Buying a Home With Solar Panels in Albuquerque: Questions to Ask

With more than 300 sunny days in a typical year, solar panels make sense in Albuquerque. They're common on homes throughout the metro, from older neighborhoods near the center of town to newer developments farther out. But when panels are already on a house you're thinking about buying, there's more to look at than the potential savings. Our real estate brokers recommend figuring out who owns the system, how well it has been maintained, and what obligations come with it.

Start With One Question: Who Owns the Panels?

This is the first thing to sort out because the answer can affect the purchase itself.

If the seller owns the system outright, the panels will generally stay with the house. Things get a little more complicated when there's a lease, power purchase agreement, or outstanding solar loan.

• Owned panels usually transfer with the property.
• With a lease or power purchase agreement, the buyer may have to take over an existing contract.
• A solar loan may still have a balance that has to be dealt with before or during closing.

Don't wait until the end of the transaction to look at those documents. Some solar leases require the buyer to qualify with the provider before the agreement can be transferred. Find out what the process involves while there's still plenty of time to work through it.

Take a Good Look at the Roof, Too

It's easy to focus on the panels and forget what's underneath them.

Albuquerque roofs deal with strong sun, big temperature swings, wind, and the occasional hailstorm. Find out how old the roof is and whether it was replaced before or after the solar system went in.

A roof that's nearing the end of its useful life doesn't necessarily make the home a bad choice. It does mean you'll want to account for the added work of taking the panels down and reinstalling them when the roof is replaced.

If the seller has had roof work done since the solar installation, ask to see those records. You may also want a separate solar inspection. A general home inspector can identify visible problems, but a standard inspection doesn't always include a detailed evaluation of the solar equipment.

Look Beyond One Month of Electric Bills

A low electric bill in April doesn't tell you much about what the home costs to run in July.

Ask for about a year's worth of utility bills, along with any production reports available for the solar system. That gives you a better look at how the panels perform through Albuquerque's hotter and colder months.

You'll also want to know how the system connects with the Public Service Company of New Mexico and what billing arrangement applies. If the panels have been on the home for several years, the current agreement may not be the same as one offered on a brand-new installation. Ask whether that arrangement will continue after the purchase.

Pay attention to the property itself, too. A tree that was small when the panels went up may now shade part of the roof. A nearby addition or new construction can have the same effect.

Don't Skip the Paperwork

A solar system comes with more paperwork than most features of a house, and it's worth collecting what you can before closing.

Permit and inspection records can help confirm when the system was installed and whether the work went through the proper channels. You'll also want copies of warranties for the panels and any other major equipment.

Those warranties aren't all the same. The panels may be covered for many years, while an inverter or battery could have a shorter warranty. Labor coverage from the installer may be different again.

A few details worth pinning down include:

• Whether warranties transfer to the next homeowner
• Whether a transfer form or fee is required
• Whether the original installer is still servicing systems locally
• What coverage remains on the inverter or battery
• Whether required HOA approval was obtained, if the home is in an HOA community

What if the installer has gone out of business? The system may still have manufacturer warranty coverage, although arranging repairs could be less straightforward. Find out whether another local company can service the equipment.

None of these questions is especially difficult on its own. The problem is discovering one of them after you've already closed.

Consider How Solar Affects the Home's Value

Solar panels can be a selling point, especially when the system is owned outright. But having solar doesn't automatically mean a home should command a higher price.

The age of the equipment, its condition, remaining warranties, and comparable sales all matter. A leased system may also be viewed differently from one that's fully paid off.

When browsing Albuquerque homes for sale, consider solar alongside the property's other features rather than treating it as a reason to pay more on its own.

Know What You're Buying Along With the House

Buying a home with solar panels doesn't have to be complicated, but it does call for a little extra homework. Getting answers early can help you avoid unexpected expenses and feel more confident about your purchase.

If you've found a home with solar and aren't sure what questions to raise before moving ahead, contact us. We can help you look at the property as a whole, including the details that may not be obvious during the first showing.