Hi there,
Solar panels have become increasingly common on homes throughout Tucson and the surrounding areas. While they can offer energy savings and environmental benefits, they can also add complexity to a real estate transaction. Whether the system is owned or leased makes a significant difference in how the sale process unfolds.
Understanding these differences early can help you avoid surprises later in the buying or selling process.
Owned vs. Leased Solar Systems
When solar panels are fully owned by the seller, the transfer is usually straightforward. The buyer simply takes over ownership of the system along with the home. In many cases, the buyer may also assume any remaining warranty or maintenance agreements.
Leased or financed systems are more common and often more complicated. These arrangements typically involve a third-party company that owns the panels. The homeowner pays a monthly fee or agrees to purchase the power produced by the system. When the home sells, these agreements usually need to be addressed before closing can occur.
What Happens During a Sale
Most solar lease or power purchase agreements require one of the following when a home is sold:
- The buyer must be approved by the solar company and assume the existing lease or agreement.
- The seller must pay off the remaining balance of the system so it can transfer free and clear to the buyer.
Either path can affect timelines and costs. Buyers may need to go through a credit review, and sellers may need to pay a significant amount to remove the lien or obligation from the property.
Why This Matters in Tucson
Many homes in the Tucson area were built or upgraded with solar in recent years. Because our sunny climate makes solar an attractive option, these systems are now appearing in a growing number of transactions. Buyers who are not prepared for the process can face delays, and sellers who have not reviewed their agreements in advance may be surprised by the steps required to close.
What Buyers and Sellers Should Do
If you are buying a home with solar panels, ask for a copy of the solar agreement early in the process. Review the terms to understand whether the system is owned or leased and what will be required at closing. It is also wise to confirm whether any warranties or performance guarantees will transfer with the home.
If you are selling, contact your solar provider well before listing your home. They can explain your options and help you understand the financial and timing implications of transferring or paying off the system.
A Practical Recommendation
Solar agreements are legal contracts. I encourage anyone buying or selling a home with solar to have the documents reviewed by their agent and, when needed, by a qualified attorney or solar specialist. This helps ensure everyone understands the obligations before moving forward.
Would you like help reviewing the solar documents for a home you are considering, or are you preparing to list a property with solar panels? I am happy to walk through the details with you and help coordinate next steps with the solar provider.
Please feel free to call or text me at (520) 400-9466 or email me at AGirard@LongRealty.com.
Warmly,
Alicia Girard
Long Realty | Long 1926 Circle of Excellence
Top Producing Tucson Real Estate Agent
(520) 400-9466