Yes, you can typically get a mortgage on a house with solar panels. In fact, having solar panels installed on a property can sometimes be seen as a positive factor by lenders and may even increase the property’s value.
However, there are a few important considerations to keep in mind:
- Appraisal and valuation – when applying for a mortgage on a property with solar panels, the lender will likely require an appraisal to determine the property’s value. Appraisers will consider various factors, including the value added by the solar panels. Generally, if the solar panels are owned outright and in good working condition, they may add value to the property. However, if the panels are leased or have significant maintenance issues, their impact on the property’s value may be limited
- Ownership and financing options – if the solar panels are owned outright, they are considered part of the property and can be included in the mortgage financing. However, if the panels are leased or financed through a Power Purchase Agreement (PPA), the financing arrangement may need to be transferred to the new homeowner or paid off before the sale can proceed. Lenders may have specific requirements regarding the transfer or payoff of solar panel financing
- Assessment of solar panel system – lenders may require an assessment of the solar panel system to ensure that it is properly installed, functioning efficiently and compliant with relevant regulations and building codes. This assessment may be conducted by a qualified solar energy contractor or inspector
- Insurance considerations – homeowners insurance policies typically cover solar panel systems as part of the property, but it’s important to verify coverage with your insurance provider. Lenders may also require proof of insurance coverage for the solar panels as a condition of the mortgage
- Tax and financial incentives – solar panels may be eligible for tax credits, rebates, or other financial incentives, which can help offset the cost of installation. These incentives may affect the property’s overall affordability and financial considerations for both the buyer and the lender
Overall, obtaining a mortgage on a house with solar panels is typically feasible, but it’s important to communicate with your lender and ensure that all aspects of the solar panel system are properly documented and accounted for in the mortgage process. Working with professionals experienced in solar energy and real estate transactions can help streamline the process and ensure a successful outcome.