Solar Panel Pitfalls: What Homeowners Need to Know Before Buying
As a homeowner, you might be tempted by solar panel salespeople pitching the benefits of going solar—lower energy bills, eco-friendly living, and even potential earnings from excess power. But before you sign on the dotted line, there’s a critical issue you need to consider, one that recently came up with one of my real estate listings in Venice, Florida.
I’m currently working with buyers who are under contract for a home equipped with solar panels. As they shopped for homeowners’ insurance, they hit a surprising roadblock. Several insurance companies, including their top choice, refused to offer standard rates for the property. Why? Because the home is sending excess power to Florida Power and Light (FPL), and FPL is compensating the homeowner for it. This arrangement led some insurers to classify the property as commercial rather than residential, despite it being a 100% residential home in the heart of a Venice community.
This classification can significantly increase insurance premiums or even limit your insurance options, potentially costing you thousands over time. While solar panels have undeniable benefits, this experience highlights a lesser-known downside that could impact your home’s insurability and overall value.
I’m not a solar panel expert, but this situation is a wake-up call for any homeowner considering solar. Before investing, do your homework. Research how solar panels might affect your insurance rates, property classification, and long-term costs. Speak with your insurance provider, consult with solar experts, and weigh the pros and cons carefully. Going solar can be a great decision, but only if you’re fully informed about all the implications.
Have you encountered similar issues with solar panels, or are you considering installing them? Let’s discuss in the comments—I’d love to hear your thoughts!
Disclaimer: I’m not a solar energy expert. Always consult professionals for advice tailored to your situation.
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