Solar Homes

You can purchase battery storage to go with your system, which can hold a few days’ worth of power. These batteries are pricey, but if you purchase them along with the main system you should receive any available federal tax credit for the combined cost.

Most states have exemptions that protect solar homeowners from increased property taxes. Keep in mind, most homeowners gets a one-time Residential Renewable Energy Tax Credit based on their system’s cost. Added components, such as battery storage or a new roof may be able to qualify for the tax credit as well.

A leased system or power-price-agreement (PPA) allows the homeowner to purchase their electricity at a lower rate than what they would pay the utility company but the homeowner does not actually own the system that is mounted on their home. This can cause big challenges when selling the home. The buyer’s credit must qualify them for the lease. Certain home loans have lower credit requirements than solar leases. The buyer might qualify to buy the house, but not to take on the solar lease! Also, the solar lease will affect the buyer’s debt-to-income ratio, so taking on the solar lease might reduce their ability to qualify for the home loan.

When a solar system is financed, there is a Uniform Commercial Code (UCC) filing. Simply put, that is a legal filing that states that a creditor may have an interest in the property of a debtor. In order for the filing to be terminated, the system needs to be paid in full. If a buyer is assuming the loan or lease/PPA payments, the UCC filing must be temporarily removed for the real estate transaction and is then re-filed after the closing.

If the sun beats down on your roof and that roof is in good condition, you most likely are ready to go solar. A southern facing roof surface is ideal for a solar array, but there are many options. For example, my own roof line runs North-South but my Western facing roof surface gets plenty of sunlight, and my Western facing system produces enough to offset our household electric usage. If your roof is at the end of its practical life, you might want to roll a new roof into the cost of the solar system. Many solar loans will allow this and you may even be able to get the federal tax credit on the entire cost, including the roof.

There is rarely a need for maintenance to be performed by the homeowner. Solar panels are cleaned by rain and snow. In dry, dusty regions, periodic rinsing may be necessary but should be avoided during daylight. Systems are not installed under trees, so there’s little chance of debris landing on your system. As for other maintenance, there aren’t any routine tasks. Keep in mind that the system’s warranty only covers system defects and not “incidentals”, such as a brave squirrel chewing through the wires.

1. Solar loan. This is how most people purchase a system for their existing home.
2. Home Equity Line of Credit (HELOC). These are offered by banks and allow you to use the equity in your home to finance your system. This can be one the most cost-effective ways of going solar, as they offer low rates and your solar system becomes a cash-purchase.
3. Lease the system. These contracts typically don’t have any downpayment or fees and the lease payment replaces what you were spending for electricity, ideally at a much lower monthly cost.
4. Title One loan. This is not a well-known loan, but it’s a great option for Rhode Island homeowners who want to go solar! Currently, only two lenders in Rhode Island offer this product and we have relationships with both. Need to add a new heating system? Why not install electric heat and solar panels to power that heating system? The possibilities are endless.