Let's talk about solar power... (Phoenix: real estate, renting, credit check)

[Potential_Landlord]

Originally Posted by AZPam

I haven't read all 12 pages, so forgive me if this was already addressed.

Regarding the leases, please, please, PLEASE have a lawyer look over the lease for you! Recently solar leases have become a huge issue when selling a home. I can only speak for my experience with Solar City on a recent sale I handled, but it was a potential deal killer. Talking with other agents, they are also experiencing the same thing.

One of the biggest hurdles my seller faced was that the buyer had to qualify for the lease. While that wasn't a problem for these buyers, once they started looking into the lease more they found out their lease rate would no longer be the same and it could actually go up every year. To prevent that, there was a one time buy out that my seller had to pay to make this deal work, to the tune of $5,000. I've heard from other agents that their buy outs were sometimes double that amount.

So, please, have a lawyer read your lease before signing so you know what you are getting yourself in to.

Thanks for telling us, Pam! This is really important information. Do you also see an owned solar system as a deal killer sometimes or at least making the sell worse? I am planning on having a solar system installed, purchased by me.

[Potential_Landlord]

BTW~ what happens if you rent out your home temporarily? I may be transferred overseas for a year by my employer and would like to rent out the house. Does my tenant get the same terms when he pays the electric bill then?

[Potential_Landlord]

Also, now that he utility favoring Republican duo won the primary for corporation commission, what do you think will happen to solar? Will they slap additional taxes and fees on solar or even scrap net metering?

[HX_Guy]

I just saw something today that said FHA is no longer inuring loans on homes with solar leases? Is this true? Seems that more and more things are stacking up against solar leases.

[arleigh]

I built my self a shop trailer, and mounted my solar panels on it ,my battery system is on it as well.
When I was renting , I merely ran a line to the house and provided my own power for certain things and attached nothing to the house .
When I move the trailer goes with me.
Now that I am in a permeant location , I can make my own modifications to the house in wiring and such freely but still the trailer set up is still doing it's job.
I have added to it as well through the years both panels and wind mill and more battery bank.
Never did the leasing , I figured I had to learn how things worked to be a good steward of it .
It has been a worth while investment through the years ,and in the event something happens to me , my son can take it where ever he goes.

[AZPam]

Originally Posted by Potential_Landlord

Thanks for telling us, Pam! This is really important information. Do you also see an owned solar system as a deal killer sometimes or at least making the sell worse? I am planning on having a solar system installed, purchased by me.

I have only sold one home that the system was owned. It was a huge selling point for that buyer as the seller was very knowledgeable and had all his documentation to back up everything, including his electric bills. What I found interesting is how much you have to keep the panels clean for the best use

As far as a rental goes, I'm not totally sure, but you are still owner of the property and therefore responsible for the lease. I don't think it would really affect the renter, but I would certainly check into it to be sure.

Originally Posted by HX_Guy

I just saw something today that said FHA is no longer inuring loans on homes with solar leases? Is this true? Seems that more and more things are stacking up against solar leases.

Yes! This just came out last week and I had forgotten or would have mentioned it.

This is still a new development in resales, so I do think we will see more about this in the coming months/years as more homes have them.

[stevek64]

Originally Posted by arleigh

I built my self a shop trailer, and mounted my solar panels on it ,my battery system is on it as well.
When I was renting , I merely ran a line to the house and provided my own power for certain things and attached nothing to the house .
When I move the trailer goes with me.
Now that I am in a permeant location , I can make my own modifications to the house in wiring and such freely but still the trailer set up is still doing it's job.

No HOA, eh?

Originally Posted by AZPam

Regarding the leases, please, please, PLEASE have a lawyer look over the lease for you! Recently solar leases have become a huge issue when selling a home. I can only speak for my experience with Solar City on a recent sale I handled, but it was a potential deal killer. Talking with other agents, they are also experiencing the same thing.

Personally, I wouldn't buy a home where I had to take over a lease of solar panels based on some of the issues AZPam brought up, especially when some of those leases sold might have some "gotchas" in there where people weren't aware of what they were signing. Not that we would have any problem qualifying but I also wouldn't want that "overhead" if we decided to up and move in that house in the coming years. And given in the coming years, I'd be willing to bet solar panels will evolve to be very cheap, have more capacity, less space required, etc like everything else technology wise and don't want a 10-15-20 year lease that I'm locked into holding.

Just another view.....

[Potential_Landlord]

Originally Posted by AZPam

I have only sold one home that the system was owned. It was a huge selling point for that buyer as the seller was very knowledgeable and had all his documentation to back up everything, including his electric bills. What I found interesting is how much you have to keep the panels clean for the best use

As far as a rental goes, I'm not totally sure, but you are still owner of the property and therefore responsible for the lease. I don't think it would really affect the renter, but I would certainly check into it to be sure.

.

Thanks Pam. I actually meant a rental with a purchased solar system. The tenant usually pays the electric bill in his own name. The solar system is owned by the owner. Does the net-metering continue as before when the owner paid the electric bill? Actually I figured it out. The tenant would benefit from the net metering as well.

[bgray9]

Originally Posted by HX_Guy

I just saw something today that said FHA is no longer inuring loans on homes with solar leases? Is this true? Seems that more and more things are stacking up against solar leases.

Just curious if there's verification on this from FHA somewhere, as I don't see anything about this on the FHA website or in the news.

[AZPam]

Originally Posted by bgray9

Just curious if there's verification on this from FHA somewhere, as I don't see anything about this on the FHA website or in the news.

Here is the link one of my preferred lenders sent out to me:

https://www.facebook.com/OliverWhale...397792?fref=nf