Free Solar Panels Albuquerque NM
You have probably heard about free solar panels Albuquerque on the radio or maybe someone has knocked on your door. I am a real estate agent and recently sold a home that had free solar panels installed on the home. This is a new trend and home owners need to understand they are entering into a long term legal contract. I have written this article to help home owners through the decision making process.
You are thinking of free solar panels, you are making a very large financial decision. Depending on the size or your home, you can can be looking at a $20,000 decision or more.
Free Solar Panel Contract
First, there is no such thing as free solar panels. Here is how the free solar panel companies are able to install free solar panels on your home with no up front cost. You are required to sign a long term power purchase agreement, usually 20 or 25 years. In most cases you are required to purchase all the power produced by the system at a predetermined price. Please note you are not paying for the power you use but the power that is produced. If the system produces more power than you use, you still pay for the power produced. Most of these contracts have an annual increase in the price per kilowatt-hour you will pay.
If you want to get out of the long term power purchase agreement, you must pay a fee to terminate the agreement. The payment required to terminate the agreement will decrease over time.
Most of these companies will prepare a long term financial analysis to help you see the benefits of the free solar panels. Like any long term financial analysis, it is based on certain facts and certain assumptions. Some facts are: current cost per kilowatt hour you are paying and the cost you will pay per kilowatt hour from the power purchase agreement. The main assumptions are the future cost per kilowatt hour from you local utility and the estimated output of the solar system.
Free Solar Panels Do Your Homework
I suggest you take a very close look at the “facts” and the assumptions. Verify your actual cost per kilowatt hour from your local utility. Do not assume the free solar panel company utility costs are accurate. Check with your local utility to find out how much their costs have increased on an annual basis. Does the assumptions of future price increases match those provided by the free solar panel company?
Free Solar Panels Selling Your Home
If you want to sell your home the new home buyer must be willing to assume the terms and conditions of the long term power purchase agreement. The company that installed the free solar panels also must approve the buyer. They want to make sure your buyer is a good credit risk. If the buyer is not willing to sign the long term power purchase agreement, then you cannot sell your home to them. If the company that installed the free solar panels on your home does not approve your buyer, the buyer may be required to make a deposit with the company or you cannot sell your home to that buyer.
The purpose of this article is not pro solar or anti solar. You are about to enter into a long term contract and you should analyze the agreement and make sure you are making a good decision. You are 100% committed to this contract after you sign on the dotted line. Make sure you read the entire agreement, check the facts, assumptions, read the fine print, and make the best decision.
Free solar panels do not make your home more desirable or add value to your home. In most cases, free solar panels and a long term power purchase agreement may make your home harder to sell. Think about it this way, a buyer can purchase any home they want. If they want free solar panels, they just need to make a phone call and can have free solar panels installed on any home they purchase.
Free Solar Panels Albuquerque NM