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Posted by Paul W. Cutler on 7/30/2017

One of the best things that you can add to your home is a solar power system. These can be costly but they save you a lot in the long term on utility costs. While government programs have scaled back for these energy saving improvements over the years, thereís still many benefits to them. You can even get a loan specifically for installing solar power to your home.


Before you take the leap, youíll want to know for sure if solar will really add value to your home. Of course, you want a return on your investment. 


The good news is that thereís no doubt about it that installing solar panels does definitely add value to your home. Thereís one caveat to the value: You should own your   solar power system as opposed to leasing it through a solar company or a power purchase agreement. 


Homes that have solar panels sell for more money simply because they offer a definite return benefit to the future owner. 


Does A Leased Solar System Offer The Same Benefits?


Owning your solar system will save you more money in the long run than leasing your system. When you own a solar power system, the FHA requires that the total value of your solar system be added to the total value of your home when you go to sell it. If you lease the panels, this value cannot be added to the home during an assessment.   


If you have financed the system, the rules may be a bit more lenient. While you technically donít own the system, you are paying towards owning the system yourself. Each lender will have their own standards for this, so check with them for specifics, as your home must meet certain standards and eligibility requirements. 


Securing A Mortgage With A Leased Solar System


If someone is looking to secure a mortgage with a leased or currently unowned solar energy system, there are a few hurdles that you might face through the process. These problems include:


Solar lease payments must be included in the buyerís debt-to-income ratio. 

The panel owners must have a third-party insurance to cover damage to the property thatís being mortgaged in the event of malfunction or faulty installation of the panels.         


Solar Panels Are An Overall Great Investment


Itís really hard to go wrong if you purchase or finance your solar panel system. As long as you own the system, value will be added to your home. Youíll also save on your own utility bills. Your home will undoubtedly become more attractive to buyers if you decide to sell your home in the future.




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