Understanding Solar & Your Home

Proudly prepared for you by

Susan Kraemer

“The dream catcher for YOUR home”

Phone: (623) 229-6167

Email address: [email protected] Website: www.HomeDreamcatcher.com

©2023 REAL BROKER. Information not verified or guaranteed. If your home is currently listed with a Broker, this is not intended as a solicitation.

Understanding Solar & Your Home As a real estate professional, one of the most common questions I am asked is whether to add solar to a home. Nearly everywhere we turn, homeowners are being encouraged to install solar panels and equipment on their homes with the promise of saving energy, tax credits, and much more. AND home buyers are making decisions as to whether to purchase a home that already has solar panels/equipment based on the short- and long-term benefits and cost savings. Although solar energy can result in lower utility bills, there are many questions that need to be answered prior to installing solar on your home OR purchasing a home with solar equipment. As a real estate professional who sees the impact of solar panels on the ability to purchase or sell a home, I am providing you with some information that should guide you through the decision-making process. Included in this booklet: • Solar Information Form: Information to either provide to potential buyers if you are selling your home OR questions to ask if the home you are purchasing has solar panels. • Questions to ask OR information to obtain as you make your decision regarding adding solar OR purchasing a home with solar. • The SOLAR ADDENDUM that is used when purchasing a home – this is an additional document that is included with most purchase contracts if you are using a licensed real estate professional. • Solar statistics in Arizona My goal is to provide education and resources to assist you as you consider the factors that will impact you before you make your final decision.

Solar Questions To Ask . . . As are considering leasing or purchasing solar, here are some things to think about:

Sellers: You are a homeowner and thinking about installing solar panels … what do you need to consider: • Contract your electric utility company for information / resources • How long are you staying in the home? Will you recoup your purchase/lease investment during that time? • How is the system tied into the grid? • Are the total costs (utility AND lease/loan payments) an actual savings? • What new technology is on the horizon? • Are there other alternatives (window film, windows, doors, insulation, new roof tiles, block wall film, etc.)? • Will a lien be placed on your property if you are leasing/financing? • Have you fully researched the company, how long they have been in business, and its reputation? Are they licensed installers or do they subcontract their work? Have you checked with the Corporation Commission? • Have you “googled” the company to see what online comments have been made? • How old is your roof? Will it need to be repaired/replaced during the time you have solar? If so, what are the costs for removing and re-installing the panels and equipment and who is responsible for it? • Have you confirmed with your HOA that your plan is acceptable? • What happens if your roof is damaged during installation? • Does your homeowner’s insurance or home warranty provide any coverage? • How many homes in the neighborhood have solar? • Who else has their system for a period of time for you to contact for feedback? • Does the solar company install protection on the system to deter birds from nesting?

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Solar Questions To Ask . . . Continued from prior page • Seller: Leasing? • Tax incentives go to the system owner NOT the homeowner • Is there a guaranteed savings written into the contract? • Are you ”locked into the rate” • What happens at the end of the lease? • Who is responsible for maintenance / equipment during the term of the lease? • What is the penalty for breaking the lease? • If you decide to sell … • Is the lease assumable? • Do the monthly lease amounts increase during the term of the lease? • What are the costs for transferring the lease? • Will the buyer be “locked” into your current rate? • Buyer will have to qualify for the lease AND the home loan. What is the credit score requirement for a new buyer? • Some leases make it difficult for or won’t allow a new buyer to get a home loan on the property with leased solar • What if a buyer doesn’t want the solar panels? What are your options and what are the costs? Seller: Purchasing outright or with a loan? • Tax incentives normally go to the homeowner • Are you buying outright OR getting a loan? • Is there a guaranteed savings written into the contract? • Are you ”locked” into the rate? • Tax incentives normally go to the homeowner • Are you buying outright OR getting a loan? • • •

Is there a guaranteed savings written into the contract? Are you ”locked” into the rate? Who is responsible for maintenance / equipment (during time loan is being paid AND after loan is paid)?

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Solar Questions To Ask . . . Continued from prior page Seller: Purchasing outright or with a loan (continued)? • If purchased outright, who monitors the system and what is the cost? • If you decide to sell … • Is the loan assumable if not paid for? • What are the costs for transferring the solar panels/equipment to the new buyer? • Will the buyer be “locked” into your current rate? • What if a buyer doesn’t want the solar panels? What are your options and what are the costs? Buyer purchasing home with solar (review the questions for Sellers above as well)? • Contract your electric utility company for information / resources • Will you as a buyer receive any tax credits? • Who actually owns the equipment? • Is the system adequate for you as a buyer? • What happens if the seller is removing the panels and equipment? (roof, exterior repairs, etc.) • What happens at the end of the lease to the panels and equipment? • If being leased, is there an option for buyer and/or seller to purchase prior to end of lease? • Obtain all information in the Solar Addendum • Has Seller provided monthly summary of utility bills? • What are the warranties for equipment? • What costs are you paying for solar (additional purchase price, assuming a lease or loan, etc.)? • Is the equipment current or outdated? • What is the expected life of the panels and other equipment? • Will your home financing be approved with the type of loan you are using IF the solar equipment is leased or there is a loan? • Will assuming the lease or loan affect the buyer’s debt-to-income ratio?

Solar Addendum

More and more homeowners have made the decision to add solar panels to their home. As a buyer, it is very important that you are aware of the type of equipment, the type of ownership, and any costs that you will be responsible for after closing. The SOLAR ADDENDUM will be a valuable tool in helping you learn more about the equipment and costs associated with the home you are purchasing. Susan will work with the listing agent to obtain as much information as possible. In addition, SUSAN recommends you reach out directly to the solar company to verify information AND contact the electric provider such as APS or SRP to determine what plan you would be eligible for since many plans are not grandfathered to new homeowners. Solar equipment can be either leased OR owned. If leased, it is possible the Seller will be asking you to assume the lease payments which means you will need to qualify for the lease with the leaseholder. If it is owned, we will want to make sure that it is fully paid off, as some systems that are owned have a loan which the Seller would either need to pay off OR they might ask you to assume the loan payments.

Proudly prepared for you by

Susan Kraemer

“The dream catcher for YOUR home”

Phone: (623) 229-6167

Email address: [email protected] Website: www.HomeDreamcatcher.com

©2023 REAL BROKER. Information not verified or guaranteed. If your home is currently listed with a Broker, this is not intended as a solicitation.