Buying A Solar Home Checklist

Congratulations!

Maybe you bought or are thinking about buying a home with a solar energy system. We’re not surprised. With the growing popularity of solar, you may encounter solar on some of the houses you see.

So, what do you need to know when considering buying a house with solar? If the previous homeowner owns the solar array, they will be transferring all the benefits to you. These benefits come in the form of reduced electric bills and clean, renewable power. You may pay a little more for the home itself due to the increased home value that comes with solar. But, think about it this way: would you rather pay $200,000 for a home with electric bills that cost $300 per month or $225,000 for a home with electric bills $50 or less.

Solar Homebuyer Checklist

 

1. Get Educated About Solar

Because you didn’t purchase the solar yourself, you didn’t go through the solar buying process that would have educated you on the many facets of solar homeownership. Here are a few resources to get started:

 

2. Learn About Your New Solar Array

How old is the solar system on your new home? What type of solar panels make up the solar array? How much is it worth? We recommend requesting the following documents from the company that installed the solar energy system to find answers to these important questions.

  • The original quote or contract for your solar energy system including the scope of work, equipment, sale price, and warranty information.
  • The built drawings of your solar energy system.
  • Information about the specific equipment that makes up your solar system.
  • With the help of the previous homeowner or your solar installer, learn how to log in to your online monitoring platform to track the performance of your solar array.

 

3. Set up Solar Renewable Energy Credits in Your Name

Solar Renewable Energy Certificates or SRECs (pronounced “ESS-rek”), are annual credits for the clean electricity produced by your solar PV system. They represent “the renewable energy attributes” associated with one megawatt-hour of electricity produced by your system each year (one megawatt-hour is equal to 1,000 kilowatt hours of solar).

A general rule of thumb in Ohio is 1kW of solar capacity will produce approximately 1 SREC per year. Therefore, a 5kW solar PV system will produce about 5 SRECs per year and a 10kW system will produce about 10 SRECs per year.

When you buy a home with a solar system, the SREC certification, registration and agreements are transferable to the new owner. To do this, the SREC broker who currently holds the account will need the contact information of the new property owners and associated closing documents showing the transfer of ownership.

There are different buyers, brokers and aggregators to choose from to sell your SRECs. Third Sun Solar suggests Knollwood Energy, or Sol Systems to our customers.

 

4. Add your solar system to your homeowner’s insurance

Using the information you’ve collected, add your solar energy system to your homeowner’s insurance. This is a good way to protect the system in the case of damage.

 

5. Switch your interconnection agreement

Give your solar installer a call and ask them to switch the name on your interconnection agreement with the Public Utility Commission of Ohio (or your state’s Public Utility Commission).

Interested in more? We are always willing to help you with any questions you might have about your new solar array.

Selling A Home with Solar Panels

Selling a Home with Solar Panels: What you Need to Know

Are you a parent with young ones and a growing family? You’re probably anticipating a move to a home with more bedrooms just around the corner.

Or, you’re not sure where your job will take you in the not-too-distant future. Maybe you’ll get to relocate and will need to buy a home in a different City or State.

Perhaps you’re nearing retirement age (or there already). What happens in 5 – 10 years when it’s time to downsize?

The home you’re in now might not be the home that you live in for the next 25 or more years. With your solar system lasting at least 25 years (and many functioning even after 40 years), the question you’re asking yourself is: is solar a worthwhile investment if I plan to move?

Should you still consider solar if you aren’t sure you’ll be in your home forever?

Homeowners reap many benefits from residential solar panels: they take advantage of the Federal Solar Investment Tax Credit, lower their electric bills, reduce their carbon footprint as well as their dependence on the utility grid.

What is one additional benefit that stands out? Homeowners increase property value significantly when they add solar panels.

As solar becomes more mainstream, real estate agents, appraisers, and homeowners are looking to understand more about what a solar energy system does to the value of a home. We’re glad others are asking this question too, which has resulted in several studies published on the topic.

The findings:

  • A recent report by Zillow shows that on a national average, homes with solar sold for 4.1% more than homes without solar. So by investing in solar, you’re both saving money now AND increasing the resale value of your home.
  • The Berkeley National Laboratory & U.S Energy department (Appraising Into The Sun) found “strong, appraisal-based evidence of PV premiums in each of seven market areas in six states.
  • The Berkeley National Laboratory (Exploring California PV Home Premiums) concludes that “each 1-kW increase in size equates to a $5,911 higher Premium”

To date, much of the research on selling a home with solar panels comes from the West Coast. As a leader in the clean energy movement, the West Coast has more data to spare than the East. As the burgeoning solar movement intensifies, we will have more data to analyze here in the Midwest.

At Third Sun Kokosing Solar, we work with clients regularly who are either selling or purchasing homes with solar panels installed. And, in our experience, all parties have been happy with the results.

Return on Investment

You will reap the benefits of your solar energy system while you live in your home: taking the ITC, zero to low electric bills, sourcing clean energy, to name a few. But when it’s time to sell, solar brings more to a home purchase than any other home improvement:

  • The return on investment is high for the purchasing homeowner, who benefits from reduced electric bills
  • There is an environmental return on investment seen in the reduction of carbon emissions
  • The return on investment on long-lasting solar equipment increases as traditional electric costs rise
  • In some cases, existing solar installations get grandfathered into older and more lucrative Solar Renewable Energy Credit (SREC) plans that are no longer available. This makes the purchase even more valuable to the buyers.

Solar Stands Out 

A solar energy array is an important marketing piece. With the rise of the eco-conscious consumer, solar will undoubtedly set your property apart when it’s time to sell. With a national fixation on the renewable energy movement– solar has become quite popular. Highlight the benefits, you know them better than most people!

And, be prepared to answer any questions potential buyers might ask: Who installed the solar? What is the size of the solar system? Do warranties still cover the equipment? Is the craftsmanship solid?

Take a look at the types of things a solar homebuyer is thinking about when looking at your solar home here.

Breaking Down The Math 

As we mentioned earlier in this article, much of the data on the subject comes from the west coast. That’s an important nuance to keep in mind. Using Zillow’s 4.1% home value increase we broke down an example below.

So, between benefiting from the federal investment tax credit and an increase in home resale value, we find that a net system cost would look something like $10,200.

If you are offsetting, say your $150 electric bill every month with that solar energy, you will break even (financially) somewhere between 5 and 6 years.

When It’s Time to Sell: Reach Out 

At the end of the day, homebuyers will be thrilled by the prospect of purchasing a home with little to no electricity bill. They’re going to be willing to pay more for that benefit.

We recommend you work closely with your realtor and solar installer when it’s time to sell. Their expertise in their respective fields will help you reap the highest return on your investment.

Denison University Solar Pollinator Garden

  • Denison University’s pollinator-friendly solar array is the first of its kind in the State of Ohio!
  • Nationwide, bees, monarchs, and other pollinators are disappearing, and scientists agree that loss of habitat is a primary concern.
  • This pollinator habitat provides natural sources of food, water and shelter to wildlife and is sustainably maintained with the incorporation of native plants instead of pesticides.
  • The habitat is part of the Million Pollinator Garden Challenge, a national effort to grow a million gardens that foster habitats for threatened insects such as butterflies and bees.
  • The 10-acre, 2.3 megawatt solar system is big enough to power 300-350 average Ohio homes.

Learn more here!

Denison University Solar Pollinator Garden

  • Denison University’s pollinator-friendly solar array is the first of its kind in the State of Ohio!
  • Nationwide, bees, monarchs, and other pollinators are disappearing, and scientists agree that loss of habitat is a primary concern.
  • This pollinator habitat provides natural sources of food, water and shelter to wildlife and is sustainably maintained with the incorporation of native plants instead of pesticides.
  • The habitat is part of the Million Pollinator Garden Challenge, a national effort to grow a million gardens that foster habitats for threatened insects such as butterflies and bees.
  • The 10-acre, 2.3 megawatt solar system is big enough to power 300-350 average Ohio homes.

Learn more here!

Posted in Uncategorized

Federal-Hocking Local Schools flip the switch on new solar energy system

Federal-Hocking Local Schools cut the ribbon on a new solar installation that will offset 70% of the school’s annual energy use with renewable power. Students “flipped the switch” on a 700 kW solar system for the first time at the Federal-Hocking Middle & High School campus on July 11th 2019 at 11 AM. Former Federal-Hocking Superintendent, George Wood will speak at the event.

“Solar and renewable energy are the way of the future,” said George Wood. “But getting from here to there will take big actions by big organizations and institutions, like schools. Our district is a demonstration of what other districts can do.”

Attendees were joined by Former Governor and clean energy advocate Ted Strickland, State Representative Jay Edwards and Athens County Commissioners. The event follows the recent appointment of Third Sun Solar’s CEO Michelle Greenfield, to the Governor’s Executive Workforce Development Board.

The rooftop array will deliver environmental benefits to the region, eliminating 583 metric tons of carbon emissions each year – the equivalent of the annual energy used by 70 homes – offsetting over 825,000 kilowatt-hours of electricity each year.

The array was built and installed by a partnership consisting of the installer, Third Sun Solar, New Resource Solutions, who structured the financing and Foundation Renewable Energy Company, the system owner and operator.

“Third Sun Solar has installed solar on more than 70 schools, but this project is really exciting because it is right here in our community, and many of the folks working Third Sun Solar,” said Geoff Greenfield, President and co-founder “While the financial benefits to the school are very attractive, we believe that the benefits to our local economy, like the growing number of solar jobs, are also very important.”

Several installers on this project were students at Federal-Hocking High School and Joint Vocational School.

Watch the live-streamed video of the event here.

“I applaud Third Sun Solar and New Resource Solutions for building this impressive solar energy project. There are so many benefits: the school district saves money, our air is cleaner, and high quality jobs are created here in Appalachia. Sadly, while other states are raising their renewable targets to 50% or even 100%, Ohio’s clean energy standards are under attack. A decade ago, my administration worked with a Republican-controlled legislature to create a strong clean energy plan for Ohio that has saved families and businesses billions of dollars and created thousands of jobs. It is my sincere hope that we don’t go backwards on this issue” – Former Governor, Ted Strickland

Federal-Hocking Local Schools flip the switch on new solar energy system

Federal-Hocking Local Schools cut the ribbon on a new solar installation that will offset 70% of the school’s annual energy use with renewable power. Students “flipped the switch” on a 700 kW solar system for the first time at the Federal-Hocking Middle & High School campus on July 11th 2019 at 11 AM. Former Federal-Hocking Superintendent, George Wood will speak at the event.

“Solar and renewable energy are the way of the future,” said George Wood. “But getting from here to there will take big actions by big organizations and institutions, like schools. Our district is a demonstration of what other districts can do.”

Attendees were joined by Former Governor and clean energy advocate Ted Strickland, State Representative Jay Edwards and Athens County Commissioners. The event follows the recent appointment of Third Sun Solar’s CEO Michelle Greenfield, to the Governor’s Executive Workforce Development Board.

The rooftop array will deliver environmental benefits to the region, eliminating 583 metric tons of carbon emissions each year – the equivalent of the annual energy used by 70 homes – offsetting over 825,000 kilowatt-hours of electricity each year.

The array was built and installed by a partnership consisting of the installer, Third Sun Solar, New Resource Solutions, who structured the financing and Foundation Renewable Energy Company, the system owner and operator.

“Third Sun Solar has installed solar on more than 70 schools, but this project is really exciting because it is right here in our community, and many of the folks working Third Sun Solar,” said Geoff Greenfield, President and co-founder “While the financial benefits to the school are very attractive, we believe that the benefits to our local economy, like the growing number of solar jobs, are also very important.”

Several installers on this project were students at Federal-Hocking High School and Joint Vocational School.

Watch the live-streamed video of the event here.

 

“I applaud Third Sun Solar and New Resource Solutions for building this impressive solar energy project. There are so many benefits: the school district saves money, our air is cleaner, and high quality jobs are created here in Appalachia. Sadly, while other states are raising their renewable targets to 50% or even 100%, Ohio’s clean energy standards are under attack. A decade ago, my administration worked with a Republican-controlled legislature to create a strong clean energy plan for Ohio that has saved families and businesses billions of dollars and created thousands of jobs. It is my sincere hope that we don’t go backwards on this issue” – Former Governor, Ted Strickland

Working With Your Homeowners Association

Working with your homeowner’s association for solar

The History of Solar And Homeowners Associations

In some neighborhoods, a homeowner must work with their homeowners association (HOA) prior to adding solar panels. When it comes to addressing solar proposals from homeowners, the HOA will typically rely on its restrictive covenants, or “deed restrictions” to guide their decision making. Covenants describe how a property can be used and what can be built on it. HOA’s use this tool to maintain uniformity and aesthetics in a neighborhood.

To begin the approval process, submit a proposal to the HOA architectural review person or committee. Sometimes the entire HOA board will vote to approve or disapprove of a proposal.

At the end of the day, your HOA deed restrictions often do not address solar panels.

The documents were written many years ago when residential solar wasn’t as common as it is today. So, in most cases, one will find that HOA deed restrictions do not include language that prevents solar. However, this does not mean that HOA boards will approve solar projects. There may be hesitancy by the HOA board to approve anything that is deemed to alter the “uniformity” of the neighborhood. Some HOA’s have restrictions on roof color which solar panels may not conform with. Even without roof color restrictions, HOA’s may see solar panels as altering the uniform look of the neighborhood.

Besides the issue of uniformity, HOA’s can typically block solar panels by invoking a clause in the deed restrictions pertaining to “aesthetics”. Since this is subjective, HOA boards can simply say that the panels will detract from the aesthetics of the neighborhood.

 

Before submitting your solar proposal to your HOA:

 

1. Become familiar with the HOA restrictive covenants.

  • Is there any language that is specific to solar panels? If so, are there certain restrictions or guidelines? If not, is there language regarding maintaining neighborhood uniformity?
  • What is the HOA approval process for home improvements? Can the HOA reject a proposal solely for aesthetic reasons?

2. Develop a proposal for the homeowner that addresses the possible HOA concerns.

  • If aesthetics and/or uniformity are a concern, consider: all black panels and/or careful placement of panels ( to make sure design layout is optimal from an aesthetics standpoint)

3. If you think immediate neighbors will be supportive, talk to them.

  • This support can be included in a proposal letter to HOA. HOA boards may be fearful of backlash from neighbors, so if homeowner has spoken with them and has their support, this will be beneficial.

4. Find out what other neighborhoods nearby are doing with regards to solar.

  • Talk to other HOA’s in the area. Contact information for HOA presidents may be available from the city in which the neighborhood is in. For example, the City of Powell, OH has a list of contact information for all 29 HOA’s in the city.
  • Are HOA’s in the area allowing solar? If not, what restrictions are in place?
  • Are there any solar homes in surrounding neighborhoods?
  • There is a chance that not many HOA’s will have experience dealing with solar. However, this also means that there is a high probability that no HOA’s in the area will be restricting solar. This fact can be highlighted when the homeowner submits a solar proposal to the HOA. If other nearby HOA’s are not restricting solar, this may influence the homeowner’s HOA to allow solar to go forward.

After submitting your solar proposal to your HOA:

Submit your proposal to the HOA along with a letter to the appropriate HOA architectural review person/committee, etc.

  • Points to consider including in this letter:
    • Reasons for wanting to go solar (electricity cost savings, making an investment in the home, environmental stewardship).
    • Make note of research showing a substantial increase in home resale value for solar homes. This point is crucial since the aesthetic concerns of HOA’s typically stem from concerns about neighborhood value.
    • Briefly show data regarding environmental benefits (i.e. emissions avoided: equivalent number of trees planted, pounds of coal avoided, miles driven by car avoided, etc.). Your solar proposal should have statistics like this included.
    • Discuss any findings from talking to other HOA’s. Your proposal will be strengthened if the letter can state that “other nearby HOA’s are allowing solar” or “of the HOA’s I contacted, none have any restrictions on solar.”
    • Solar is becoming more common and widespread, so this is an opportunity for the neighborhood to set a precedent — with a reputable solar firm who will ensure the installation maintains the aesthetics of the neighborhood. In other words, present this as a chance for the HOA to set a high standard for solar in the neighborhood.
    • Consider proposing a set of solar guidelines that the HOA can use if desired. This may make it more palatable for the HOA to approve a solar installation if it knows that certain standards will have to be followed going forward. The HOA may be ok with the solar proposal of the current homeowner with regard to aesthetics, etc., but is concerned that this will open the door to all types of solar installations that may not be done as well by other homeowners. Northwest Solar Communities has developed residential solar guidelines that can be used as a template for HOA’s. Guidelines may need to be modified somewhat – i.e. take out language regarding ground-mounted solar, etc.
    • Stress at the close of the letter the desire to work closely with the HOA.
    • Provide contact information for yourself and your Third Sun Solar Consultant for any questions.
  • Offer to present the proposal to the architectural review committee/board.
    • In the presentation, show photos of high quality residential installations. Your Solar Consultant would be happy to provide you with photos to use.

If your solar proposal is not accepted…

If HOA does not approve the solar proposal, you may consider obtaining a supportive opinion letter from an attorney that addresses concerns brought up in the HOA restrictive covenants.

  • This letter can describe how the solar proposal is in line with the HOA restrictive covenants and can speak to specific concerns raised.
  • The point of the letter is not to appear as a threat of possible litigation against the HOA. Rather, it is to provide a supportive legal document to facilitate the HOA approval of solar.
  • Note: this step can be taken prior to the initial submission of the proposal to HOA, but will add to the total cost to the homeowner and possibly be an unnecessary one.

Homeowners may consider modification of HOA restrictive covenants.

    • Often this entails obtaining approval from 75% of homeowners in the neighborhood.
    • One possible approach is to circulate petitions in the neighborhood for approval of solar guidelines (as mentioned above).
    • The HOA attorney will need to write an amendment to the restrictive covenant.
    • Prior to petitioning the neighborhood, send out an email to the neighborhood explaining the petition process and attach the proposed amendment, sample guidelines, etc.
    • Likely, the most successful approach is going door-to-door in order to facilitate in-person conversations.
    • Along with the petition, take around copies of proposed amendment documentation, proposed solar guidelines, and rendition of homeowner’s house with panels.
    • If the petition is successful, the HOA board will need to formally adopt amendments to restrictive covenants, then submit documentation with the county recorder.
    • You will now be able to resubmit the solar proposal.

Get Started

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