In Virginia, solar energy continues to rise in popularity as more people seek to improve their environmental footprint and find alternatives to traditional energy usage. In addition to reducing or eliminating a home’s monthly electricity bill, solar saves money and adds value to your home.
But what happens with solar panels and their associated accounts when a homeowner moves?. If you are selling your house, you might be wondering what will become of your solar renewable energy credits (SRECS). Here is what you need to know, including what paperwork will be involved, and who gets to benefit from the continued energy generation of the system.
What Are SRECs?
First, here’s a reminder of what SRECs are. A Solar Renewable Energy Credit is created every time your solar energy system generates 1000kWh of electricity. These credits can be sold on the SREC market by a broker, such as Sol Systems. After you’ve created your account with your broker, your SRECs will be sold for you and you’ll receive payment. You can read more about SRECs here.
What Happens to SRECs After Selling Your House?
Those who are selling their homes often wonder how the SREC program works as they change residences. After all, they were the ones who invested in the solar panels, and may wonder if they will continue to receive SREC payments based on those panels.
However, the rights to SRECs are assigned to the owner of the solar system that is producing the energy. When a person sells their home, their solar account and the attached solar array are reassigned to the new homeowner when they take ownership of the property.
This means that the new owner will also be the one receiving compensation for any generated SRECs following the sale, and the former owners will stop receiving compensation for that specific array. They may install panels at their new location and set up a new SREC account.
How to Transfer SRECs During Ownership Changes
Transferring ownership of an SREC account is typically a simple function. Begin by contacting the customer service team of the SREC broker where your system is registered. Most will require that the homeowners who are moving out provide their street address, personal details, and information about the new homeowner.
They will also typically request the closing date for the property allowing service to be transferred appropriately. This may also require copies of important closing documents such as the deed or title transfer.
The solar company will want the documents that contain the signatures of both the existing and new owners to validate the change in ownership. This process may take a couple of weeks during which the solar array will remain functional.
Get Comprehensive Solar Panel Installation from the Professionals
Solar panels provide multiple advantages, and the SREC program is just one of them that keeps money in a homeowner’s pocket as a result of renewable energy generation.
However, SRECs remain with the person who owns the solar array—and during a house sale, the new owner will take over the SREC account. Still, this does not prevent the previous residents from investing in a solar array for their new residence, a task best left to professionals who can do the job right the first time.
The team at Ipsun Solar creates personalized solar panel solutions that address a home’s needs based on available space, existing shade, and numerous additional factors. Contact us to get started on a solar quote that is customized for your goals.