With the expansion of utilization of solar energy across the globe, many of the people who invest in these solar energy installations may think of ways that they can resell their solar panels. Due to the nature or the type of the product involved, there are some factors that may affect the sale of solar panels such as ownership of the solar system, terms of contract and market demand.
Understanding Ownership and Options
When considering selling your solar panels back to the company, several key factors come into play:When considering selling your solar panels back to the company, several key factors come into play:
- System Ownership: The status of the solar panel ownership and whether or not you are currently leasing for a specified time influences it greatly.
- Contractual Agreements: Policies governing your solar panel installation can either be a contract or lease agreement and these determine whether you have the right to sale and in case, the circumstances under which you can sell the solar panels.
- Market Demand: The overall market demand for used solar panels and the general condition as well as efficiency of your panels will define the amount to be fetched.
Can One Sell back the Owned Solar Panels?
Can I Sell My Solar Panel? If the client owns the solar panels outright, they typically have the prerogative to continue the solar power service contract with another party besides the original installation company. However, there are some key considerations to keep in mind:
Resale Value: The market value of solar panels and renewable energy systems (RES) generally tends to decline over time due to factors like obsolescence, age, condition, and advances in solar technology.
Buyback Programs: Some solar companies offer buyback programs for used solar panels from homeowners or residents. It’s important to note that these programs can vary significantly, so it’s crucial to clarify the terms with the original installation company.
Contractual Obligations: Review the initial contract signed when the panels were installed to understand any prohibitions or rules regarding their resale. Some contracts may include clauses related to buyback policies or other circumstances that could affect contract cancellation.
Leased Solar Panels
If you lease your solar panels, selling them back to the installation company or another party may not be straightforward:If you lease your solar panels, selling them back to the installation company or another party may not be straightforward:
- Lease Terms: There are often no provisions for the establishment of the lease to allow the company to buy back the panels. However, the last terms allow the homeowner to at lease end, renew the lease, purchase the panels at a reasonable price, or request the company to remove them.
- Transfer of Lease: Sometimes it may be possible for you to assign the lease to the purchaser if for instance you are selling the home. As for this option, the solar energy system benefits the new homeowner as he or she assumes the lease.
Steps to Consider
If you’re contemplating selling your solar panels back to the company, follow these steps:If you’re contemplating selling your solar panels back to the company, follow these steps:
- Review Your Contract: Go over the solar panel installation contract or the lease and make sure whether you have the right to sell the panels or not.
- Assess Resale Value: It is also important to get quotes from other sources which you can use to gauge the future resale value of the panels. This could be their age, physical condition or current fashion trends that may exist at the time that the were recycled.
- Contact the Company: If interested in selling back and the money is via the installation company, get in touch with them and request to be informed on any buy back programs or options available to you.
- Consult with Professionals: Consult with the experts in solar energy to understand its costs involved or consult with legal advisors with knowledge in renewable energy laws.
Conclusion
The option of reselling is applicable to the homeowners who have their solar systems directly and free from any association with SolarCity; however, there is a probability of encountering the contractual aspects and some market conditions regarding the reselling process. Unfortunately, for the people who opted for leasing their panels, the choice could be even more restricted and usually range only with lease transfer and end of lease.
But again, one should seek legal advice, review the contractual provisions and assess the situation to establish the available options. Seeking advice from the professionals tends to be very useful in a way that you will be in a position to make informed decisions concerning the solar energy investment you are planning to undertake.
