With the hottest months of the year upon us, it might be tempting to harness the power of the sun to lower your electricity bill. Despite an average of 23 days of sunshine a month, there are relatively few homes in Maricopa with solar panels.
According to MLS, of the 1,985 Maricopa homes sold between May 1 2023, through May 1, 2024, 131 (6.6%) were listed with solar energy systems. About half (63) were owned outright, with 48 under lease and 20 more requiring loan assumptions.
But how will it affect your bottom line?
According to EnergySage.com, a solar panel installation in PInal County ranges from $9,412 to $12,734. That’s before a 30% federal solar tax credit. With a 5kW solar system generating about 8,760 kWh of solar energy annually, the average payback period is about 10 years. Over the course of 20 years, you’ll save a little over $22,000.
When selling, a solar system that is 100% paid off will increase the sale price. Generally, you’ll get $1,000-$1,500 per kW of the system.
Panels can also be leased or purchased through financing. However these options will not give you a positive return when selling. In fact, if the sale requires a buyer to assume loan or lease payments, it may take longer to sell and the final sale price may be lower than comparable homes with no solar.
With most lenders, monthly solar payments increase a buyer’s debt-to-income ratio and, thus, decrease a buyer’s purchasing power.
Leased solar panels are not considered part of the home. They don’t add value on the appraisal, and often, the monthly payment increases from year to year.
Additionally, the new owner of the home may have to qualify with the solar company. I have had experiences where a buyer gets approved for a mortgage of $400,000, but gets denied by the solar financing company.
So if you do have a home to sell with solar, how do you show the buyer the benefits?
Don’t be afraid to brag. Emphasize how much money you save. Provide written documentation on annual savings to explain kW and panel efficiency. You’ll demonstrate value if you can quantify the savings. Is it $100 per month? Three hundred? Include this info in the MLS or leave a copy of recent electric bills on the kitchen counter.
Dayv Morgan is a Maricopa Realtor and owner of HomeSmart Premier.
480-251-4231
[email protected]
MaricopaHomeSmart.com
Sponsored content
This post was originally published on 3rd party site mentioned in the title of this site
