phoenix solar homes

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.

Transferring a Mosaic Solar Loan When Selling Your Phoenix, AZ Solar Home: A Comprehensive Guide

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Mosaic Solar Loan Transfer Process Phoenix AZ

Transferring a Mosaic Solar Loan When Selling Your Phoenix, AZ Solar Home

Selling a home in Phoenix, AZ can often be a multi-layered process. Between showing appointments, aiming for a profitable sale, managing home improvements, and navigating the emotional roller coaster of moving, the last thing you’d expect is a hitch from your buyer’s mortgage lender due to misunderstandings about your solar loan. For Phoenix solar homeowners, this issue is not rare. Fortunately, a little knowledge can effortlessly resolve this misunderstanding and pave the way for a successful home sale.

Understanding Liens on Your Solar Assets vs. Home

A lien signifies a lender’s legal claim over an asset, which can be used if a borrower fails to make payments or attempts to sell the asset before full payment. For instance, while a mortgage lender may have a lien on your Phoenix residence, solar loan companies like Mosaic have a claim on your solar equipment – encompassing solar panels, wiring, inverters, and potential battery systems.

For Phoenix homeowners wanting to sell, this solar lien presents two paths. First, the incoming homebuyer can assume both the loan and its associated lien, provided they qualify. Alternatively, as the seller, you could payoff the loan balance, possibly using your home sale’s proceeds. Given the increased value solar panels bring to homes, using this added value to clear the solar loan often emerges as the most straightforward option.

Steps for a Seamless Solar Home Sale in Phoenix, AZ

Preparation remains key. Awareness of your UCC-1 Filing and solar loan agreement plays a pivotal role in ensuring a smooth home sale experience in Phoenix. It saves all parties from undue stress and potential hitches.

When presenting your solar-powered home, it’s crucial to educate potential buyers about the solar installation and its associated benefits. If you wish to get the best price premium for your solar setup, consider collaborating with a local real estate expert, like Rob Madden of Green Leaf Realty, who is well-versed in Phoenix’s solar home landscape.

Factors That Shape the Sale of Solar Homes in Phoenix, AZ

Solar installations undoubtedly enhance a home’s value due to the long-term savings they offer. On average, Mosaic customers enjoy a whopping $30,000 savings on electricity bills over their solar panels’ lifespan.

However, how do you convincingly convey the value of these future savings to prospective buyers?

  1. Equipment Details: High-efficiency solar panels from reputed manufacturers tend to fetch higher prices.
  2. Generation & Savings Data: Highlighting your installation’s monthly electricity generation and bill savings can be influential. Also, mentioning your net metering status, especially in regions where it’s significant, is beneficial.
  3. Warranty Information: Potential buyers will be keen on understanding the warranty status of your solar panels. Ensure clarity on its duration and transferability.
  4. Financing Insights: For those who chose solar financing, understanding the loan or lease transfer process is paramount. Familiarize yourself with any prepayment penalties and other terms. Mosaic, for instance, imposes no such penalties.

For Phoenix solar homeowners aiming to sell, two options lie ahead:

  1. Offset the solar loan with the value increment that a clear solar system offers.
  2. Allow the home buyer to take over the Mosaic solar loan.

Benefits of Paying Off the Loan:

  • Higher home valuation
  • Quicker sales process
  • Simpler transaction with fewer steps
  • Buyer’s convenience as they avoid additional Mosaic payments

To successfully transfer a Mosaic loan:

  1. As the seller, give written consent to Mosaic in order to share loan details with the potential buyer.
  2. Mosaic will then share the current solar loan’s terms with the buyer.
  3. The buyer proceeds to apply for credit qualification for the solar loan.
  4. Upon credit approval, both seller and buyer sign the loan transfer agreement.
  5. Mosaic reviews this agreement and issues a UCC-1 termination agreement to be shared with the title/escrow officer.
  6. Post-closing, Mosaic transfers the loan into the buyer’s name upon receiving title transfer confirmation.

For any queries, Mosaic loan operations can be reached at 855-746-5551 or via email at loanservicing@joinmosaic.com or support@joinmosaic.com.

In summary, Phoenix solar homeowners can ensure a hassle-free home sale by being informed and prepared, making the transfer of their Mosaic solar loan a breeze.

Selling Solar Homes in Phoenix, AZ: Guide to LoanPal Solar Loan Transfer

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LoanPal solar loan transfer Phoenix AZ

Selling Your Solar Home in Phoenix, AZ: LoanPal Solar Loan Transfer Simplified

Phoenix, AZ is known for its sunny skies, making solar homes not just a trend but a wise investment in sustainable living. If you have a LoanPal solar loan on your home and are thinking of selling, here’s a concise guide to ensure a smooth transition.

Navigating the Sale of Your Phoenix Home with a LoanPal Solar Loan

When selling your Phoenix solar home, you have two options regarding your LoanPal loan:

  1. Loan Payoff: Most homeowners choose to pay off their LoanPal loan from their home sale proceeds.
  2. Loan Transfer: A prospective buyer can take on the LoanPal loan if they’re interested and meet the qualifications.

Let’s delve into the loan transfer process.

Step-by-Step Guide to Transfer Your LoanPal Solar Loan:

  1. Communication: Inform LoanPal about your intent to sell.
  2. Contractual Agreement: Ensure the property purchase agreement states the loan transfer as a sale condition.
  3. Initiating Loan Transfer: The potential buyer contacts LoanPal to kickstart the loan transfer process.
  4. Approval: The buyer’s creditworthiness determines the loan application’s approval.
  5. UCC-1 Removal: Lift the UCC-1 filing related to the solar equipment before finalizing the sale.
  6. Finalize the Sale: All parties involved conclude the sale.
  7. Transition: The buyer assumes the home and continues solar loan payments, enjoying sustainable energy benefits.

For sellers, it’s crucial to understand the Solar Loan Agreement, make necessary disclosures, and maintain open communication with the buyer.

Checklist for Sellers:

  • Loan Agreement: Ensure the buyer is informed about the Solar Loan Agreement’s rates and terms.
  • Outstanding Payments: Any pending payments should be disclosed to the buyer.
  • Solar Form of Intent: Fill out, sign, and hand this form to the buyer.

Important Note: Ensure all payments and interest are settled 5-7 business days before the Close Escrow Date. An additional payment might sometimes be necessary to offer the buyer a 30-day buffer from the escrow’s closure before their initial payment.

For Aspiring Phoenix Home Buyers: Navigating Your Solar Loan Transition

  • Stepping into the world of solar homes in Phoenix, AZ is not only an environmentally-conscious choice but also a sound investment. When buying a solar home, especially one that is backed by a LoanPal (now known as GoodLeap) solar loan, there’s a specific set of actions to ensure a seamless transition.
  • Begin by procuring and thoroughly reviewing the Solar Loan Agreement. This document provides an in-depth look at what you’re committing to. Once you’ve familiarized yourself, proceed to complete every section of the LoanPal solar loan application diligently.
  • Expressing your commitment is pivotal; the Form of Intent serves as a promise note to the seller, indicating your keen interest in taking over the solar loan. However, it’s essential to wait for LoanPal’s green light, ensuring you meet all their requirements.
  • While the loan aspects are critical, understanding the origins and warranties of your future solar equipment is equally significant. Engage with the seller to learn about the solar installer and then reach out to the installer to confirm the transfer of all applicable warranties post-loan acquisition. Additionally, loop in your insurance agent to ensure the solar panels on your soon-to-be home are adequately covered.
  • Lastly, transparency and communication with LoanPal can expedite the process. Share essential documents like the Real Estate Purchase Agreement, Closing Statement, Loan Estimate on the new mortgage, and your recent paystubs as income evidence. With these steps, you’ll be better equipped to make your solar home purchase in Phoenix a resounding success!

The UCC-1 Financing Statement Explained

It’s essential to clarify the UCC-1 Financing Statement. Contrary to common belief, it’s not a lien against your home. With a LoanPal solar loan, a UCC-1 is filed as a lien on the solar equipment, not your home. It ensures LoanPal’s (now known as GoodLeap) rights as the financier of your solar system, protecting against third-party claims. For any concerns, reach out to LoanPal at solarinfo@goodleap.com.

Both parties must recognize that LoanPal (now GoodLeap) isn’t in charge of the home sale or closing timeline but merely aids the loan procedure. The loan transfer only completes once the buyer gets credit-approved. If they can’t take on the loan, it must be settled in full.

In conclusion, with LoanPal, now operating as GoodLeap, selling your solar home in Phoenix, AZ becomes a breeze. Their transparent and flexible solar loan solutions ensure a seamless home sale experience while still capitalizing on Arizona’s plentiful sunshine. If more information is needed, reach out directly. With this step-by-step guide, your transition will be effortless!

Transferring Your Goodleap Solar Loan When Selling in Phoenix, AZ

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Goodleap solar loan transfer

Navigating Solar Loan Transfers with GoodLeap in Phoenix, AZ: A Comprehensive Guide

In the sun-drenched landscape of Phoenix, AZ, solar homes are more than just a trend; they’re an investment in sustainable living. If you’ve got a solar loan with GoodLeap and are considering selling your home, understanding the intricacies of the loan transfer process can be pivotal. In this guide, we’ll shed light on the GoodLeap solar loan dynamics and how it impacts home sales in Phoenix.

Understanding the UCC-1 Financing Statement

First, let’s demystify a term that often stirs confusion: the UCC-1 Financing Statement. Many homeowners fear that this is a lien against their homes, but that’s not the case. When you secure a Solar Loan with GoodLeap, a UCC-1 is filed as a lien on the solar equipment itself, not your property. This UCC-1 filing is a means to protect GoodLeap’s rights as your solar system’s financier. It safeguards their security interest against any third-party claims. If queries arise regarding this filing, GoodLeap is always available to address concerns at solarinfo@goodleap.com.

Selling Your Phoenix Home with a GoodLeap Solar Loan

When you’re ready to bid adieu to your Phoenix home, your GoodLeap solar loan presents two main routes:

  1. Loan Payoff: The majority of homeowners opt to clear the outstanding balance of their GoodLeap loan using the proceeds from their home sale.
  2. Loan Transfer: If the prospective homeowner expresses interest and qualifies, they can assume the responsibility of the GoodLeap loan.

Let’s focus on the latter, given its procedural nuances.

Transferring Your Solar Loan – A Step-by-Step Guide:

  1. Communication: Relay your intention to sell to GoodLeap.
  2. Contractual Agreement: The buyer and seller should concur in the property purchase agreement that the loan transfer is a sale condition.
  3. Loan Transfer Initiation: The potential homeowner liaises with GoodLeap to apply for the loan transfer.
  4. Approval: Once the buyer’s credit passes muster, the loan application is greenlit.
  5. UCC-1 Removal: Before concluding the sale, the UCC-1 filing pertaining to the solar equipment must be lifted.
  6. Sealing the Deal: Involved entities oversee the sale’s culmination.
  7. Transition: The buyer takes over the house, continuing with the solar loan payments and reaping the rewards of green energy.

For the buyer, there’s a list of actions to ensure a seamless transfer. This includes understanding the Solar Loan Agreement, applying for the solar loan, liaising with the original solar installer, and more. For the seller, clarity on the Solar Loan Agreement, necessary disclosures, and effective communication with the buyer are paramount.

If You’re Buying a House: Your Step-by-Step Checklist

  1. Review the Loan Agreement:
    • Get a copy and understand the Solar Loan Agreement to know what you’re stepping into.
  2. Fill Out the Loan Application:
    • Complete the GoodLeap solar loan application. Be sure to fill in every section!
  3. Sign and Send the Form of Intent:
    • The Form of Intent is like a promise note to the Seller that you’re interested in taking over the solar loan.
  4. Get the Green Light from GoodLeap:
    • Wait for the thumbs-up from GoodLeap, ensuring you satisfy their conditions for the loan.
  5. Know Your Solar Installer:
    • Ask the Seller about who installed the solar panels.
    • Contact the installer to make sure all warranties will be transferred to you after the loan take-over.
  6. Call Your Insurance Agent:
    • Let your insurance company know you have solar panels on your new home, ensuring they’re covered too!

Remember to Share These Documents with GoodLeap:

  • Real Estate Purchase Agreement
  • Closing Statement (if you’re also selling a house)
  • Loan Estimate on the new mortgage (showing balance, payment, and term)
  • Your recent paystubs as proof of your income

For Sellers: Checklist to Transfer:

  1. Share the Loan Agreement:
    • Ensure the Buyer is aware of the rates and terms of the Solar Loan Agreement they will be taking on.
  2. Disclose Outstanding Payments:
    • If you have any outstanding payments (Voluntary Principal Payment), let the Buyer know beforehand.
  3. Complete and Hand Over the Solar Form of Intent:
    • Complete and sign the Solar Form of Intent, and return it to the Buyer.

Important Note for Sellers: Make sure that your final payment and interest are cleared 5-7 business days before the Close Escrow Date. Sometimes, an additional payment might be needed to give the Buyer a cushion of at least 30 days from the close of escrow before their first payment is due.

In the process, both Buyer and Seller acknowledge that GoodLeap doesn’t control the home sale or closing timeline. They simply facilitate the loan process. To complete the solar loan transfer, the Buyer must be credit-approved, and if the full balance isn’t paid, the transfer can’t be finalized. If the Buyer can’t assume the loan, it will need to be paid off in full.

And that’s it! A simplified step-by-step checklist for Phoenix home buyers and sellers, managing the transfer of a GoodLeap solar loan. If you have any more questions, reach out to Rob directly. Remember, step-by-step, and you’ll sail through smoothly!

Solar homes in Phoenix, AZ, embody a blend of environmental responsibility and savvy investment. With organizations like GoodLeap offering flexible and clear solar loan options, transferring or managing your solar loan during a home sale becomes a streamlined process. Whether you’re a seller or a buyer, understanding the nitty-gritty of GoodLeap’s solar loan structure can pave the way for a smooth home sale and ensure continued harnessing of Arizona’s abundant sunlight.

A version of this article can be found online at: https://www.phoenixhomebuying.com/goodleap-solar-loan-transfer-guide-for-phoenix-az-solar-home-sellers/

Transferring Sunlight Financial Solar Loans in Phoenix, AZ: A Comprehensive Guide for Solar Home Sellers

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Sunlight Financial Solar Loan

The desert sunshine in Phoenix isn’t just a draw for snowbirds and tourists; it’s a compelling resource for homeowners looking to harness sustainable energy. With its bountiful sunlight, Phoenix has witnessed a surge in residential solar installations. Many of these have been made possible through solar loans, with companies like Sunlight Financial offering a robust pathway to powering homes through the abundant Arizona sun. For homeowners with a Sunlight Financial solar loan contemplating a home sale, navigating through the transition of a solar loan can present a unique set of considerations.

The Intricacies of a Sunlight Financial Solar Loan

Sunlight Financial offers a flexible and customer-friendly solar loan, providing the advantage of a one-time re-amortization and permitting clients to apply their federal tax credits toward maintaining manageable monthly payments. For example, Frank, a new solar customer, ensures timely monthly payments and opts to utilize his federal tax credit. The loan re-amortizes 18 months post-installation, adjusting based on his proactive payments and adherence to the 26% voluntary payment guideline. This thoughtful structure provides a cushion and financial latitude, especially for those who might leverage tax credits to maintain or reduce their monthly financial obligations.

Exploring Options to Manage a Solar Loan During Home Sale

Upon deciding to sell, homeowners have two primary paths: pay off the remaining balance, presenting the home with a fully-paid solar system, or opt for a loan transfer, allowing the buyer to take on the loan payments. The latter scenario necessitates a meticulous understanding and adherence to a set of steps ensuring a smooth transition, which hinges on both seller and buyer alignment and lender (Sunlight Financial) approval.

Selling Your Home While Transferring the Solar Loan

For those opting to transfer their solar loan, a series of well-defined steps ensure a seamless transition:

  1. Communication with Sunlight Financial: Alert them about the upcoming sale.
  2. Purchase Contract Alignment: Ensure the homebuyer agrees to the loan transfer and integrate this into the purchase contract.
  3. Buyer’s Loan Transfer Application: The buyer contacts Sunlight, undergoing a credit check and completing the loan transfer application.
  4. Loan Approval: Sunlight reviews and, contingent on credit approval, endorses the loan transfer.
  5. Removing the UCC-1 Filing: A critical step to finalize prior to closing, safeguarding Sunlight’s interest in the solar equipment while not affixing a lien to the home.
  6. Closing the Sale: Engage escrow, title, and closing companies to finalize the sale.
  7. Transfer Completion: The buyer settles into their new home, continuing the solar loan payments.

Understanding and Communicating the Security Interest (UCC-1 Filing)

Transparency and clear communication with potential buyers regarding the UCC-1 filing are pivotal. Explaining that there is no lien on the property, but a security interest in the solar equipment itself, is crucial to assuage any concerns. The filing underscores that the lender (Sunlight) holds a security interest in the solar installation, protecting their investment while not encumbering the home’s title.

Encouraging Loan Pre-Payment and Financial Flexibility

Emphasizing the option and benefits of early loan pre-payment to potential buyers can also be a compelling selling point. Sunlight Financial doesn’t impose prepayment penalties, and early settlement minimizes accrued interest, offering buyers a financially savvy pathway should they opt to expedite loan completion post-purchase.

Leverage the Appeal of Solar During Your Sale

While managing the logistical aspects of the solar loan transfer, don’t forget to highlight the appeal of a solar-equipped home to prospective buyers. Detailing reduced energy costs, potential tax benefits, and the environmental impact can elevate your home’s attractiveness, often offsetting any apprehension related to assuming a solar loan.

Ensuring Buyer’s Comfort and Understanding in Loan Transfer

Securing a buyer’s agreement to assume the solar loan necessitates thorough communication regarding the transfer process, requirements, and implications. Ensuring that the buyer is not only financially capable but also comfortable with the obligations and process is crucial to avoid any eleventh-hour disruptions to the sale.

Post-Sale and Ongoing Relationship with Sunlight Financial

After the sale concludes, the new homeowner’s relationship with Sunlight Financial and their commitment to the solar loan persists. Facilitating a smooth transition and providing any necessary documentation or support post-sale fortifies a positive ongoing relationship and ensures the sustained success of the solar installation.

As Phoenix continues to be a beacon for solar energy utilization, understanding and effectively managing solar loan transfers during a home sale is becoming an indispensable skill for homeowners. By adhering to a well-defined process, ensuring transparent communication with buyers, and highlighting the multifaceted benefits of solar installations, sellers can navigate through the complexities of solar loan transfers, contributing to a smooth home sale and perpetuating the utilization of Phoenix’s most abundant resource: sunlight.

Note: This article provides a generalized guide and it is essential for sellers to consult with a real estate professional (like Rob Madden, the Solar Home Broker) or attorney to navigate the specificities and legalities of their individual sale.

To contact Sunlight Financial directly, they can be reached at (888) 850-3359 or support@sunlightfinancial.com

A version of this article can be found online at: https://www.phoenixhomebuying.com/sunlight-financial-solar-loan-transfer/

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.

Selling a Solar Home in Phoenix

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selling a solar home in Phoenix

Sell A Solar Home in Phoenix

Solar has gone from a relatively new phenomenon in the Phoenix real estate market to a market staple accounting for over 8% of the total sales. Unfortunately most real estate agents are ill prepared or unprepared to handle some of the challenges that solar offers. Essentially there are 6 primary issues that need to be properly addressed by the real estate agent: 1) properly pricing a solar home, 2) marketing a solar home, 3) dealing with financing a solar home, 4) handling disclosure requirements with solar, 5) handling inspection issues with solar, and 6) overseeing the transfer of a solar lease. Failure to properly advise a seller and/or buyer with any of these six issues could result in lawsuits, loss of a buyer, additional time it takes to close, and the headaches associated by their incompetence. As a solar home seller in the Phoenix area, be prepared and ready so that you can avoid any of the potential issues.

Pricing Your Solar Home

Solar electrical systems can potentially add thousands in additional value to a home. While I will not cover pricing in great details here, it is important to note that all types of solar can add value to a home, not just a system that is owned by the home owner. In some cases solar leases and prepaid solar leases have been shown to increase the value of a home in the Phoenix area. Remember that solar is not a primary search variable for the typical home buyer but do influence a buyer’s decision to purchase when compared to similar properties. Think like a buyer when pricing and remember to use accurate sales comparables that are similar in size, condition, features, and amenities. Know the market and whether prices are going up or down and stay ahead of the market curve.

Marketing Solar Homes

No where in the real estate licensing exams are there questions regarding solar and how to sell a solar powered home in the Phoenix area. Marketing is the crucial step in selling that brings potential buyers through the door of your home. Without foot traffic through the door, you are wasting your time in trying to sell the property. Your marketing should take on a three tiered approach – traditional home marketing, internet marketing, and green marketing. Traditional marketing focuses on those tried and true practices that real estate agents have employed over decades including signage, flyers, mailers, and open houses. Internet marketing provides for the 24/7 presence of your home on the internet, whether it is through a single property website, email marketing to real estate agents, or featured listing on Realtor.com for example. Green marketing allows you to maximize the benefits of solar and put it in terms that potential buyers will understand and appreciate while differentiating your house from the rest of the home for sale on the market. Green marketing can be integrated in the other types of marketing but is necessary to fully maximize the value and marketing potential that solar can provide.

Financing Solar Homes

In the Phoenix area, roughly 80% of the solar home buyers financed the purchase of their home. Depending upon the type of solar system on your home, mortgage lenders may have guidelines that could affect the buyer’s ability to buy your solar home. Be sure your real estate agent knows how conventional, FHA, and VA guidelines affect the sale of a home with solar and how to navigate around any potential hurdles that could hinder the sale of the solar home.

Solar Home Disclosures

Even with updates to the standard seller property home disclosure, solar is a mere line item disclosure comment that fails to fully inform a potential buyer about the basic configuration let alone the savings that the solar provides the Phoenix homeowner. I am surprised we have not heard more about this topic in the news but I am sure there will be a host of issues coming up in the future if real estate agents are not proactive about properly disclosing to home buyers about the type of solar system, the condition of the equipment, and the costs associated with the solar array. The standard real estate purchase contract does not have a requirement of the buyer to assume a solar lease if one currently exists on the property unless the proper solar lease/loan assumption addendum is used. If selling your home, be sure to properly disclose your solar system, provide for disclaimers stating that past performance is not a guarantee for future solar performance, and include a contingency in the offer for the buyer to review and apply to take over the existing solar lease. Fortunately for me, I have already created documents for the purchase contract and seller property disclosure that provide additional protection for home solar home sellers.

Solar Home Inspections

Home inspectors do not inspect solar panels or any of the attached solar electrical equipment like an inverter, wiring, racking, etc. Besides needing to disclose the basics about your solar system, what happens if it is not operating as it was designed to do? The real estate contract provides general language covering electrical issues with the home but what about solar? What happens if the solar system stops working six months after closing. I can guarantee that you will be receiving a phone call from an attorney if the air conditioner stopped working and cost the home buyer thousands of dollars if it stopped working shortly after closing…is solar really that much different? You need a real estate broker that can help limit you with these issues before they become one.

Solar Loan or Solar Lease Transfer

Having worked both the buying and selling end of a solar lease and solar loan transfer, most real estate agents are unfamiliar with the process of transferring a solar lease/loan. Most fail to start the process BEFORE the home goes on the market. Many do not realize that the solar company’s UCC-1 filing can cloud the title of your home and potentially delay closing. Furthermore, solar loan transfers require the buyer to qualify for the loan transfer and could affect their ability to qualify for the home loan as well. These are just additional steps to selling that if approached properly and proactively, do not hurt the sale of your home. Failure to understand the steps involved and proactively approaching the different phases of a solar loan or solar lease transfer can hurt, delay, or even jeopardize your home sale.  Having a real estate broker that understands these steps just simplifies the process for you and your home buyer.

Overall, the key to selling a solar home in Phoenix is making sure you have a competent and qualified Realtor working for you that knows the ins and outs of solar. Fortunately the Solar Home Broker is a licensed and solar trained Realtor in the Phoenix area that can help you sell your solar home.

Call Rob Madden, the Solar Home Broker at 480-888-1234 to set up a free, no-obligation appointment to discuss selling your 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.