Why would someone need to sell their photovoltaic (PV) system? Several reasons can stand behind such a decision, the most common being the need for liquidity and profits.
Yet – how do you do so? Where do you find buyers, how do you assess the price and how do you settle it? In the following article we will go through the three important steps to take when it comes to selling a PV system.
A photovoltaic system is a long-term, well-invested asset with a balanced risk-return profile- not only your wallet benefits from it, but also the climate. Therewith exist other good reasons to sell a photovoltaic system.
Reasons for selling
Short-term liquidity creation is the most common reason for selling. Circumstances can change and unplanned situations can arise, forcing you to “liquidate” your capital.
Generate profits: the demand for investment properties with a comparable risk-return profile significantly exceeds the supply: selling a photovoltaic system can be a lucrative option. The liquidity freed up by the sale is often used to invest in new photovoltaic systems using existing special tax advantages.
Save time and nerves: if your system is not near where you reside, if it creates more technical problems or if the administrative expense is greater than expected, you might want to part with it and sell it.
Regardless of your reason to sell, you will need to find a suitable buyer. Many people first ask their tax advisor to discuss concomitant tax implications. The plant manufacturer and acquaintances from their own family and circle of friends are also often approached, which can be a difficult constellation in sales and contract negotiations.
You can also hire brokers, but they should have experience in selling photovoltaic systems and should be paid a moderate brokerage fee. Check the brokerage agreement in advance to see whether it contains the frequently requested marketing exclusivity. This can prevent or impede the sale. Alternatively, you can rely on specialised online photovotlaic marketplaces such as Milk the Sun.
Three steps to selling your photovoltaic system:
On our online marketplace, sales are processed according to the following transferable scheme:
Determine fair market value
In order to sell your PV system, you have to determine the current market value. This is calculated by discounting future expected income and costs from the date of sale to the end of compensation at a comparative interest rate. You can make this calculation using the free Net Worth Calculator.
Undoubtedly, you want to get the highest possible price for your offer, but the buyer’s goals are also price-relevant. Potential buyers want to earn interest on their invested amount. If the system price has been calculated in such a way that the buyer can achieve a return in line with the market, and that you make good profit from the sale, you reach a win-win situation desirable for both sides.
Find a suitable investor
In our large network, there is a considerable competition among numerous investors, such as private and commercial investors, family offices, companies, funds or asset management companies.
Prepare the sales process properly
The alpha and omega of a successful sales process is the preparation. The first step is to check whether you are entitled to sell at all. You are only entitled to do so if a first-ranking right to use the roof or open space for the operation of a PV system is entered in the land register. If this is the case, you will need the entire documentation of the system, its documents and contracts, as well as relevant pictures of your system.
Milk the Sun is here for you throughout the entire sales process and provides you with competent advisors to help you answer questions and face uncertainties.