The Hidden Complexities of Buying or Selling a Home With Solar Panels
Solar panels can cut energy bills, shield homeowners from rising utility costs, extend roof life, and even boost a home’s resale value — with buyers sometimes paying $15,000+ more for solar-equipped properties. But from a real estate and closing perspective, they can also complicate transactions — and in some cases, derail them entirely.
To address these challenges, the Northern Virginia Association of Realtors added two new solar panel addendums to standard contracts in 2023, underscoring how common these issues have become. Buyers and sellers should carefully review the following before proceeding:
Key Questions to Ask Before Closing
Ownership or Financing – Is the system owned outright, or subject to a lease, power purchase agreement (PPA), or loan? Owned systems are simpler to transfer, while financed ones can add major hurdles if buyers must assume payments or qualify under existing terms.
Manufacturer & Warranty – Who made and installed the panels? Are they reputable, still in business, and standing by their warranty?
Age & Maintenance – How old is the system, what upkeep is required, and how well has it been maintained?
Insurance Impact – Can the property be insured with the system in place, and will premiums rise?
Real Savings – Review a full year of power bills to estimate actual savings based on usage.
Utility Connection – Confirm how the system ties into the grid, whether net metering is allowed, and review the utility agreement.
Tax Credits – Clarify eligibility, especially if the system is leased or financed.
Documentation – Obtain complete records of purchase, installation, and warranty terms.
Special Considerations for Leased or Financed Systems
If the system isn’t owned outright, the seller typically must (1) buy it out, (2) pay termination fees and address roof repairs if panels are removed, or (3) transfer the agreement to the buyer — often requiring a credit check, lender approval, and transfer fees. Buyers should also verify:
Current and future payment rates and any annual escalators.
Remaining contract term and early termination costs.
Transfer process requirements and lender conditions.
Bottom Line
Solar systems can add value — but only when buyers and sellers understand the contractual, financial, and practical realities. Asking the right questions early prevents last-minute surprises, unexpected costs, and even failed closings.
