Home with a Solar System Lease; should I buy or not?
 

Assumptions:

1. The system is leased.
2. Net Profit/Loss I estimate to be a loss; meaning I pay more for system than what I save on electric based on average cost per kwh.
3. Cost of all payments over 25 years is $56k
4. No Batteries; so won't have power fail backup
5. Lease is assumable to new homeowner.
6. We love the home they are attached to.
7. Seller has reduced asking price by $20k

Asking the Hive mind if we should just go ahead and purchase the home; which we really love.

Thank you!

The lease is assumable. But can you buy without solar power?

Yeah, if it's price $100,000 less than what it's worth, without the Solar System.

$56,000 to pay for a Solar System that's going to lose you money.

An extra $15,000 when you need to replace the roof ... & take the solar system on & off.

Plus aggravation.

There's nothing special about any home in The Villages. No matter what you want or where you want it, another will be coming along for sale.

How about breaking the lease and removing it? Is that an option?

So what does the electric bill indicate on how much is saved on the bill? What is the return money from seco or duke?

How old is the roof. Because as pointed out it’s not cheap to remove and replace.

Whatever the model, if it’s a spec home, I assure you there will be more than 100 with the same exact interior and exterior.

You didn’t say if this was a view to die for, or a giant garage which is most important over the house. What makes this home special.

If you have to have the house I would make the deal that the solar has to be paid off. But that just me

since you asked, I would find another house to love. There are many available.

Wouldn’t take on that solar contract during this buyers market with so many other options available. Make an offer to purchase, adjusting the price for not taking on the contract. If the seller resists, walk away. The sellers poor decision shouldn’t become your responsibility.

Also, check to see if there is a lien on the house for the solar system, if so, RUN away, as you may not be able to break the contract. IMHO, I would not consider any house with solar, unless this was completely paid for, and then as noted previously you are assuming the additional costs when the roof is replaced. One final item, check with your proposed insurance company about the implications of the solar panels, additional costs for coverage, etc.

I would find a new love. :0000000000luvmyhors

I would make an offer contingent upon the seller removing the solar panels and and clearing any liens.

I wouldn’t touch a solar house with a ten foot pole!

The only people that talk positive about them are those that bought the solar premise already. As in misery loves company!

I am a GREEN certified REALTOR. Not all solar system are as efficient. You can ask the sellers to provide a certificate to show the efficiency of the system. A Pearl certificate is one. You can ask for before and after electric bills to ascertain how much savings you are getting from the solar system. If it proves you would be paying more monthly fore the system than you would pay on an electric bill, do not buy the house. Or, if you love it, give an offer that request them to remove the panels with them paying the penalty, if applicable. Other questions to ask: Is the net metering plan grandfathered? What is the warranty on the system? Does it include a reduction of fees when the roof has to be replaced? How old is the system? the inverter? Who was the manufacturer? Look up that manufacturer though a thorough AI (NOT Google AI) to find out how reputable of a company it is.

I would never purchase home with solar not sure how Florida works but in other parts of the country usually when the solar is leased there is a lien on the house from the solar company.Also when you have to replace your roof, you can add an extra 15 thousand to remove those solar panels and replace them. There are so many homes available six in our courtyard villa neighborhood right outside of Brownwood available inventory is high location is so important.

This sounds just like the house next to ours.
We warned the guy not to get into this type of contract as they are either very difficult to get out of or are very expensive.
Unfortunately he was in declining health and went ahead. His family have been trying to sell the house for about 18months. Many viewings but so far no sale.
Even if you can make it work financially - you still have that issue of any future sale bias to consider.
Be careful.

I would not even consider it.. The lease stays on the home and your stuck with it.

Solar not bad-just economics
 

I installed a solar system in my Pennsylvania house and the system worked out quite well-generating a healthy profit and requiring zero maintenance. Florida incentives much lower. It is just a question of economics.

If a properly done installation, panels should withstand hurricanes. A little worried in that Villages Roofs tend to be truss roofs. I had a 2x12 beam roof which was very strong.

Estimate value the loss of lease payments net of electricity saved and make sure the property purchase price reflects it. Bear in mind that electric rates all over the country are likely to climb over next few years due to AI buildout while solar energy is at a fixed price. Not too much different than moving to the village and looking at houses with bond outstanding vs bond paid off.

The seller needs to pay off the solar lease and provide proof that the lien on the home is satisfied. I would never recommend taking on the lease for the solar purchase. Those systems are way overpriced and oversold. They add nothing to the appraised value of the home. Speaking as a former Realtor in another state so I don't claim to know Florida law on this topic.

Just to echo others...run from this house. There are other options and there is no good reasons to assume the financial liabilities of the current owners poor choice.

Assumptions?
 

ASSUMPTIONS will cost you the MOST money of all. Do your homework. Good luck.

STAY FAR AWAY FROM THAT HOME! PERIOD! It'll cause you more pain and heartburn than any person should have to endure. You WILL NEVER recover the cost via supposed energy savings. The math will NEVER add up.

I totally agree, but even the Federal Government publishes information that a solar system will increase the value of your house. So, even they are complicit in the scam.

Run…… run away

VERY BAD IDEA…. You will regret it just like so many other’s who took the bait. You are no longer paying your utility company, you are relying on the solar company to pay your bills. Just don’t do it….

"Beams" typically support floors, not specifically roofs. A 2"x12" may be a roof rafter, but not usually not a beam (unless it was a tiny house).

Trusses are generally, pound for pound, inch for inch, stronger than dimensional lumber.

Solar system are usually fairly light-weight and most any roof structure that meets recent building codes, can bear the weight of a solar system.

What do you do when you have a roof leak and the solar company can't or won't fix it, and the roofer won't work on a roof with solar panels? In my opinion, installing solar panels on a perfectly good asphalt shingle roof is always a bad idea.

Save your $$ for the grandchildren!

Move on, I wouldn't touch it with that on the roof.

If these are just assumptions, you need all the facts. There are different types of solar systems. It needs to be a Type 2 system to supply all your electric. That requires a million dollar liability. Even then, no guarantee if there are too many rainy cloudy days. The seller probably benefitted from the tax credit, so should pay off the lease!

Thats great advice regarding the insurance company. I haven't done that yet.

Well, if you really love the house tell the seller will buy the house butt not take over the lease. The seller will then have to make a choice to pay off the system or not sell the house to you.

Such great advice from all. I'm leaning towards walking away. The house had the roof replaced in 2019 and has a Golf Cart Garage and lots of other upgrades. I've asked the sellers if they would pay off the lease, but have not heard back as yet. I'm already under contract on my home, so I have to find something very shortly.

read the to be purchased contract from vendor
cost to break lease
cost to remove panels
cost to reshingle house

add 30% to the total of the above costs

deduct from asking price.

bid on the house, and tell the seller that the price is good until you find a better value as you will keep looking, and keep on looking!

you are being the seller's "exit liquidity of last resort", and you may get the house on your terms. . .

rent short term, fully furnished to take your time finding your dream home. . there is no rush to buy. . and right now, its not a great time to rush buying. . our house was rented primarily by people moving into the villages and had not found a house to buy yet. .

Purchase the home but don’t assume the lease the leasing company will remove them.

Excellent advice from Sportsguy. Ask yourself if you are moving to Florida to relax and enjoy the life you have left or if you want to take on a big problem that may keep you busy for a long period of your retirement trying to straighten things out.

Yes consider renting for a while and take the burden off yourself (BTW, we did it this way).

If your cost is $56 k , that’s over $2200 per year. I doubt your electric bill would be much higher than that. I also doubt the system will last 25 years. Does not sound very attractive at all. I would pass on that one!!

It’s summer and tons of homes are available to rent at great prices. Rent for a month or two then find something in a different area. It a great way to figure out where you will enjoy living.

As several others have noted, rent for a few months before you put in another offer. We got rid of most of our furniture and household items by giveaways, donations, trash, etc. then contacted Pods for their smallest container and had it shipped to Ocala. They store the containers in a conditioned warehouse. Once we settled on the new home we contracted for new flooring, countertops and painting. Also had purchased furniture and scheduled its delivery in concert with the arrival of the Pod, and set up the house in very short order.

You can also move all your furniture to a climate controlled storage.