Selling Your Home With Solar Panels? Read This First

When you were sold solar, the salesperson may have told you it would increase your home's value and make it easier to sell. For many homeowners, the reality has been exactly the opposite.

The Three Types of Solar Agreements and How They Affect Sales

Owned systems (cash purchase or paid-off loan): These generally add value and don't complicate the sale. The panels transfer with the home like any other fixture. Buyers often view owned solar positively as a cost-saving feature.

Active solar loans: The loan must be addressed at closing. The seller can pay it off from proceeds, or the buyer can assume it (if the lender allows). Many buyers are reluctant to assume a solar loan, especially if the remaining balance is high or the terms are unfavorable.

Solar leases and PPAs: These are the most complicated. The panels belong to the leasing company, and the lease must be transferred to the buyer, bought out, or the panels must be removed. Many buyers don't want to assume a 15-year lease obligation, and lenders may not finance homes with certain lease structures.

Why Buyers Are Often Reluctant

Buyers who encounter a solar lease or loan during a home purchase face a set of questions they often can't answer quickly: Is this a good deal? What are the escalators? What happens if the company goes out of business? Will my lender allow this?

When buyers can't get clear answers, they often walk away or demand a price reduction to offset the solar obligation. This is not a reflection of solar technology — it's a reflection of the complexity and opacity of solar agreements.

What to Do Before You List

Before listing your home, get a clear picture of your solar obligation: the remaining term, the current payoff amount, the transfer process and fees, and any escalator provisions. Share this information proactively with your real estate agent so they can address buyer questions accurately.

If the solar agreement is a significant obstacle to the sale, consider whether a buyout or negotiated resolution with the solar company makes financial sense. The cost of resolving the solar issue may be less than the cost of a reduced sale price or a failed transaction.