The introduction of third-party leases has helped rapid growth of rooftop solar but may be hindering home sales in California and other states. Lawrence Berkley National Laboratory (LBNL) found host-owned solar PV actually adds value to homes ($3-$4/watt); however, leased solar appears to introduce complexity in home resale. Before finalizing a sale, a homeowner with a solar lease may be required to either buy out the lease contract or find buyers willing and able to assume lease terms with sometimes stringent credit qualifications. Real estate professionals report a growing number of sales falling apart because of disputes over solar leases.
Residential solar may increase the value of a home, but the ownership structure is proving to be an important point of negotiation during the sale of a home. Consequently, challenges with solar leases at the time of sale may throw cold water on the third-party leasing trend which has been responsible for an explosion of residential solar installations.
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