Solar Panels – An idea whose time has come for Phoenix homeowners?

 

Solar Panels in Phoenix – A Good or Bad Idea?

Solar panel installationWith  a nickname, The Valley of the Sun, doesn’t it make sense for Phoenix and surrounding cities to readily embrace any electricity saving device that leverages the abundant supply of year round sun?  Some homeowners are taking advantage of our seeming never ending supply of this natural resource.  This is a topic which both buyers and sellers need to be very informed because the number of houses for sale with solar panels will continue to increase. As of Nov. 2015 approximately 2.5% of the homes for sale offer either leased or owned solar systems.  And understanding the difference in th resale market of leased vs. owned solar panels is extremely critical.

Growth of Residential Solar System Popularity in Phoenix area cities

The U.S. residential sector added 1.2 GW of capacity in 2014, marking its first time surpassing the 1 GW Solar Panels on Cooperthreshold. Residential photovoltaic continues to be the fastest-growing market segment in the U.S. solar sector, riding three consecutive years of 50 percent or higher annual growth according to a Scientific American article in March 2015.

The growth of solar system popularity in Phoenix can be seen in the sales of homes since 2010 with solar systems. Below is a chart showing the properties sold by year in Maricopa county with solar panels as reported in the MLS.

ScreenHunter_101 Nov. 16 18.31

Want to receive homes for sale? Click on receive the latest homes for sale to have homes for sale delivered to your inbox  automatically.

Leasing vs. Owning Solar Panels in Arizona

As you investigate solar systems, there is a fork in the road; leasing vs. owning. Whether you are purchasing a system for a home, or buying a home becoming knowledgeable about leasing vs. owning solar systems is very important.

When you consider leasing solar panels don’t just consider the short term benefits you’ll reap in addition to the low or no upfront cost.  Adopt a long term perspective that includes the sale of your home, being aware of the complexities that will arise when you decide to sell your home.  In terms of leased solar panels, look at it as if you’re a prospective buyer that has to assume your lease. How easily is the lease transferred?  Will  it make financial sense to the next owner? Will the numbers show a clear advantage for a buyer?  How difficult will it be to qualify when a buyer is required to assume the lease?

tiny-house-solar-panels-design-and-installation-600x450Another important factor to be remembered is the treatment given to solar panels by appraisers, both leased and owned.  According to Fannie Mae, leased solar panels may not be included in the appraisal value of a property.  It is considered personnel property and not an asset. And the payment must be included in the buyer’s qualifying ratios for the loan. Typically,  leased solar panels can decrease the value of a home which is contrary to what home owners believe.  Mike Orr from ASU’s W.P. Carey School recently suggested that a leased solar system can detracted 3 – 8 percent from the value of a Phoenix area home.

The other alternative; owning a solar system does add value to a home.  However,  in many ways it will most likely be like a pool where you don’t get the full investment upon resale but it does cause the house to sell at a premium.  Appraisers will look for similar home sales that have owned solars systems or add a value based on the cost savings generated by the system.

Comparing the  difference between homes sold in the last 6 months with leased vs. owned solar panels on a $/sq.ft. basis shows a significant difference.  For the analysis,  I looked at homes sold with leased and owned solar panels in Gilbert, Chandler, Scottsdale, Mesa, and Tempe for the last 6 months. Homes with leased solar panel systems sold for $138/sq.ft. while homes that own the solar panels sold for $153/sq.ft. Homes with owned systems sold for 11% more than those with leased solar panels.Solar house front

If you’d like to receive listings of homes with solar panels or not, click on receive the latest homes for sale to have homes for sale delivered to your inbox  automatically. Please describe in detail what type of home you’re looking for.

Related Posts

Gilbert Homes for Sale

Chandler Homes for Sale

Gilbert Waterfront Waterfront and Lake Communities

Buyer Due Diligence – Buyer’s Advisory

3947 E DOUGLAS LOOP

3947 E DOUGLAS LOOP
Price: $344,900
SqFt: 2039
# Beds: 4
# Baths: 2.5
Acres: 0.17
City: Gilbert
State: AZ
Zip: 85234

3631 E SAN REMO AVENUE

3631 E SAN REMO AVENUE
Price: $330,000
SqFt: 1795
# Beds: 3
# Baths: 2
Acres: 0.19
City: Gilbert
State: AZ
Zip: 85234

630 S MONTEREY STREET

630 S MONTEREY STREET
Price: $317,500
SqFt: 1863
# Beds: 3
# Baths: 2
Acres: 0.15
City: Gilbert
State: AZ
Zip: 85233

624 W ORCHARD WAY

624 W ORCHARD WAY
Price: $349,995
SqFt: 2836
# Beds: 4
# Baths: 2.5
Acres: 0.16
City: Gilbert
State: AZ
Zip: 85233

611 S PORTER STREET

611 S PORTER STREET
Price: $334,999
SqFt: 1762
# Beds: 3
# Baths: 2
Acres: 0.26
City: Gilbert
State: AZ
Zip: 85296

1505 E BAUTISTA ROAD

1505 E BAUTISTA ROAD
Price: $349,900
SqFt: 1888
# Beds: 3
# Baths: 2
Acres: 0.15
City: Gilbert
State: AZ
Zip: 85297

3502 E ARIANNA AVENUE

3502 E ARIANNA AVENUE
Price: $349,900
SqFt: 2199
# Beds: 4
# Baths: 3
Acres: 0.19
City: Gilbert
State: AZ
Zip: 85298

2575 E CAMELLIA DRIVE

2575 E CAMELLIA DRIVE
Price: $310,000
SqFt: 1654
# Beds: 3
# Baths: 2.5
Acres: 0.25
City: Gilbert
State: AZ
Zip: 85296

1097 E BROOKS STREET

1097 E BROOKS STREET
Price: $337,000
SqFt: 1683
# Beds: 3
# Baths: 2
Acres: 0.14
City: Gilbert
State: AZ
Zip: 85296

1345 S BANNING STREET

1345 S BANNING STREET
Price: $313,000
SqFt: 1803
# Beds: 4
# Baths: 2.5
Acres: 0.07
City: Gilbert
State: AZ
Zip: 85296

 

Leave a Reply

Your email address will not be published. Required fields are marked *