Now that the solar industry is taking off like a caffeinated roadrunner, prospective home buyers will soon be seeing solar electric systems pop up in real estate ads and brochures. The opportunity of buying a home with a solar electric system already installed seems like a great deal, and it probably is. But there are factors that need to be considered before signing any papers.

An existing solar system will certainly raise the cost of the home and by a significant amount. However, this price hike is likely much smaller than the price of a new installation. Typically a solar electric system will raise the value of a home between $10-20 per dollar saved on energy costs over a year (savings of $800/year means a $8,000-16,000 increase in property value). This is obviously hard to figure for the interested homebuyer. A good rule of thumb to remember is that, upon installation, a solar electric system raises home value by around half the initial installation cost. Considering that most full systems cost between $30,000-$40,000, you can expect a price tag that is $15,000-$20,000 higher.

Therefore, check the age of the system. A fairly new system can save you big bucks and pay for itself relatively quick in utility savings because it was absorbed into the price of the home. Also, net metering laws, among other incentives, are catching on all over the country and can facilitate an even faster payback. Solar energy systems are extremely durable and, other than the occasional cleaning of the panels, are maintenance-free. Systems often have 20-25 year manufacturer warranties and up to 10 year service warranties on inverters. If these warranties are nearly expired then you should think twice or make sure the system has been checked for efficiency before signing on.

Perhaps the biggest pro to buying an existing solar home beside the obvious energy bill savings, is the chance to go eco-friendly. You may be able to remove your stamp from the global warming crisis and generate that personal satisfaction that comes with producing your own energy.

Generally, buying a home with existing solar panels is a good idea. Just make sure of some things first.

• Ask the realtor or homeowner about the history and condition of the system.
• Find out who the installer was and make sure that they are a reputable, qualified solar installer.
• How are the batteries (for off-grid or back-up systems)?
• As a note, you may have to sign a new interconnection agreement with your local utility company before a grid-tie system can be turned back on.

If you are truly ambitious about buying a solar energy home, look for programs such as California’s New Solar Homes Partnership (NSHP), which provides incentives to developers and home builders to integrate solar energy systems into new construction.