As more homeowners install solar panels, the odds of encountering a property with a solar energy system during a sale or purchase have increased significantly. For many buyers, solar offers long-term savings. For sellers, it can enhance property value. However, solar panels also introduce unique legal, financial, and logistical challenges. Whether you’re selling a solar-equipped home or considering buying one, it’s important to understand what you’re really getting into.
This guide covers what both parties need to know to make a clean, informed, and successful transaction.
Selling a Home with Solar Panels
Start by confirming how the solar system is financed. There are three common scenarios:
– Owned: The homeowner paid for the system outright or has fully paid off a loan. This is the cleanest setup to sell, and it typically adds clear value to the property.
– Financed: A loan was used, and the balance is still being paid off. The lien may need to be cleared or transferred before closing.
– Leased or Power Purchase Agreement (PPA): A third-party company owns the panels. The homeowner pays a fixed monthly fee or rate per kilowatt-hour. These agreements often require the buyer to assume the contract, which can complicate the sale.
Review your solar loan or lease balance. If the system is financed, decide whether you will pay off the balance before closing or transfer the loan to the buyer.
Gather materials early: contracts, proof of ownership, warranty info, utility bills. Homes with owned solar often sell for more. According to SolarReviews, homes with solar panels sell for about 6.9% more on average. A Zillow-backed analysis cited in the same report found an average increase of $25,000 to $29,000.
Buying a Home with Solar Panels
Solar panels typically last 25 to 30 years. Inverters often need replacement after 10 to 15 years
Ask the seller for past electric bills. Determine if you’re part of a net metering program.
Not all incentives transfer. The federal tax credit—officially known as the Residential Clean Energy Credit only applies to the original system purchaser
Shared Buyer/Seller Considerations
Both parties should review all solar contracts with a real estate attorney. Include solar system terms in the purchase agreement.
Some states require solar inspections or notice to the utility provider before transfer. Check local rules.
Conclusion
Solar panels can improve a home’s value, reduce utility bills, and appeal to energy-conscious buyers. But they also add layers of financial, legal, and technical complexity.
Sellers should prepare documents early and clearly disclose system details. Buyers should confirm ownership structure, analyze system performance, and review all contracts.
Whether you are buying or selling, a title company familiar with solar transactions can help ensure a smooth closing with no surprises.