Sellers often ask me, “Is solar a good investment for my home?” To understand the different options for solar energy out there, it’s important to rank the options from worst to best. Based on my professional opinion and experience as a local agent, I’ve ranked some options for you today from worst to best.
- Solar lease: Although this was the most popular when solar came out, it’s now become the least favorable. Particularly, if a prospective buyer isn’t interested in solar, they might ask you to pay that lease off. It can be expensive if you’ve leased it for fifteen to twenty years.
- Financing solar with a principal and interest payment: If a buyer asks you to pay this off, you’re only paying off the principal balance without penalty.
- The Power Purchase Agreement: This is currently the most popular out of all options. For the most part, a solar company -- your new electric company -- will install solar for free into your home. They’ll also maintain and monitor the system without money out of pocket. You sign a twenty-year deal with this company typically, but there’s no extra cost and this reduces your electric bills.
- Buying solar outright: This is the best option if you have or borrow the money. You essentially eliminate your electric bill when you do this. This is attractive to buyers because that’s hundreds of dollars they save each month.
When you invest in solar, you add value to your home! If you have any questions about solar, please give me a call today.
