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Can You Transfer Solar Panels When Selling Your Home

Can you Transfer Solar Panels When Selling Your Home
Date: May 15, 2025
Tags: Family-Focused Homeowner

Solar panels are a big investment offering substantial long-term savings and environmental benefits, but they don’t have to tie you to a single location for the rest of your life. In fact, renewable energy systems often add major appeal for potential buyers looking to cut utility costs and live more sustainably. Depending on your initial financing agreement, selling a home with solar panels may be easier than offloading a grid-dependent property. Join us to learn how solar panels can impact the sale of your home. 

Understanding the Impact of Solar Panels on Home Value

Before selling a home with solar panels, it’s essential to understand how a renewable energy system affects your property’s resale value. 

How Solar Panels Increase Home Value

Like traditional home renovations, updated appliances, and smart home features, solar panels are considered an upgrade, attracting eco-conscious buyers who understand their inherent value. All things being equal, in a given neighborhood, if two similar homes are for sale, one with solar and one without, the home with solar will offer lower energy and operating costs. That will always be a compelling selling point.

One SolarReviews study found that homes with solar panels may sell for as much as 13.1% more than those without. According to a 2025 SolarInsure study, renewable energy systems can boost property values up to 10%. But solar panels don’t merely increase property values — they also help homes sell as much as 20% faster than comparable listings without solar. 

The Appeal of Solar-Equipped Homes

Prospective home buyers are often willing to pay a premium for highly efficient homes that promise long-term savings and greater energy independence. Thanks to rising utility rates and more frequent extreme weather events affecting grid-sourced power, eco-conscious shoppers are prioritizing efficiency more than ever. 

Ongoing savings are another selling point for homes with solar panels. Renewable energy can slash monthly utility bills up to 100%, and net metering programs can further enhance returns by selling surplus electricity back to the utility provider. Even when new homeowners inherit a solar array that’s paid in full, they may be able to claim property tax exemptions and other local incentives.

Buyers who plan to sell their new home in the near future can also look forward to faster sales and higher offers with the help of solar panels. 

Navigating Ownership Transfer When Selling

Before you transfer solar panels to the new owner, you must have a solid grasp of the conditions of your array’s initial purchase or lease agreement. 

Understanding Ownership vs. Leasing 

The financing method you choose when installing a solar array directly impacts the conditions surrounding the sale of your home. A purchased system that you’ve paid off completely is a valuable asset. This setup is highly attractive, as potential buyers inherit all the benefits of solar energy without ongoing payments. When selling a home with solar panels, buying the array is in your best interest. 

If you’ve purchased an array that you’re still paying off, you may need to settle the remaining balance or find a buyer willing to take over payments. In some cases, your lender may file a UCC-1 financial statement, which can interfere with a smooth transfer of solar panels. 

A solar lease or power purchase agreement (PPA) can help homeowners embrace renewable energy without hefty upfront investment costs, but these systems may complicate future home sales. When you lease solar panels, you enter into a long-term agreement with your solar provider. Some home buyers may hesitate to adopt an existing lease agreement, feeling that ongoing payments eat away at the savings offered by solar panels. Since solar leases require homeowners to meet certain credit conditions, not all buyers may qualify, further complicating the transaction. However, you can make the offer more attractive by paying off the remaining balance, offering energy savings for the duration of the contract without additional payments. 

Steps to Transfer Solar Panels 

Whether you purchased or leased your system, you’ll follow the same general steps to transfer solar panels to the new owners: 

  1. Determine ownership status: Pull documentation for your system to verify proof of purchase or lease agreement, financing terms, warranties, and other relevant information. 
  2. Be transparent with buyers: Inform real estate agents and potential buyers of all relevant details of the solar array. They should know who installed the system, its age, average performance data, and information on any existing warranties. 
  3. Coordinate with your solar provider: The solar company must initiate the transfer process for leased arrays and PPAs. Home buyers must pass a credit check, assume the lease, and sign additional documents at closing to take over the agreement.
  4. Include solar in the sales contract: Purchased arrays must be included in the sales contract for your home, transferring ownership to the buyers. 
  5. Notify the utility company: When selling a home with solar panels, inform your utility provider of the change of ownership, especially if you previously participated in net metering programs or other interconnection agreements. 

Legal Considerations When Selling a Solar-Equipped Home

Ownership status will impact the process of selling a home with solar panels. Let’s discuss a couple of key considerations to keep in mind: 

Preparing Necessary Documentation

Buying any new home can feel overwhelming, and an unfamiliar solar panel array can make the transition even more daunting for some. However, providing comprehensive documentation can instill confidence in potential buyers. This paperwork should include: 

  • Proof of ownership or lease agreement
  • Warranty information
  • Performance reports
  • Permit and inspection records
  • Utility interconnection agreement

Transparency is key when selling a home with solar panels. Disclosing all relevant information up front can help you avoid misunderstandings and potential delays during the transaction. 

Understanding Local Regulations

As you prepare to transfer solar panels to new owners, maintain a solid understanding of local regulations regarding these transactions. Your state, utility company, and HOA board may all require homeowners to adhere to certain guidelines when transferring solar ownership, so ensuring compliance will help facilitate a smooth transaction. In some cases, states with robust solar access laws might make it easier to complete the process without major obstacles. Before listing your home on the market, reach out to your HOA, utility provider, and solar company to learn about any stipulations, so you can move forward with all relevant information. 

Emotional Aspects of Selling a Home with Solar Panels

For many homeowners, the journey to greater sustainability with solar involves lots of research, planning, and contemplation of energy consumption habits. Renewable energy systems represent more than energy savings; they symbolize personal values, forward thinking, and environmental stewardship. While it can be hard to say goodbye to your investment, you can use this passion as a selling point for your property. 

You may not interact with potential buyers until closing day (if at all). Still, informative materials highlighting the benefits of renewable energy and the satisfaction of watching your environmental impact shrink can be compelling for eco-conscious buyers. 

Communicating Benefits to Potential Buyers

Not all potential home buyers understand the benefits of solar panels, so strategically marketing your array is crucial to earn the highest possible sale price. 

Highlighting Energy Savings and Environmental Impact 

One of the first steps to selling a home with solar panels is ensuring your real estate agent understands the intrinsic value of renewable energy. Before your listing goes live, sit down with your agent to discuss how buyers can benefit from a solar panel system through long-term energy savings, increased home values, and enhanced sustainability. Communicating these advantages will ultimately help buyers see exactly what they stand to gain by purchasing your home. 

Addressing Common Buyer Questions 

Many potential buyers have the same general questions about solar panels during a home sale, such as:

  • How does the system work?
  • How long will the system last?
  • What maintenance will I need to perform? 
  • What happens if production drops or damage occurs?
  • How do I monitor performance?
  • Will I still have a utility bill?
  • How much can I expect to save in the short and long term?
  • Can I add backup battery storage or expand the array?

Consider creating a fact sheet covering the basics of your solar panel system and addressing these questions to help buyers feel more confident making an offer. 

Enhancing Marketing Strategies with Solar Panels

Listing a solar-equipped home presents a unique opportunity to stand out in the real estate market. Here’s how you can use your renewable energy system to your advantage: 

Using Solar as a Selling Point 

Your real estate agent is likely responsible for writing your home’s property description. Along with professional photographs, this sales copy is the first impression potential buyers have of your home, so it should emphasize the benefits of solar that they can enjoy. You may encourage your agent to lead with your home’s efficiency, including attention-grabbing features in your listing title, such as “Monthly Utility Bills Under $50!” or “Energy-Efficient Solar Home!”

Consider adding a Solar Snapshot to your listing, highlighting the specifications of your system, average monthly savings, warranty information, and other benefits like tax exemptions and net metering programs. 

If you purchased your array or paid off the remainder of your lease or PPA, make sure that information is front and center, emphasizing how buyers will reap all the perks of solar without ongoing payments. 

Showcasing the Solar System During Open Houses 

An open house is a great opportunity to create an engaging narrative around your solar investment. For many, solar panels are a novel addition to any home, so buyers will be curious about why you chose to go solar and the benefits you’ve enjoyed. Offer fact sheets about the specifications of your array or ask your solar company for a stack of pamphlets highlighting the perks. 

Maximize Your Home Sale with Solar Panels

Whether you’re just beginning your journey to sustainability or you’re about to sell your solar-equipped home, the team at Solar Energy World is here to assist! Contact us today to learn how we can help you maximize savings and get the highest return on your investment!nt and your monthly utility bills? The team at Solar Energy World is here to help. Get a free solar estimate today to get started!

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