Solar Power - Not So Sunny - Part 2

Part 2 in a series of blogs examining the effects of #SolarPower on the selling of a home.

Meet Mr. and Mrs. Smith (not their real name) who retired to their oasis in the Valley of the Sun.  Abhorring the idea of paying more than they have to for anything, they decided to install #solar power on their 2000 sq ft single level home with a pool.  Upon meeting them to list their property, I discovered that they had a very nice lease payment - $60/month.  After speaking to them for a while, it was eventually revealed that they had made a $7000 up-front payment on the lease of the solar equipment.  That is enough to pay for about 4 years worth of electricity bills at their house.  Now, after having the equipment in for less than 3 years, they want to move again.

The representative from their solar company says that they can move all their equipment for $1000.  That is not very much money.  In their lease, it says that they can only move the equipment if: 1) They are in the same utility district 2) They have to pay the costs of all new permits,  3) They have to deliver an easement to allow the installation of the system.  It also doesn't say that the company will move it for $1000.

In addition, any person who wants to buy their house also has to qualify for the lease.  If they don't qualify, then the Smiths have to pay off the lease and have the option of transferring the warranty to the new owner.

At this point, the Smiths have paid about $8,830 for electricity over a period of 2 1/2 years.  That is about $295 for every month that they have owned the system - Winter, Summer, Fall and Spring. About 30% more than they would have without the solar.  If the average cost for a house like theirs is $200/month, it will take 7 years just to break even and that is only if the system completely replaces all the energy supplied by their electric company which is not the case.  They still make monthly payments to the electric company as well.

So, the new owner will get a sweet deal - he won't have the $7000 up front, and will spend less for his electricity right up front.  By deciding to lease a solar system, the Smiths are effectively giving the new owner $7000 off the purchase price.

There is more to this story - did you know that solar panels degrade, and produce less electricity as time goes on?  More on that later.


#Avondale , #Goodyear , #Buckeye , #Glendale,  #Phoenix, #Surprise, #Peoria, #Tolleson, #Laveen, #Waddell , #Wittman