wiggins · Answer

Monthly electric bill seems to be the driving consideration. Get last 12 electric bills and find amount for average local electric bill, then you can see how panels benefit you, breakeven, or allow tenants to use excess energy at your expense. Best case scenario: an almost fully electric SFH built to be energy efficient (insulation, HVAC, limited water usage & heating, windows, etc.), then PVs can possibly help bottom line. Also, tenants must be responsible for excesses in utility use.

Andrew Smith · Answer

Hi @Thomas N.It would totally depend on what the underlying utility bill would be without solar - if it's going to result in a $150 bill for tenants without compared with $100 with then better to keep. I would see what it would take to pay off the leased panels and own them either cash or financed. Leased solar systems are not able to be appraised, whereas owned systems are. If you own the system and then you are having your tenants pay for them while they benefit with lower monthlies - win-win.