Buying a Solar Home in Arizona: What to Know First
Introduction
Considering purchasing a solar home in Arizona? This guide will equip you with essential knowledge to make an informed decision, avoiding potential pitfalls along the way.
Why Solar Homes Are Different in Arizona
Arizona's abundant sunlight makes solar energy a popular choice. However, the savings and benefits vary based on several factors:
- System Ownership: Leases, Power Purchase Agreements (PPAs), or owned systems? Each has unique implications for your bills, appraisal, and resale value.
- Utility Provider: Arizona Public Service (APS), Salt River Project (SRP), or others? Rate structures differ, impacting your savings.
- Energy Usage Patterns: Peak hours and battery storage capabilities influence your overall energy costs.
The Crucial First Question: System Ownership
Do the sellers own the solar system? This is vital for understanding:
- Financing: How it affects loan appraisal and closing processes.
- Payment Responsibility: Whether you take over existing payments or if the seller must pay at closing.
- Simplified Transfer: Owned systems are typically easier to transfer as they're considered permanent fixtures.
Financing Scenarios:
- Owned Solar (Ideal): Seller owns panels outright, either paid for in full or financed and payable at closing.
- Financed Solar (Potentially Complicated): Various financing methods; some can lead to lender/appraisal issues if panels are considered personal property collateral.
- Solar Lease or PPA (Complex): Third-party contracts impact your loan, monthly costs, and future resale value.
The Solar Document Checklist
Before narrowing down your offer, request the following documents from the seller:
- Proof of ownership/lease/PPA agreement.
- System specifications (size, inverter type, battery details).
- Production history (monthly output for 12-24 months).
- Utility bills (matching production history for comparison).
- Warranty documents (panels, inverter, roof work).
- Permits and final inspections (if applicable).
- Monitoring app access (to track performance post-purchase).