Selling A Home With Solar Panels
Solar power energy is becoming more and more popular in Ontario. You see solar panels, or photovoltaic panels, on the roofs of homes in Cobourg and Port Hope, or on the ground in Hamilton or Haldimand Townships. Solar modules are typically held in place by racks or frames that are attached to ground based or roof mounting supports. These panels produce energy, there are a number of things that energy can do and where it can go. But having solar panels will impact the process when you want to sell your property. Some panels are installed solely for the benefit of the property owner. These types of installations are typically found on rural properties. You’ll see them in Hamilton, Haldimand and Cramahe Townships. With this type of this installation there will need to be special, or extra, wiring and equipment. Making the buildings more expensive to build – and the generated power will reduce the cost you pay to the utility. Both of these situations will make the sell believe their home is more valuable.
Some panels are installed in such a way that the electricity they generate is sent into the hydro grid – the owner sells the power to the utility. The hydro is metered or measured as it leaves the private installation and the utility pays a predetermined price per KiloWatt Hour. Sellers believe this setup will also increas value.
We’ll leave the mechanics to others ……. as your real estate agents out concern is
Solar – Included in the Sale ?
This can be a bit of a sticky one. The owner will believe, and rightly so, that the panels are an income generating part of the deal. Similar to an apartment that can create a positive cash flow.
If you include solar panels in the price of the home, it might make the price seem out of reach for some buyers. You can also list them separately from the price of the home to show exactly what the buyer has to pay.
In any case you will need supporting documents, which your Northumberland Home Values Group agent would have attached to the listing agreement, clearly showing the cost of the panels, income generated each year, expenses for each year, number of years remaining on contract and projected income and expenses for the remaining years.
This will give the potential buyers information they will need to make a decision based on price and return on investment.
The contract can be assigned to the new homeowner,subject to approval by Ontario Power Authority. The seller has to initiate the process by signing into his/her account with a unique password and start the process. The new homeowners or their lawyer have to submit an application to OPA electronically. There should be communication between the seller’s and buyer’s lawyers at all times during this process to ensure smooth transfer of ownership. This is best done by the lawyers to avoid mistakes, which can delay the approval.
Having a Solar Array on your property or the property you want to buy can be a wonderful thing. You just need to be sure you have an experienced real estate agent, one who understands both sides of the equation and has helped others navigate their way through, on your side.
At the Norhumberland Home Values Group we are here to help.