When you go to sell your home, what you do with your solar array is a big decision that can have a momentous impact on your savings, sale price, and more in the state of Utah. Keep reading to learn more about Photovoltaics’s place in the sale or refinancing of your home.
The Sale of Your Solar Panels with Your Utah Home
A study done by Lawrence Berkeley National Laboratory revealed that solar panels can boost the value of your home. This value increase is close to the cost of getting solar alone, and that’s not including the savings on the energy bills themselves.
Take Your Investment With You
If you love your solar system/array, and don’t want to part with it, there are solutions. If you got your system from a full-service company, they can uninstall your solar array and then reinstall it. If you are a Go Solar Group customer and you move to a new home in Utah or another area that we service, we can reinstall your panels onto your new home as well.
Homeowners who went through two different companies to undertake the installation and purchasing of the panels won’t be as lucky. It’ll be hard to find a company who knows what they’re doing or a contractor who knows what they’re doing to handle the moving of the panels themselves without you having given them money for the install.
That’s just one reason the truth behind post solar refinancing and selling of Utah homes can be eye-opening. For many looking into solar in the state of Utah, there is a fear that your new investment is going to prove to be a hindrance. Like most good investments, the hindrance is only psychological. You have to wait to see the return, and if you can weather the initial stages and make a few smart moves, you will see the ROI ten-fold.
Does Solar Mean Getting a Lien on Your Home?
When you get solar, there are a couple of ways to obtain it. The two main ways are leasing or getting a loan. Leasing generally means that you’re signing a power purchase agreement (PPA), and you don’t own.
When you get your system through a lease, the system is not yours. When you acquire a solar array through a loan you are the owner of the system but are paying for it over time. In both cases, the solar financing company who issues your solar loan will be able to help you find a way to secure your investment.
If your home foreclosed and your lenders didn’t have any claim, the solar array would go with the home. This is why, as with any large investment that isn’t paid in cash, there needs to be protection in place for the lender.
When you get a loan, this protection is in the form of a purchase money security interest or PMSI. This secures the collateral for the lender.
It is important to note that for solar, your collateral is the solar array you have installed, not your home. So, the short answer is no, there shouldn’t be a lien on your home.
Refinancing After Getting Solar
Although the PMSI or UCC-1 fixture filing on your panels is not a lien on your home, this will, however, show up as a filing on the title of your home.
If you are wanting to refinance, your lender may not allow you to do so until this filing is clear. There are a couple of ways that you can get around this, but they require research and time, which most homeowners in Utah (even ones who are financially secure enough to go solar) may not have time to undertake.
Getting the Filing on your Title Removed While Refinancing
The company that installed your solar panels can help get filing removed during the refinancing process. Make sure you ask the solar company what their process is before you get your system installed. The installation team may not know, but a sales assistant or project manager will be able to equip you with the resources you need to give them the details they need.
Consolidating Your Loan
Another way to avoid having a hold placed is to refinance before you purchase solar. When you do this, you can pay for your system in cash, which eliminates the need for a UCC-1 fixture filing.