Tag Archives: solar lease

Rooftop Solar Leases Scaring Buyers of Homes

Posted on March 14, 2015 | Leave a comment

Leased systems are considered personal property rather than part of a house. For many potential buyers, a solar lease is a liability rather than an asset, and may drive some people away.

Have questions about solar leases; contact the appraisers at www.scappraisals.com

Scott Vineberg, a SolarCity customer, received multiple offers for the Scottsdale, Arizona, home he sold in January. The lease made the deal more complicated because the buyers were reluctant to take over the contract and asked him to pay off the balance in advance, about 10 years of payments.

“I don’t think they understood it,” said Vineberg. He refused to pay off the lease, and instead provided years of documentation to verify the monthly energy savings. After the sale closed, the buyers opted to pay off the lease, and Vineberg installed another SolarCity system at his new home.

He had to “price the house lower than houses without solar to get people interested,” said Brian Neugebauer, the real estate agent at Re/Max Excalibur who helped sell the property. Potential buyers, he said, were “scared of the solar lease.”

There was one more hurdle: to take over the contract, SunPower had to approve the new leaseholder. The buyer’s credit score was a few points short of the solar company’s minimum, and was initially rejected. Bishopp had to persuade SunPower to reverse its decision.

Read entire article: http://www.bloomberg.com/news/articles/2014-06-23/rooftop-solar-leases-scaring-buyers-when-homeowners-sell

Disclaimer: for information and entertainment purposes only

Want Solar but Can’t Afford-Leasing May be a Good Option

Posted on July 17, 2013 | Leave a comment

I’d like to buy a solar electric system but am not sure I can afford to purchase one. Is leasing a system a better option?

I hear this question a lot. Solar electric systems have never been more affordable than they are right now, thanks to record-low module costs, generous federal tax incentives and financial incentives offered by many local utilities. Even so, out-of-pocket costs for a system that would meet the needs of a family of four for at least 30 years could run as much as $15,000 to $25,000 — or even more, depending on available incentives and the household’s annual energy consumption. Not surprisingly, a price tag like that creates sticker shock in a lot of potential customers.

Will a leased system affect the value of my home? Contact the appraisers at www.scappraisals.com for your home value questions. What happens if you want to sell your home?

Don’t despair! For those who can’t afford the upfront cost of a solar electric system, one option is to secure a loan so that you can make monthly payments. In some cases, this option can result in payments lower than your current monthly electric bill. And, as you suggested, solar leases can be another good option.

You could potentially lease a solar electric system from any third party, but it would typically be from a company that specializes in solar leases. Two such companies are SunRun and SolarCity, but you’ll want to search online to find what’s available in your area.

In general, two types of solar leases are available. The most common is an operating lease. In this case, the third party (the lessor) installs the system at its expense and is therefore considered the owner of the system. It receives all the tax benefits, such as the current 30 percent federal investment tax credit, and local utility rebates, if any. The terms of lease agreements vary considerably and are often tailored to the finances of the homeowner or business owner (the lessee). Some operating leases require no upfront payment, while others require a small down payment. The cost of maintenance and component replacement may fall on the shoulders of either the lessor or the lessee.

Disclaimer: for information and entertainment purposes only

A Solar Panel Tupperware Party

Posted on June 12, 2012 | Leave a comment

Ever heard of Tupperware parties for solar energy? Neither had I—until last week, that is, when I received an invitation to attend one.

For years, Lora Berg and her husband, Karim Chaibi, had been interested in the prospect of solar energy for her own house. But the upfront cost to install a system of panels on her roof, seemed prohibitive.

When the family returned to their Chevy Chase house last year after several overseas tours, they revisited the topic.

“It turned out we were lucky to come back at the perfect time to enter the market,” Berg said. “I had never thought I could actually do this.” After some research with the help of DC Sun, a coalition of solar neighborhood co-ops, she found several companies that offered lease-type arrangements in which no large investment from the homeowner is required—or even none at all. She invited two. Both provided her with proposals (see below) for monthly energy costs.