Solar Energy and Title Insurance
Posted by Hector Torres at Sep. 10, 2019
|Solar Energy and Title Insurance|
|By Barbara Pronin|
|As more and more states, local governments, and consumers ponder the use and benefits of solar energy, new questions are arising - including questions about what title actions need to be taken with regard to solar projects.
First, let’s look at the difference between solar easements and solar leases.
Solar easements, like all property rights granted by the homeowner to a third party, allows a third party to construct solar panels on a landowner’s property for their access and/or use and to bar the landowner from blocking their access to direct sunlight. Some states have legally permitted the creation of solar easements. In such cases, title insurance becomes a critical tool for establishing and enforcing them.
Solar leases, on the other hand, present different complications with regard to title insurance. Since the property owner leases solar equipment from a business and attaches it to the property, when the owner wishes to sell or refinance the property, one of two issues may arise:
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.
This material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. The material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy.