Thinking Solar? You May Get Burned!

I love the idea of solar power for homes, lowering energy costs while improving the environment. Many of my clients have enjoyed the benefits of solar. However, some solar power clients are learning that what they thought would save them thousands is burning a hole in their pocket.

Thousands of homeowners have entered into leased contracts for solar, and right now thousands more are thinking about it. Contracts vary by company, but we have seen some of these contracts cost homeowners dearly. Here are a few things to look for in your contract:

1. Does the solar company put a lien on your home?

2. If yes, does it guarantee they will subordinate to a lender in the event you wish to refinance? If they won’t, the vast majority of lenders will not refinance your home.

3. In the event you sell your home, is the lease assumable? Many leases require full payment upon the sale of your home. Imagine listing your home thinking the lease is assumable only to find out your proceeds are going to be reduced by $15,000 to buy out the lease.

When thinking about purchasing or leasing a solar power system, do your research, consult with multiple companies, and speak with your realtor, lender and the utility company to discuss short term and long term ramifications of purchasing or leasing a solar power system. This extra research could save you from getting burned.

When thinking about purchasing or leasing a solar power system, do your research, consult with multiple companies, and speak with your realtor, lender and the utility company to discuss short term and long term ramifications of purchasing or leasing a solar power system. This extra research could save you from getting burned.REW02