Before you buy a home with solar power, know this

Buying a home with solar power can be a great thing but be sure to assess it before jumping into the purchase. Picture: On Shot/Pexels

Buying a home with solar power can be a great thing but be sure to assess it before jumping into the purchase. Picture: On Shot/Pexels

Published Sep 26, 2023

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More South Africans are investing in solar power systems for their homes, or at least considering going this route to mitigate the effects of load shedding, grid instability, and even the increased price of electricity.

Similarly, people who are looking to buy homes are increasingly seeking out those that do have off-grid systems already installed, and will often pay a premium for such features.

But just because a property you love has the added bonus of a solar power system, it does not mean that you should simply jump at the opportunity to snap it up.

In the same way you would assess key factors in a prospective home purchase, such as the condition of the roof or gutters, or the structural condition of the walls, an existing solar system also needs proper evaluation, says Carl Coetzee, chief executive of BetterBond.

To make sure your purchase of a home with solar power is a good one, or to ensure you make wise decisions about installing your own, he says you need to do these three key things:

1. Assess the solar power system

“Before finalising the purchase of a new home, it is vital to thoroughly assess the existing solar power system installed in the property. You may need to outsource this process if you are not clued up on how to assess all aspects of the system.”

During the initial assessment, consider the system capacity and capabilities, battery storage capacity, and the system integration and automation.

2. Evaluate the efficiency and maintenance

Solar power systems, like most technology, require regular maintenance to ensure optimal performance. Thus, you should inspect solar panels for any damage, wear, or deterioration.

“Ask for maintenance records and warranties to determine the system's overall health and potential future costs.”

Coetzee says an inverter is a critical component of the solar power system, so it is vital to verify the condition and efficiency of the inverter, as it converts DC power generated by the panels into usable AC power for household use. It is also important to understand the maintenance needs of the solar power system, including cleaning the panels, checking battery levels, and conducting periodic inspections.

“Ask about any ongoing maintenance contracts or service agreements, along with the warranties provided for the system and its components.”

3. Consider financial aspects

If the home that you are buying does not have an existing solar system, but you would like to install one, Coetzee says it is crucial to be informed about the financial implications.

“Assess the system’s potential financial benefits, calculate the estimated savings on electricity bills, and evaluate the system's payback period to determine if it aligns with your long-term financial goals.”

You should also explore all the various financing options available for solar installations, such as cash, loans, subscription agreements, or rent-to-own options, and make sure that you understand the associated terms, interest rates, and repayment schedules.

Coetzee adds that tax incentives are a motivating factor to invest in a solar system as this is the Government’s way to encourage households to invest in clean electricity generation capacity, which can supplement the electricity supply.

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