Going solar is great. It saves people money, it’s good for the environment, and it’s the perfect conversation starter for neighborhood block parties.
So why wouldn’t someone go solar?
For some homeowners, the biggest hang-up is uncertainty around a simple question: What happens if I sell my home?
It’s a good question.
One of the lesser known benefits of going solar is that it can increase a home’s value. Solar homes, after all, have dramatically lower utility bills than comparable houses. That’s worth a lot. So if someone decides to move, they can simply add the value of the system into the asking price of their home.
There’s lots of evidence to support that solar increases property value.
In 2006 the National Renewable Energy Laboratory (NREL) conducted what was — at the time — one of the most exhaustive and detailed studies on this topic. They found that solar homes sold 20% faster, and for 17% more than equivalent non solar homes across several California subdivisions.
Over the last decade, these findings have been repeated many times over. More recently, a 2015 report by the Lawrence Berkeley National Laboratory examined over 22,000 home sale transactions across 8 states and found that home buyers are consistently willing to pay PV home premiums across various states, housing and PV markets, and home types.
It’s important to understand that these studies mainly look at cases where the homeowner is also the owner of the solar panel system. In other words a financed solar system, or one paid for with cash, almost certainly adds value to a home. It’s unclear if a third-party owned system (lease or power purchase agreement) will do the same.
One nice aspect of third-party owned systems is that they are typically transferable. So if a homeowner decides to move, they can pass along their solar agreement to the incoming residents.
At Sungage, we liked the flexibility this feature provided to homeowners, so we made it possible for homeowners to transfer their solar loan obligation as well.* This can be accomplished seamlessly as long as the new homeowner is willing and qualifies for a refinanced solar loan.
Sungage’s transferable solar loan is the best of both worlds. Financing a solar system with the Sungage Solar Loan should increase home value, which can be added into the asking price during a home sale. If, for any reason, someone wants to go a different route, well, no problem. They can simply transfer their loan obligation to the new home buyer who will take over the loan payments when the home sale closes.
We call that piece of mind.
At Sungage, we want to help as many homeowners go solar as we can. Providing flexibility when a homeowner needs to move is just another way we’re doing that.
*Applies only to loans funded by NBT Bank.
Raffi Wineburg is an Account Development Representative at Sungage Financial. He works with Sungage’s Northern California salespeople, helping them sell more solar with financing. In his free time, he enjoys a fierce competition on the squash court and solving puzzles.
For more information on transferability of a solar loan, please feel free to call us anytime at 844-SUNGAGE (786-4243) or use our live chat.