The recent climate crisis has increased the demand for eco-friendly products. Cotton bags, recycled product packages, and solar energy are slowly becoming commonplace among the general public. Solar panels, in particular, are one of the most popular ways to reduce global pollution for several reasons.
For one, it’s completely renewable energy since we can’t run out of sunlight. It’s eco-friendly, as it doesn’t require any resources to produce, nor does it create any toxic waste. Because it can generate just as much power as traditional energy sources, it’s the perfect alternative to replace fossil fuels.
If these benefits weren’t enough, solar properties are also extremely valuable on the housing market! However, what about the warranties? If you sell your solar home is the warranty transferable to the new homeowners? Here is a complete breakdown of how to handle your solar panel system during a house sale.
How Solar Panels Increase the Value of a Property
reduce your carbon footprint and help the environment. But, they also offer other benefits you wouldn’t expect — they can increase the value of your property!
Because of the climate crisis, the government is currently implementing green initiatives to get the general public to switch to more sustainable energy sources. One initiative involves offering tax exemptions to solar-powered properties. For example, over 36 states give solar-powered properties a 100% tax exemption.
A few others give exemptions for the first 10 to 20 years. Beyond that, the government offers owners upfront rebates to cover a portion of the installation cost. Local utilities also grant owners rebates for their energy bills.
You can get a production tax credit or PTC for the power that your system produces. When you factor in how much money making your own energy saves you on utilities, it’s no wonder solar properties are very sought after on the housing market. Having a set of panels on your property will increase its value by as much as 4.1%. For a median-valued home, that comes out to $9,274.
The cost will vary depending on your home’s location. So, for example, solar-powered homes in New Jersey go for a staggering 9.9% more than a home without panels, while solar homes in South Carolina are worth just 3.5% more.
Is the Warranty Transferable?
In light of all the benefits, you may be ready to sell your solar-powered home for an increased profit. However, before putting it on the market, you first have to consider the warranty on your system.
In simple terms, solar panel warranties are legally binding contracts that protect the owner for panel reliability and production output. The warranties also cover the owners in case the panels break down, or they need routine maintenance. For potential buyers, the warranty is important because it reassures them that the system is fully functional and doesn’t have any defects.
In most cases, you can easily transfer the warranty to the new homeowner. However, some solar panel companies restrict warranties to the original property owner. Therefore, before selling your home, you’ll have to consult with your solar panel provider.
First, you should inform them of your intention to sell so they can initiate the transfer process. This will usually involve drawing up new warranty papers and checking the credit status of the potential buyer. If the buyer’s credit status supports the solar panel, the company will invite you to sign the new papers, transferring ownership to the buyer. Afterward, you can close the escrow agreement to make the transfer final.
The demand for sustainable energy is on the rise. Therefore, having a solar system on your property is very beneficial if you’re looking to sell. However, just because someone buys your home doesn’t mean they own the system that comes with it.
You’ll have to contact your solar panel manufacturer to transfer the warranty from your name to theirs. Once that’s done, they’ll be able to enjoy a highly cost-effective energy source while reducing their environmental impact.