Buying a home that is 2 years into a solar loan

[calihomeowner]

We are at the end of escrow and are assuming the sellers solar loan, 17 years left, approximately $14k balance. Was placed through Solar City and loan with Mosiac. Payment looks to be a stable payment of $104/mo. Home is 2 story, 1700 sq ft and has an inground pool (no heater) they say their electric bill runs $24/mo. I was reading about tru up charges at end of year. We will go through with home regardless. But wanted to get input on if our situation is good / bad? We would maybe consider paying off when/if we are able to in the near future.

[solar pete]

Hi calihomeowner and welcome to solar panel talk, this is a subject that a few of our members have some experience with. Leased systems typically are the worst way to get solar on your roof and Solar City are a notoriously bad company to deal with, but it seems that it might be too late for you to negotiate with the sellers to pay the loan out, that would have been my position, I would have insisted that the vendor pay out the lease prior to you taking ownership, good luck with it all, cheers.

[J.P.M.]

If you're going through with it regardless, why bother asking if it's a good deal or not ? It is what it is now.

[Ampster]

We are at the end of escrow and are assuming the sellers solar loan, 17 years left, approximately $14k balance.

If this is truly a loan then you own the system. If that is true then the important question is what are the terms, other than what you have already explained? What is the effective interest rate and can you prepay it? If it is a loan I would only only suggest prepayment if your marginal cost of funds is less than the interest rate being charge and the prepayment penalty, if any, is insignificant.

[Mike90250]

If it's truly a loan, you should be ok. If it's a lease and they are saying loan, you will find out in 17 years how screwed you are

[Ampster]

If it's truly a loan, you should be ok. If it's a lease and they are saying loan, you will find out in 17 years how screwed you are

If they said it was a loan and it is a lease the seller or their agent have a major disclosure problem. If so you may have a reason to request an adjustment in the selling price. They should have also given you a copy of the document. Also look on the title report to see how it was disclosed.