leased solar

Phoenix Solar Calculator: The Power of the Kilowatt Hour

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solar calculator

Solar Calculator – Watt’s your kilowatt number?

Phoenix basks in the glory of sunshine, and it’s not just about golden sunsets and tan lines; it’s about turning that abundant sunlight into power and potential property value. For home sellers with solar rooftops, understanding the significance of the cost per kilowatt hour (kWh) isn’t merely technical jargon—it’s a potent tool to determine whether your property will shine in the market or cast a shadow over potential sales.

Why the Kilowatt Hour Matters

In the grand mosaic of solar power dynamics, the kWh is the linchpin. It’s the unit measuring how much electricity your solar system produces and, crucially, how much it could save or cost a potential buyer. With the APS (Arizona Public Service) time-of-use rate plan, the kWh isn’t just a fixed value; it ebbs and flows based on the time of day and year.

Your Solar Advantage: Breaking Down the Numbers

For homes tapping into Phoenix’s sunlight when compared to APS’ 4pm to 7pm time of use plan:

  • 63% of energy is generated during off-peak hours
  • 14% during super off-peak hours in winter
  • 23% during on-peak hours

Given the varied rates APS offers, this energy generation can translate into tangible savings or costs. For instance, during summer months, the cost difference between on-peak ($0.2978 per kWh) and off-peak ($0.10789 per kWh) is significant. Similarly, the winter months offer the advantage of a super off-peak rate at just $0.03166 per kWh.

How Does Your Solar System Stack Up?

A solar calculator tailored to these local parameters can be transformative. As a seller, inputting your home details and solar specifications will offer insights into:

  • Potential savings for the buyer
  • How your solar setup compares to market expectations
  • Whether your solar system adds value or poses a challenge to your sale

The Buyback Potential: An Added Edge

Here’s a bonus: homes that produce excess energy can benefit from APS’s buyback rates, which range from $0.08465 to $0.129 per kWh. A solar calculator will gauge your potential earnings from this buyback, emphasizing another layer of value to potential buyers.

A Powerful Selling Tool

In a market brimming with competition, knowledge is power. Understanding the kWh cost your solar system offers equips you with the data to showcase your home’s long-term financial and sustainable advantages. It’s not just about having solar panels; it’s about demonstrating their tangible benefits.

For potential buyers, the cost savings and sustainable living prospects can be compelling. By presenting them with clear, data-backed insights, you’re not merely selling a home; you’re selling a vision of eco-friendly, economically savvy living.

To Solar or Not to Solar?

In Phoenix, where the sun generously bestows its energy, a solar rooftop can either be a coveted asset or a debated liability. By leveraging a solar calculator, home sellers can decipher where they stand. The cost per kWh your system generates will either bolster your sale, positioning your property as a cutting-edge, eco-conscious haven, or pinpoint areas for improvement before listing.

Ensuring your home’s solar system is an asset rather than an Achilles’ heel is essential. Dive deep into the kWh dynamics, harness the power of a solar calculator, and illuminate the true value of your Phoenix home.

To find out your cost per kilowatt hour, input your information below:

[solar_calculator]

Using Your Cost per Kilowatt Hour

Using your number above, is it costing you more or saving you more:

  • during ON PEAK hours (from 4pm to 7pm)?
  • during OFF PEAK hours (7pm to 4pm)?
  • during SUPER OFF PEAK hours (10am to 3pm during winter months) kick in?
  • if you have to sell excess electricity back to APS?

Remember, even if you are receiving a check back from APS each month as a credit on your bill, what is the cost of it? If it costs you, for example, $0.15 to generate a kilowatt hour of electricity that you end up sending back to APS because you didn’t use it, what is your buyback rate? $0.08465 per kilowatt hour? That is a net loss of $0.065 for every kilowatt hour you send them. That doesn’t make a lot of sense.

On the other hand, if you own your system free and clear, none of this matters because the savings are there each month.

If you have questions on whether or not your solar will affect the sale of your home, give me a call at 480-888-1234 and let’s discuss it.

Does Solar Increase Your Home Value in Phoenix

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solar adds value to homes in Phoenix

Does Solar Add Value to a Home in Phoenix?

Solar home sales are increasing every month and now report for at least 8% of all of the home sales throughout the Phoenix area. With hundreds of solar homes selling each month, many solar home owners throughout the Phoenix area are wondering if solar adds to their property’s value.

Having been in the real estate industry for the last 29 years and focused on selling solar homes for over 12+ years now, the simple answer is yes, solar can raise your home value if you follow a few simple steps to make sure you get the most value out of your home when you sell it. With millions of dollars worth of solar transactions over that period, no two transactions are alike and no two homes are the same. I have found the one common denominator in all of these transactions is me, coming in with a lot of solar real estate experience, training on marketing and valuing solar homes, and insight on how to properly guide my solar home sellers to get the most value for their property.

How To Get Full Value For Your Solar Home

My track record has shown that I have had homes sell for more than the area non-solar homes and in the same amount or even less time. There are seven key steps as a solar Realtor that I take to make sure that the solar panels add value to the home.

7 Steps to Added Value for Solar Homes

  1. Research the make, model and efficiency of the solar equipment
  2. Analyze the true cost of energy production versus the aggregate amount of solar savings generated from the solar panels
  3. Have an independent third party certify the solar system (used for both sales marketing and the appraisal)
  4. Create a detailed broker price opinion of value based upon the home and its features in relation to non-solar home sales in the area
  5. Design solar specific marketing material to demonstrate and educate the buyer on the benefits and cost savings from the solar panels
  6. Require the buyer to hire a certified green appraiser that understands solar when having an appraisal done on the home
  7. Personally meeting the appraiser at the home during the appraisal to give them a detailed solar report that includes information about the solar system, energy production, cost off-sets and utility usage reports, form 820.06 Green and Energy Efficiency Addendum for the appraisal (filled out by an independent third party) and relevant comparable home sales data.

The key to getting full value for your solar panels is hiring the right solar real estate agent when you sell your home!

The average solar home in Phoenix only receives $1500 in extra value because sellers fail to take the right steps for max solar value.

In my experience, most sellers do not fully understand the benefits or function of their solar panels on their roof.  Now, imagine having home buyers come through their home that have had solar…and just telling them that it saves $100 a month (or whatever that figure may be). Who is guiding that seller and buyer to ensure that not only the buyer recognizes the value of the solar panels on the roof but also the third party professionals such as the home appraiser or mortgage lender that are basing financial calculations on the value of the solar home? You need an experienced and qualified solar real estate agent to guide you through the process. Otherwise, you are just a solar guinea pig training a real estate agent on the do’s and don’ts of how to sell a solar home.

With over tens of millions of solar real estate sold and millions more in regular real estate sold in the Phoenix area, I have helped many home owners realize higher equity returns on their solar with an average of $1.65 to $2.78 per watt, depending upon the size and age of the solar panels and inverter. No two solar homes are alike but I know I can help you too.

Give me a call at 480-888-1234 and let’s talk about getting the most value for your solar.

Phoenix Solar Homes: Navigating the Market – September 2023 Report

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Phoenix solar home sales statistics for September 2023

Sun-Kissed and Sustainable: The Solar Home Market in Phoenix, September 2023

Phoenix’s housing market, renowned for its resilient appeal, is experiencing a nuanced shift, especially in the realm of solar homes. In the bustling metropolis that basks under the generous Arizonian sun, the solar home sector has become a fascinating study of economic and environmental interplay. September 2023 weaves a tale that’s both bright and shadowed, revealing the dichotomies within the solar home market.

Median Prices for Solar Homes

The month witnessed the median price for solar homes slightly retracting to $469,500, subtly dimming from $470,000 in August. A closer look at the types of solar systems unveils a divergent tale: homes with owned solar systems sparkled at $565,000, while those with financed systems were priced at $449,950. Homes with leased systems experienced a dip to $420,000, whereas those with prepaid lease systems were pegged at $547,500. These disparities not only highlight distinct buyer tendencies but also signify deeper economic and policy influences percolating through the market.

In a realm where 452 solar homes found new owners, constituting 8.2% of the total resale volume, an intriguing scenario unfolded: sellers of solar homes garnered a stellar 100% of their asking prices, slightly outperforming non-solar homes which commanded 99%. The categorization of solar home sales revealed a close match between owned and leased systems, with a 52%-48% split respectively. Though solar homes lingered slightly longer on the market, with an average 58-day sale period compared to the 54-day average of all resale homes, the metrics underscore a compelling attraction towards sustainable living.

Year over Year Look

Delving into the history books, we observe a 7% YoY descent in solar homes’ median price, contrasting a mere 1% downturn for the broader market, which settled at $432,190. While the volume of solar homes traded contracted by 4% YoY, it’s pivotal to observe this in tandem with the overarching 15% YoY dip in total resale market volume.

Overall Real Estate Market

The wider lens on Phoenix’s market health reveals a landscape gently rippling with change. Inventory, though still tight, has risen by approximately 20% over two preceding months to hover slightly above 13,000 homes, correlating to a somewhat alleviated 2.42-month supply. Meanwhile, foreclosure rates remain trivial at 0.5%. However, the slow upward crawl of mortgage rates toward 8% casts a lengthening shadow on buyer sentiment and financial calculus, squeezing those nostalgically recalling the sub-5% era.

Phoenix’s solar homes thus present a luminous, albeit complex, narrative amidst fluctuating economic waves. The sustained appeal and valuations of such homes, especially those with owned systems, point toward an intrinsic valuation of sustainability among buyers. Yet, with mortgage rates rising and subtle contractions in volumes and pricing, the trajectory of this sunlit market sector invites meticulous observation and analysis.

Navigating through this intricately woven tale of economic variables and sustainability, future chapters in Phoenix’s solar home market saga will assuredly be both enlightening and pivotal, serving as a beacon for homeowners, investors, and policy-makers in aligning sustainability, affordability, and economic stability in the times to come.

You can download a PDF version of the Phoenix area solar home sales report at: https://www.phoenixhomebuying.com/wp-content/uploads/2023/10/Maricopa-Solar-Stats-Oct-2023.pdf

How A Mortgage Affects the Sale of a Solar Home in Phoenix

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mortgages and solar home sales

How a mortgage affects the sale of a home in Phoenix.

Owning a home adorned with shiny solar panels in sunny Phoenix is an exciting prospect. But, hey, we get it! The financial side, especially understanding mortgages and loans, can be a bit tricky. Let’s explore, in straightforward terms, how different loan options work for purchasing a solar home in the Phoenix area.

Conventional Loans: Your Everyday Mortgage

These are your standard loans, often used by many. They’re guided by rules set by Fannie Mae or Freddie Mac, which are entities that buy and package mortgages. Fun fact: You can snag a conventional loan by putting down as little as 3% and choose between a 15 or 30-year payoff plan.  Additionally, solar lease payments are not added to your qualifying ratios (though a solar loan payment would be added unfortunately).

When it comes to homes with solar panels, there’s a special form (the “Residential and Green Energy Efficient Addendum”) that appraisers use if the solar system is owned and not leased. A tiny hiccup to keep in mind: if you purchased solar panels under the PACE program (specific to California), Fannie Mae won’t back the loan. But since we’re in Arizona, no worries there!

FHA Loans: Friendly and Adaptable

FHA loans are known for being user-friendly with flexible rules. The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), ensures these loans. They’re renowned for their lower down payments and more lenient guidelines.

When solar comes into play, FHA has cool specifics. They allow mortgage amounts to go beyond 20% of the max allowable FHA home loan if that excess is used to install a solar system. Plus, with an FHA Energy Efficient Mortgage (EEM), you can finance up to $10,000 for energy improvements (like solar panels) with as little as 3.5% down.

Another neat offer from FHA is the Title I loan, providing funds for energy improvements even if you’ve not much equity in your home. Although rarely used for initial home purchases, it can be a boon for existing homeowners in Phoenix wishing to shift to solar without leasing.

VA Loans: A Salute to Service

Here’s a shoutout to our military veterans! VA loans are tailor-made for you, requiring no money down and are, in general, a fantastic deal.

When we bring solar into the picture, VA has specific guidelines, notably in VA Pamphlet 26-7, regarding how solar systems are valued and qualified. Similar to other loan types, if the solar system is a permanent part of the home and not leased or financed, it adds value.

VA also has an energy-efficient mortgage, but it’s worth noting that it’s not commonly offered by most lenders in Phoenix.

In a Sunbeam: The Link of Loans and Solar

Regardless of the loan type, Phoenix has proved to be a sun-drenched paradise for solar homes. However, diving into the financial aspect, particularly loans, requires a little light to be shed on the intricate details.

Through the lens of conventional, FHA, and VA loans, potential solar homeowners can navigate the sea of financial jargon and lay the foundation for their luminous abode in the vibrant heart of Arizona.

The takeaway? While each loan type has its unique shades, the underlining fact remains that turning your home into a beacon of sustainability with solar is certainly plausible. And with the right financial route, you can bask in the glow of both the sun and smart, future-proof investment in a solar home in Phoenix.

Top 10 Questions Your Agent Should Ask Before Listing Your Phoenix Solar Home

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top questions to ask when selling a solar home

When listing your solar home for sale in the Phoenix area, there are questions that a pro-active real estate agent will ask you regarding your solar lease. While basic and necessary in nature, the information that you provide will become the basis of some of the contract terms and marketing used in the sale of your solar home. If your real estate agent fails to ask these questions, you should ask yourself if you have truly hired the best person to ensure a smooth and quick sale of your solar home.

1) Can you provide me full copies of the most recent version of your lease, including any addenda and other paperwork related to the solar lease?

Agents will ask for this since the solar lease assumption addendum that will become part of your sales contract requires the seller to disclose the terms and conditions of the lease. Your lease should answer questions such as: How many more years are left on the lease? What is the monthly payment? Are there any warranties or production guarantees included in the lease? Is there an escalation clause and how does that affect the monthly lease payment? It is important that your real estate agent knows those terms and conditions upfront.

2) What type of equipment was used in your solar system including 1) the size, number, type, age and manufacturer of your panels, 2) the size, number, type, age, and manufacturer of your inverter, 3) any additional add-on equipment such as a battery backup system?

Not all equipment is manufactured the same and for the savvy real estate agent, he or she knows that higher performing equipment can be a marketing advantage for the seller. Furthermore, it is important to know if equipment has been replaced or may be nearing the end of the life expectancy of that particular part of the solar system.

3) Has any of the equipment failed and or been replaced since the system was installed? Who maintains the panels? Who insures the panels?

While most of these answers should be in the lease documentation, there are situations where the home owner is responsible for the maintenance, warranty, and liability of the panels. Knowing that there has been a problem with the second inverter, for example, is critical data that a seller will need to disclose to a home buyer.

4) What is the size of your solar system in kilowatts (kW)? How many kilowatt hours (kWh) does it produce per month? Per year?

Knowing the size and production of your solar system will help determine how much the solar system offsets your electrical needs and potentially the needs of the new home buyer. Do you offset 100% of your total electricity? Offset only on-peak demand? Is it a tiny system on a large house that has little impact on the electrical demand of the home owner or was it sized way beyond the needed demand of most normal home owners?

5) Can you provide at least 12 months worth of recent utility bills since you have had solar?

Most agents ask this question to show what the average bill is over the year but a good agent should be able to estimate your total electrical usage (utility and solar consumption) and how the solar impacts the home during the summer, on peak, off peak, and throughout the year. While it is nice to know that there are low utility payments each month or that the utility company provides a substantial credit to the electric account at the end of the year, knowing how the full benefits produced by the solar and the various impacts that it has on utility costs are crucial in the marketing of the solar benefits of the home. Most importantly, the real estate agent needs to know what rate plan you are currently on and if have net metering on your account.

6) Based upon the utility bill data, are you grandfathered in at that rate plan?

With utility rates always in flux and changing, knowing that a particular home is locked in on a lower rate plan can help the real estate agent prepare marketing on the home that shows how much more a person will save based upon the lower rate plans than current options with or without solar. There are instances in the Phoenix area, for example, where home owners have been grandfathered in a 20+ year old rate plans for the next 20 years.

7) Do you have the contact name and number of the transfer team at the solar leasing company?

Basic question that needs to be asked right away. A good agent will contact the solar leasing company before a buyer is found to make sure that they have the needed transfer documents in place and are versed in that particular company’s solar transfer process.

8) Is there a transfer fee? What criteria does a buyer need to meet in order to qualify for the lease?

While most lease transfers do not cost, there are a few companies that charge either the buyer or seller fees to transfer the lease from one to the other. Who pays? When is payment due? Additionally, buyers may need to meet certain income and or credit criteria to be eligible for the solar lease. Are there options where these qualifying guidelines can be waived? Will you be charged additional fees to waive qualifying guidelines?

9) Is there a buyout of the solar lease? If so, when? How much?

An agent should know their options if they are to help the seller negotiate the best possible price and terms for their client. While there may not be buyout options in the lease, there could be other clauses that allows the home owner to lock a payment or remove an escalation clause.

10) Do you have a UCC-1 filing against your home?

While a UCC filing is not a lien against your home, most lenders will require that the UCC filing be removed from title prior to the closing of the home. Most solar companies, however, will require that there be a UCC filing placed against the property to protect their solar equipment. These filings can take days if not weeks to remove and it is important to start working on its release as soon as possible.

Selling Your Solar Home in Arizona

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Turn solar into sold

Shining a Light on the Myths About Solar Homes

You’ve heard it often – real estate agents whispering that solar panels make selling a home in Arizona trickier and slower. But hold on a minute, is there any truth to that? Well, not really! It turns out, many of these agents might not fully understand how to showcase the fabulous pluses of a solar home to possible buyers. So, why are some Phoenix solar home owners choosing these agents, who see their energy-saving solar setup more like a hurdle than a selling point?

Tackling the Why and How of Solar Benefits

Here’s the scoop – the agents might not know how to talk about solar homes in a way that gets people excited. Maybe they don’t quite get how solar technology works or perhaps they don’t realize all the cool perks you’ve gotten from your solar system since you installed it.

Experience Talks: Shaping a Pro-Solar Selling Strategy

In the 30+ years of working in real estate, with a good 12 years zeroing in on selling solar homes in the Phoenix area, there’s been a lot of learning and understanding about how to do it right! After seeing what works (and what doesn’t!), I have crafted a 7-Step plan to make sure your solar home gets the top-notch value it truly deserves.

Stepping Up the Solar Game: Empowering Buyers and Agents

With a specialty in solar and knowing all the ins and outs of energy efficiency, it’s clear that many buyers are being led by agents who might not be able to tell them about the awesome benefits and advantages of going solar. This 7-Step plan swoops in to fix that, educating both the buyer and the real estate agent and showing how your solar setup will save them bucks on their electric bills each month.

Picking the Right Guide: Don’t Settle for Less!

Want to know the secret sauce to selling your solar home in Arizona? Get the right solar real estate agent on your team BEFORE you put your home on the market! Even though loads of people manage to pass the real estate exam in Phoenix, not all of them know the special details of selling a solar home. Don’t let your home be a practice round for an agent who’s still figuring things out!

Avoiding Pitfalls: Navigate the Sale with Confidence

Choosing an agent without experience in solar homes could mean stumbling into unnecessary mistakes and waits while they try to learn on the job. Your home, and indeed your wallet, deserve better than being a learning experience for someone else!

Championing Solar Sales with Certified Expertise

As a certified EcoBroker and GREEN Realtor, plus being certified in energy auditing from the Building Performance Institute (BPI), there’s a lot of know-how in selling homes that have all sorts of solar setups, whether leased or owned. And the goal is to use all that expertise to help you!

Let’s Illuminate Your Path to a Successful Sale Together!

Ready to talk about how to get your solar home sold in a way that truly values its worth? Dial 480-888-1234, and let’s chat about putting your solar home in the spotlight, ensuring it attracts buyers who will appreciate its true value!

Tesla / SolarCity Solar Lease Transfers for Phoenix Solar Homes

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Tesla / SolarCity lease transfer in Phoenix

Harnessing the Sun, Powering the Sale: Your Comprehensive Guide to Transferring a Tesla / SolarCity Solar Lease in Phoenix

Phoenix, AZ, radiates not just with its vibrant desert landscape but also as a hub where homes are empowered by the brilliance of the sun, thanks to solar systems like those provided by Tesla / SolarCity. As a Phoenix homeowner, if you’re considering selling your abode and it’s powered by Tesla / SolarCity’s solar products, you may wonder how to smoothly transfer your solar lease to the new owners. Ensuring a seamless transfer will not only uphold your obligations as a seller but also showcase your transparency and responsibility.

Understanding Tesla / SolarCity’s Solar Lease

Tesla / SolarCity’s solar lease, particularly popular in sunny locales like Phoenix, is an arrangement where you, the homeowner, lease the solar system from Tesla / SolarCity, reaping the benefits of the generated energy while paying a fixed monthly fee. When you decide to sell your home, it’s crucial to navigate the lease transfer process adeptly to ensure a smooth transition for both you and the buyer. Below is your straightforward guide to illuminate every step of this journey.

Part 1: Initiating the Transfer Process

It’s pivotal to kickstart the transfer process as soon as you enter a contract with a buyer (if not before but an experienced solar Realtor will have already advised that). As the system owner, you hold the key to initiate the contract reassignment process. Let’s distill the primary steps:

  • Sign in to Your Tesla / SolarCity Account: Navigate to the energy product you are transferring.
  • Transfer System Ownership: Within the ‘Transferring Your System’ section, select ‘Transfer system ownership,’ entering crucial details like the transfer type, status, assuming party, and escrow details.
  • Comprehensive Communication: Engage openly with the buyer to ensure they comprehend their new obligations under the solar agreement and to answer any questions they might have. Most likely you should have had the buyer sign a solar lease/loan addendum as part of the purchase contract that will contractually obligate them to this process.

Part 2: Ensuring Legal and Financial Compliance

The ownership transfer isn’t merely a physical handover; it involves due diligence in handling the financial and legal aspects:

  • Addressing the UCC-1 Financing Statement: Though not a lien, a UCC-1 financing statement indicates Tesla / SolarCity’s ownership of the solar system. For financing purposes, this may need to be temporarily released or subordinated, necessitating a $150 document processing fee paid by the seller.
  • Handle Final Invoicing: You’ll receive a final invoice within two billing cycles post-Close of Escrow on the home, covering energy produced (for PPAs) or monthly lease payments through Close of Escrow.

Part 3: Navigating Diverse Contract Types

Tesla / SolarCity offers various financing options, and each carries a unique protocol during home sales:

  • Cash Purchases: Directly contact Tesla / SolarCity’s Customer Support team.
  • Third-Party Loans (e.g., Mosaic, Sunlight): Engage with your loan provider to transfer the contract, contacting Tesla / SolarCity post-home sale.
  • Tesla / SolarCity Loans: Connect with the Tesla / SolarCity Finance team at 844-837-5285, selecting option 2.

Part 4: Bridging to the New Homeowner

Post-transaction, the responsibility to inform Tesla / SolarCity about the closure falls upon you, ensuring all systems update to reflect the new owner under the solar agreement. The new owner simply continues where you left off—no restarting of terms, ensuring a seamless transition and consistent solar service.

Part 5: Available Assistance

Tesla / SolarCity’s specialized Property & Title team, laden with real estate expertise, stands ready to assist both sellers and buyers. Once they receive authorization from the initial contract holder, they can share detailed solar agreement information and address queries, ensuring every party is well-informed.

Contacting Property & Title

  • Online Requests: www.tesla.com/realestate
  • Phone Number: 1 (877) 650-7652

A Spotlight on Responsibility

By ensuring a thorough and transparent transfer process, you not only uphold your obligations but also shine a light on responsibility, fostering a trusting relationship with the buyer and ensuring the continued utilization of sustainable solar energy in Phoenix homes.

Commonly Asked Questions:

What can I do with my Tesla / SolarCity solar system agreement if I’m selling my house in Phoenix?

You’ve got a couple of options:

If Tesla / SolarCity owns the system, you can usually transfer your agreement to the person buying your home. They’ll continue where you left off. If you want to check other choices, look at your contract on your Tesla account.

If you own the system, no need to transfer the contract if you bought your panels with cash or used another financier. The warranties stay with the system. Once you sell, tell the Property & Title team at Tesla / SolarCity, so they can update your account.

How do I move the Tesla / SolarCity solar agreement to the new homeowner in Phoenix?

Here’s a simple path if Tesla / SolarCity owns the system:

  • Tell Tesla / SolarCity early: Let the Property & Title team know as soon as you decide to sell.
  • Be clear with buyers: Make sure anyone looking to buy knows about the solar system and its agreement.
  • Inform Tesla / SolarCity about the buyer: Once you have a buyer, make sure they chat with the Property & Title team too.
  • Easy paperwork: Tesla / SolarCity will give you an online form to sign. It’s easy and digital!
  • Make it official: After the home sale is done, Tesla / SolarCity will put the new owner’s name on the account.

If you own the system, no need for paperwork. Just share the new deed with the Property & Title team, and they’ll update the account.

Can my renter in Phoenix take over the solar contract with Tesla / SolarCity?

You can let anyone, like your renter, have access to the account, but the homeowner’s name must stay on the contract. But be careful, because your renter will see personal info like billing details. It might be better to keep the bill in your name and have your renter pay you back.

Does the buyer need to qualify to take over the solar agreement in Phoenix?

If Tesla / SolarCity doesn’t own the system or it’s been fully prepaid, no worries about qualifying. If there’s a monthly payment to Tesla / SolarCity, the buyer can qualify by:

  1. Meeting Tesla / SolarCity’s credit standards.
  2. Buying the home with cash.
  3. If those two don’t work, they can pay a $250 credit fee.

Anything I should think about with the Tesla / SolarCity solar system before accepting an offer on my Phoenix home?

  • If Tesla / SolarCity owns it, make sure potential buyers and your real estate agent know about the solar agreement. You might want to make the transfer of the solar agreement a condition of the sale. Also, think about the buyer’s financier and if they’re okay with a home that has a solar agreement.
  • If you own the system, simply let the Property & Title team at Tesla / SolarCity know and provide the new deed when your home is sold.

Can my Tesla / SolarCity panels’ value be part of my Phoenix home’s price?

If you own the solar system, yes, it can be part of the home’s appraised value. If you don’t own it, it usually isn’t included in the property’s value.

Final Thoughts

As you journey from the contemplation of selling your home to handing the keys to the new owner, knowing that you have responsibly transferred your Tesla / SolarCity solar lease not only amplifies your credibility but also perpetuates a chain of sustainability in the heart of Phoenix. May every sunrise in your new abode bring you as much energy and brightness as your previous Tesla / SolarCity-powered home!

Do Cloudy Days Affect My Solar Panels?

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Do cloudy days affect solar panels in Phoenix?

The Prolific Sunlight of Phoenix and Its Significance

With a glowing nickname like the Valley of the Sun, Phoenix proudly basks in a whopping 300+ days of sunshine annually, providing a seemingly ideal environment for solar energy production. The geographical position of the city, coupled with the scant annual rainfall of around 7 inches, constructs a narrative where the deployment of solar panels seems not just logical but eminently sensible. Yet, as invariably as the desert experiences its rare rainy days, questions loom regarding the impact of cloudy weather on the efficacy of solar panels. Does the sparse yet existing cloud cover in Phoenix affect the solar energy generation? Let’s delve into the cloud-solar panel dynamic.

The Intermittent Cloud Cover: An Obstacle or a Minor Hurdle?

One cannot ignore the few but pertinent days of rain and clouds in Phoenix, often seen during events like the Phoenix Open in late January and sporadically throughout the diminishing summer monsoon season. The immediate effect of cloudy weather on solar panel performance has been widely acknowledged: a reduced output. But to what extent does this fluctuation matter in a region so predominantly sunny?

During cloudy days, solar panels might produce only 10-25% of their rated capacity, contingent upon factors like cloud density and panel type. Panels with a capacity to absorb a wider spectrum of sunlight, such as SunPower solar cells, tend to fare better under diffuse light conditions, thereby mitigating some loss during overcast days.

Beyond Visible Light: Capitalizing on the Invisible Spectrum

Even amidst the enveloping clouds, ultraviolet (UV) light persistently pierces through, reaching the earth’s surface in substantial amounts. This phenomenon is commonly evidenced by unwitting sunbathers becoming unexpectedly sunburned on an overcast day at the beach. The capacity to harness UV light to generate electricity is a developing area in photovoltaic technology, with prototypes under rigorous testing, though not commercially available as of yet.

The utilization of UV light, alongside other innovative advancements in solar technology, promises to further minimize the cloud-induced dips in solar energy production, thereby bolstering the reliability of solar energy systems even in less-than-ideal weather conditions.

Weighing Annual Sunlight Against Intermittent Clouds

It’s paramount to adopt a holistic perspective when evaluating the efficacy and return on investment (ROI) of solar panels in a region. The intermittent cloud cover experienced in Phoenix indeed diminishes solar output temporarily, yet the cumulative, annual solar yield substantially overshadows these brief lulls.

Utilizing data from numerous sunny days and comparing it with the short spells of reduced output during cloudy days provides a comprehensive view of the energy production capabilities. For the prospective solar panel owner, this assures that the occasional cloud cover does not significantly impact the ROI of their solar setup in the long-term analysis.

The Path Forward: Continuous Innovations in Solar Technology

As the solar industry propels forward, continuous innovations aim at mitigating the impact of environmental variables like cloud cover. The development of bifacial solar panels, which can harvest sunlight from both front and rear sides, and the advent of solar trackers, which orient the panels towards the sun throughout the day, are prime examples of innovations designed to maximize energy capture, even under suboptimal conditions.

Additionally, incorporating energy storage solutions, like solar batteries, to store excess energy produced during the numerous sun-drenched days ensures a stable, continuous power supply even when cloud cover lowers production levels.

Concluding Thoughts: A Sunny Forecast for Solar in Phoenix

In conclusion, while the cloud cover in Phoenix may temporarily and marginally impact solar energy production, the overwhelmingly predominant sunny days unequivocally fortify the city’s status as a lucrative hub for solar energy utilization. With technological advancements progressively minimizing weather-induced impacts and enhancing energy storage capabilities, the occasional clouds do little to overshadow the bright future of solar energy in Phoenix.

Top 10 Tips to Selling a Solar Home in Arizona

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top 10 list solar home selling

You may think that selling a home with solar is the same as selling any house in the Phoenix area, but solar adds a unique dimension to the selling process.  As the home seller with a solar array on your home, whether you own the solar outright or are leasing the solar system, there are several tasks you should complete before putting the “for sale” sign in your front yard.

While many of the suggestions are fairly simple and straight-forward advice that I would share with anyone selling a home in the Phoenix area, some items are unique to the solar home selling process and can play a crucial role in ensuring that you receive the best offer in the shortest amount of market time possible.

Top 10 Tips When Selling a Home with Solar in Arizona

  1. Gather together all of your solar documentation.  Solar documentation includes leases, solar loan documents, net metering agreements, sales brochures, system information, and any other documentation you received when you installed solar on your home or signed in connection with solar on your home.  It is important to contact the solar company to verify their procedures to transfer the solar lease/loan to the new buyer while your solar system information is helpful in preparing marketing materials and providing the home’s appraiser with detailed system information in order to maximize the system’s added value to the home.
  2. Gather together all of your energy bills.  A crucial part of marketing a home with solar is to explicitly show potential buyers the beneficial savings you have enjoyed since installing solar on your home.  Besides having at least a 12 month history of utility bills since you have had solar (in order to demonstrate to the buyer how well the system works throughout the year), it is important to have at least a 12 month history of utility bills before you had solar installed on the home in order to compare and contrast how well the solar system has saved you money.
  3. De-clutter.  Get rid of the piles of magazines that you no longer read and take down all of the personal mementos that are potential distractions to the hoards of home buyers that will be viewing your home.  Remove excessive furniture in rooms to make them feel more open and spacious.  Clear out closets and put items that you don’t need into storage.
  4. Clean the home thoroughly.  It is one thing to live in a home and another to sell it.  Your home has to be show-ready at any possible moment and giving your home a deep cleaning will help make a good first impression on buyers visiting the home.
  5. Focus on curb appeal.  What is the buyer’s first impression when the pull up to the home?  Does the look shabby and run down with weeds growing in the rocks?  Is it clean and well maintained?  What impressions with that buyer begin forming as they walk up to the front door?
  6. Fix it.  As I stated before, it is one thing to live in a home and another to sell it.  Do you have leaky faucets that you have overlooked for years?  Do you have doors that stick or wall paper beginning to peel in the bathrooms?  As buyers walk through your home, each one of these faults that you have grown to live with will become reasons for buyers to knock down your price or move on to other homes because the home requires too much work.  Don’t give a buyer a reason to walk away and the bigger the problem, the bigger of an issue it will be for a buyer, especially if the ceiling has water stains, an appliance doesn’t work, or if a window is boarded up because it is cracked.
  7. Don’t overlook the other primary variables that a buyer will want from a home.  Unfortunately solar is not a primary search variable for home buyers in the Phoenix area, rather, it is a secondary search feature.  Buyers tend to focus on price, location and neighborhood, size of the home, schools, and the flow of the home to make the initial determination to visit a home.  Solar, along with other factors such as parking, storage, pool, and other features and amenities in a home, become additional features that will differentiate your home from the rest of the competition.  Be sure to emphasize other factors that will help a buyer in their decision process including other features, amenities, upgrades, and perks that your home has to offer.
  8. Price it effectively.  Price is one of the top three variables that will determine if a buyer even visits your home (location and size are the other two).  Price it according to the market, not what you feel it is worth.  In previous years, there have been times when pricing above market were realistic while during the market downturn, prices were falling like bricks just to attract a buyer through the home.
  9. Have an effective marketing plan.  While there are many similarities to selling a home with solar to the average, run-of-the-mill home in the neighborhood, there should be an additional level of marketing the solar benefits of the home.  Failure to illustrate the benefits of solar can result in longer marketing times and lower offer prices by buyers.

  10. Call the Solar Home Broker at 480-888-1234.

What Happens to your Solar Payments After a Foreclosure?

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solar and foreclosures in Phoenix

Navigating Tough Times: What Happens to Your Solar Lease or Loan if You Face Home Foreclosure

In recent conversations about real estate, a noticeable shift has occurred from discussing a thriving market to tackling topics like short sales, foreclosures, and a dip in market activity. In Phoenix, the last three weeks alone have witnessed a nearly 40% surge in real estate inventory, while sales have begun to decelerate. While current inventory levels still sit below those of early 2019, the impact of economic shutdowns promises to usher in tangible negative effects.

A rising question among solar homeowners revolves around managing solar lease or loan payments amid financial difficulties. Can solar companies provide a payment plan, forbearance, or even debt forgiveness? And crucially, will it negatively affect your credit score?

The financial crisis of 2008 did not present the additional layer of managing solar lease/loan payments during home loan discussions. We find ourselves navigating unfamiliar territories, with many solar companies still formulating a plan. Bearing that in mind, here are several pivotal points to recall:

  1. Solar Leases Amidst Foreclosure: Solar leases typically will supersede a foreclosure. If you were to lose your home to foreclosure, there is a good chance that the new owner will still be responsible for the debt (though I must emphasize that you may still owe on it as well).
  2. The Persistence of Solar Loans: Solar loans, usually personal loans, can trail you even after the home’s title has transferred, unless the new owner properly assumes the loan.
  3. Help from Loan and Lease Companies: While loan and lease companies exhibit a willingness to assist, it is often on a case-by-case basis. If you worry about making a lease payment, connect with your servicing company immediately to devise a plan, whether it involves delayed payments or payment forbearance.

Even with a payment forbearance, where solar companies allow payment pauses, queries arise: When will you need to repay those missed payments? Will those missed payments damage your credit score? Will it increase your future payments? Understand your options and make sure to ask questions!

Solar Leases and Financial Strain

Delving into the first scenario, when a homeowner with a solar lease faces foreclosure, solar leases often take precedence. This means even after a home’s loss, the lease’s financial obligations might transition to the new owner. However, this pathway is not straightforward and might still result in ongoing financial obligations for the original homeowner. This complexity necessitates clarity regarding contractual terms and possibly local regulations.

Paying Solar Loans after Losing Your Home

In the second scenario, solar loans, often treated as personal loans, may follow a former homeowner even after they no longer own the property, unless the new owner formally and appropriately assumes the loan. This situation could spawn complex and potentially litigious scenarios, especially without clear resolution, pathways or established precedents.

Loan and Lease Companies Willing to Assist

A glimmer of hope emerges from the willingness of some loan and lease companies to assist, although it’s often on an individual basis. Immediate communication with your service provider, if payment difficulties are anticipated, might pave the way to solutions like delayed payments or payment forbearance. However, while these solutions offer immediate relief, they spawn additional questions and potential future hurdles.

Effects on Credit Score

Addressing the credit score, foreclosures and missed payments significantly impact credit scores and can influence one’s financial standing for years. For solar homeowners, this impact might be twofold, with both the mortgage and solar loan or lease reflecting negatively on their credit report. Understanding the long-term and depth of this impact and potentially seeking professional guidance may be pivotal.

Exploring Alternatives

Moreover, exploring foreclosure alternatives, particularly for solar homeowners, is essential. Options like loan modifications, refinancing, or even selling before foreclosure are pathways that could potentially minimize financial damage and somewhat protect credit scores.

Here to Help

In this complex financial and legal web, especially for solar homeowners navigating through these challenging times, immediate and transparent communication with loan or lease providers, understanding your contractual obligations, exploring all available options, and perhaps most critically, seeking expert advice could be the keys to managing these challenges as smoothly as possible.

If you’re wrestling with these challenges and seeking guidance, feel free to reach out directly at 480-888-1234 to discuss your options. The path may be uncharted, but you don’t have to walk it alone.