Buying a Home with Solar Panels: What to Check Before Making an Offer
In today’s real estate market, one trend is splitting buyers into two camps: homes with solar panels.
For some, a solar-equipped home represents the future — a smart, eco-friendly investment with lower electric bills and long-term savings. For others, it’s a potential headache filled with questions about ownership, maintenance, and financing.
With more sellers showcasing solar as a major selling point, buyers are faced with an important question: Are solar panels a true value-add — or a hidden complication?
If you’re considering buying a home with solar power, understanding what’s behind those shiny rooftop panels is essential. From lease agreements and energy savings to warranties and lender rules, there’s more to solar than meets the eye.
Here’s what you should check before making an offer on a solar-powered home.
1. Understand the Ownership: Are the Panels Owned or Leased?
This is the number one question to ask when considering a solar home.
Owned Panels: If the homeowner paid for the solar panels outright, congratulations — they come with the home, and you’ll enjoy lower utility bills without additional payments.
Leased Panels: If the panels are leased, the situation gets more complex. You’ll need to review the lease agreement and decide whether you’re willing to take over the contract.
Power Purchase Agreements (PPA): Some systems are installed under PPAs, where you buy the electricity the panels produce at a set rate, rather than owning the panels themselves.
Before making an offer, request documentation on ownership status, lease terms, and transferability.
2. Review the Lease or Loan Terms
If the solar system isn’t owned outright, find out:
How many years remain on the lease or loan?
What are the monthly payments?
Is there a buyout option — and at what cost?
Can the lease be easily transferred to a new owner?
Some solar companies make it simple to transfer a lease, while others require credit approval or hefty transfer fees. Make sure you understand these details upfront, as they can affect your mortgage approval and long-term affordability.
3. Check for Maintenance Responsibilities and Warranties
Solar panels generally require minimal upkeep, but they aren’t maintenance-free.
Ask for:
Maintenance records to confirm regular servicing.
Manufacturer warranties — many panels come with 20–25-year coverage, while inverters often have shorter warranties.
Roof warranty compatibility — ensure the solar installation didn’t void your roof’s warranty.
If repairs are needed in the future, clarify who pays for what — you, the solar provider, or the previous owner’s warranty coverage.
4. Evaluate Energy Savings and Utility Bills
Don’t assume that “solar” automatically means huge savings.
Request the seller’s last 12–24 months of electric bills to get a real picture of the home’s energy performance. Compare:
Average monthly energy production
Utility company buyback or credit policies (net metering)
Seasonal variations in energy output
This data helps determine whether the panels meet the home’s energy needs — and if they’ll continue to be cost-effective based on your household’s usage.
5. Understand Local Regulations and Incentives
Solar ownership can be affected by state and local policies.
Research:
Whether the area offers solar tax credits, rebates, or incentives
The utility company’s net metering policies (some states have scaled them back)
Any HOA restrictions or zoning regulations on solar panel ownership
A local real estate agent or solar energy consultant can help you interpret these details so you know what benefits (or limitations) apply to your new home.
6. Inspect the System’s Age and Condition
Solar technology has improved dramatically over the past decade. If the panels are 10+ years old, they may be less efficient or nearing the end of their warranty period.
Hire a qualified solar inspector — not just a general home inspector — to check:
The system’s age and expected lifespan
Wiring and inverter condition
Roof attachment points and potential for leaks
Compliance with current electrical codes
A professional inspection can uncover costly surprises before you finalize the deal.
7. Verify the Impact on Home Value and Insurance
Solar panels can increase resale value — studies show homes with solar often sell faster and for more money. However, there are nuances:
Some appraisers and lenders may value leased systems differently than owned ones.
Insurance costs can vary — check with your provider to confirm coverage for roof-mounted solar equipment.
Understanding these factors ensures your investment truly adds value instead of complexity.
8. Confirm Transfer of Warranties, Permits, and Documentation
Ask the seller to provide all documentation related to:
The solar installation permits and inspection approvals
Manufacturer and installer warranties
System specifications and maintenance logs
Any monitoring software or app credentials
Having this paperwork ensures you can maintain, service, and claim warranties on the system after closing.
9. Discuss with Your Mortgage Lender Early
Some lenders treat leased or financed solar panels as a form of debt that can affect loan qualification.
If the system is leased, your debt-to-income ratio might be impacted.
If owned, the system may increase appraised home value, improving loan terms.
Be upfront with your lender early in the process so they can guide you on how the solar system might affect your financing.
10. Get Professional Advice Before Closing
Buying a home with solar involves more paperwork and due diligence than a traditional home purchase. It’s wise to:
Consult a real estate agent experienced in solar transactions
Have your real estate attorney review lease or loan agreements
Hire a solar energy expert for inspection and performance analysis
Their expertise can help you avoid hidden liabilities and ensure the solar system works in your favor — both financially and environmentally.
Conclusion
The rise of solar-powered homes is transforming the housing market — but it’s also creating a new layer of complexity for buyers. A home with solar panels can offer incredible long-term savings and sustainability benefits, but only if you understand what you’re buying.
Take time to verify ownership, check warranties, review energy performance, and consult experts who know solar real estate. Doing your due diligence now will protect your investment and ensure your new home delivers on both savings and sustainability.
In short, don’t let the excitement of “going green” overshadow the fine print. With the right information, you’ll not only buy a home — you’ll invest in a smarter, more energy-efficient future.