Solar in Arizona has been rapidly advancing and homeowners around the valley are taking advantage of the lower costs that come with the advance of technology. The home storage batteries have evolved drastically and are becoming more and more affordable for Arizona homeowners looking to go Solar. Areas like Arizona, California, Nevada, Texas, and Florida have seen an increased interest in solar technologies where people can take advantage of the great weather and save some money on electricity at the same time.
If you are looking to buy a solar home in Arizona, or are considering converting to solar electricity you will want to read what we have put together for you. The video featured is a client testimonial from an Arizona resident that purchased a solar home with the help of our resident solar specialist. When buying or selling a solar home in Arizona, you will want to know what the added costs are, where the savings are, what kind of maintenance does the equipment requirements, are the solar panels leased or owned? These are the most common questions we are asked when working with anyone new to solar.
How Much Are Rooftop Solar Systems?
This is dependent on how many panels you have if the system was purchased, leased, and what the rates are. All of this information can be obtained from your Arizona Solar Home Realtor. There are calculations that can be used to determine the annual value of a solar system as it relates to energy savings. I’m not going to walk through that process here, but we will in person. There are too many variables to account for that can get lost in translation without a true example to use. There are not any two solar systems that are alike, hiring a solar realtor to truly assess the added value of the solar system is why you choose us. We will not only handle the sale of your Arizona home, but we educate you and the buyer on the value of the system and why it’s worth the extra money. Each system gets evaluated and appraised independently from the home, making each solar system in Arizona unique from the rest.
There is a document that was released by the appraisal institute that gives buyers and sellers a resource to reference when buying or selling a home in Arizona with solar. The Residential Green and Energy Efficient Addendum can be provided to you by your solar realtor as they document the system and build an appraisal around it. This addendum is also valuable for your solar specialist when appraising the value of the system. It also provides a place to account for the increase in green technologies and solar advancements in the home. Solar power, solar hot water heaters, and solar lighting are all things that can be included.
Another resource that can be accessed by buyers and sellers is a free online solar appraisal calculator that has been approved by the Department of Energy and sanctioned by the Appraisal Institute. The calculator uses what we call an income approach to evaluate the value of the rooftop over the next few years. This flexibility gives your solar realtor the opportunity to adjust and calculate multiple factors so that they can conclude on a fair market evaluation.
Buying A Solar Home In Arizona With A Purchased Solar System
There are thousands of homes in Arizona with solar panels, but a very small percentage of homeowners actually own those. When buying a home with solar panels installed on the roof, you need to consider that those panels could be leased. Buying a home with a solar lease isn’t a big deal, we can walk you through the lease transfer and provide you with the information you need to make an educated purchase. When solar panels are leased there are many factors to consider including the terms of the lease, more specifically how much and how many years are you stuck with it. The two most common ways to get solar panels on the roof of your Arizona home is to lease or purchase.
Purchasing Solar Panels In Arizona
Cash is king! If you buy your solar panels outright then own them and you’re done except for occasional maintenance or repairs. A homeowner that purchases the solar system with cash, creates what we call “real property”, and in the industry that is in reference to fixtures on the home. Obviously rooftop solar panels are fixed to the roof and would be considered as such, making it part of the appraisal of the home.
Homeowners who purchase a solar system outright with cash own the system. That’s the simplest scenario in a real estate transaction. A solar system purchased outright is considered “real property,” in real estate parlance, or a fixture of the home, and can, therefore, be appraised as part of the home’s value.
Leasing Solar Panels In Arizona
Leasing options are probably the most popular in Arizona, and definitely the most affordable short-term option. The homeowner in this scenario pays the solar company for the rights to use the solar system for a duration of time identified in the terms and conditions of the contract. While the solar system is mounted to the roof, the homeowner doesn’t actually own it and must continue paying the lease for the duration of the agreement. In this situation, the home must be appraised separately from the solar system and cannot be included with the appraisal of the property. These leases will require a solar specialist to navigate the buyer and the seller through the lease transfer process. If there is an escalated solar lease attached to the property, then there may need to be some adjustments with the appraisal to account for that. I know this can sound like a lot, but don’t let it discourage you from buying a solar home in Arizona. Our team of solar specialists is here to assist you on this journey.
Solar Real Estate Agents In Arizona
As solar realtors, we are aware of all the pitfalls that can come with lease transfers if not handled properly. In some instances, there are timelines that need to be met so the lease transfer can be completed on time. Getting this process started early will make for a smooth and simple transaction. If the realtor you hire isn’t a solar specialist, there could complications that arise down the road. Make sure you ask questions, but more importantly listen to what your realtor is telling you. Does the individual sound like they are educated in solar real estate? If not, contact us and we would be happy to help you buy or sell your solar home.
Sellers and buyers of Arizona homes may be confused about how to navigate transactions that involve solar and will look to you for guidance. If training is available in your area, seek it out. At the very least, make sure you have a working knowledge of the pros and cons of solar and feel free to use this blog as a source of information. If a real estate solar coalition or related association exists in your area, they may have additional resources and contacts to help.