South Brunswick Township, NJ · Member since 2020 · 10 posts · 3 votes
Hi All,
Hope everyone is having a good time with family over the thanksgiving weekend.
I'm currently under contract for an investment property with EOL (End of Life) roof and has an existing solar panel on lease for next 25 years. Solar panels were installed 3 years ago. I was told by agent that usually solar panel roofs have a good life on them but inspection revealed its at end of life based on number of years. Did anyone had a similar situation and what is the suggested best next action ?
Property is 1960 construction and in addition to EOL roof, HVAC is also almost end of life. I'm thinking to go re-negotiate sale price and ask for further reduction ~ $ 20K.
Also check with solar company what is the cost associated if they have to come down and remove the panels and then put them back after roof is fixed. Home is otherwise in decent condition.
Welcome any follow up questions or suggestions from fellow BP members.
Realtor · Asbury Park, NJ · Member since 2019 · 63 posts · 44 votes
3y
Hey Abhay,
I recently dealt with Sun Run as a solar provider of leased panels for sale in NJ. The seller's had a 20 year lease, however there were 8 yeasr left in the lease. The roof was dated and needed a repair, the first customer service rep stated they covered removal and replacement if roof repairs were needed. When we got to the transfer of the lease we were told they only cover the first 10 years, and charge over $100/panel to remove them for service after year 10. Needless to say, with over 40 panels on the roof, the removal and reinstallation would be costly so we needed to negoiate a credit.
I would reccomend getting everything in writing and carefully review the agreement. They should have never put solar panels on a roof that was that old in the first place, so they may have some liability (good luck going after them).
Additionally, you want to know what happens when the lease is up, for example what party is responsible for the removal and disposal of these panels as some have hazardous materials in them and can be costly to recycle. Best of luck to you.