Selling a House With Solar Panels in California: What Homeowners Should Know

Selling a House With Solar Panels in California

Solar panels are common on California homes, but selling a property with solar can sometimes be more complicated than homeowners expect. The biggest issue is usually not the panels themselves, but how the solar system was purchased or financed.

A system that is owned outright can be very different from one financed with a solar loan, leased from a solar company, or covered by a power purchase agreement.

Can You Sell a House With Solar Panels?

Yes. Homes with solar systems are regularly sold in California. However, the terms of the solar agreement may affect what needs to happen before or during the sale.

Before listing or selling the property, homeowners should determine whether the solar system is owned, financed, leased, or subject to another agreement.

What If the Solar Panels Are Owned Outright?

If the solar system has been completely paid for, the transaction may be relatively straightforward. The equipment is generally sold along with the property, subject to the applicable contracts, warranties, permits, utility arrangements, and other documentation.

Homeowners should locate the original solar paperwork and provide relevant information to the professionals handling the sale.

What If You Still Have a Solar Loan?

If money is still owed on a solar system, homeowners should contact the lender and obtain information about the loan before selling.

Depending on the financing agreement, the remaining balance may need to be paid, or there may be another process available when ownership of the property changes.

A solar loan may also involve a recorded lien or other financing arrangement affecting the property. If you are dealing with a recorded obligation, read our guide to selling a house with liens in California.

What If the Solar Panels Are Leased?

A solar lease generally means that a solar company owns the equipment while the homeowner makes payments under an agreement.

When the property is sold, the lease agreement may contain requirements concerning transfer, assumption, payoff, purchase of the system, buyer qualification, or other procedures.

The exact requirements depend on the contract, so homeowners should contact the solar provider early in the selling process.

What Is a Power Purchase Agreement?

Some homeowners have a power purchase agreement, often called a PPA. Under this type of arrangement, a solar provider typically owns the system and the homeowner purchases electricity generated by it according to the agreement.

Like a lease, a PPA may contain provisions that apply when the property is sold. Reviewing the agreement before entering into a sale can help identify what will be required.

Can Solar Financing Affect a Buyer?

Potential buyers and their lenders may want information about the solar system, including whether payments remain, whether an agreement must be transferred, and whether any recorded financing affects title.

Resolving these questions early can help reduce surprises during escrow.

What If the House Also Needs Major Repairs?

Some homeowners find themselves dealing with both an existing solar obligation and a property that needs substantial repairs. Paying for renovations while continuing to make solar payments may not make sense for every owner.

Read our guide to selling a house that needs major repairs in California.

What If the Property Was Inherited?

Heirs may inherit a property without knowing whether the solar system is owned, financed, or leased. Reviewing the deceased owner's paperwork and contacting the solar provider can help determine what obligations remain.

Learn more about selling an inherited house in California.

What If the Property Is Held in a Trust?

A trustee preparing a property for sale may also need to determine the status of an existing solar agreement and how it should be handled as part of the transaction.

See our information about selling a trust property.

Can You Sell a House With Solar As-Is?

A property can potentially be sold in its current physical condition even when it has a solar system. However, selling the house as-is does not automatically eliminate a solar loan, lease, PPA, lien, or contractual obligation.

The solar agreement and any associated financing still need to be reviewed and properly handled as part of the transaction.

All Cash Baby Buys Houses With Complicated Situations

All Cash Baby purchases qualifying properties throughout Southern California, including houses that need repairs or involve inherited-property, trust, lien, or other complicated situations.

If a property has an existing solar loan, lease, or other solar agreement, we can review the situation as part of evaluating the property and determining whether a direct purchase may be possible.

Learn more about how the All Cash Baby home-buying process works.

We purchase properties throughout Los Angeles County, Orange County, Riverside County, and San Bernardino County.

Get a Cash Offer for Your Property

If you own a Southern California house with solar panels and are considering selling, contact All Cash Baby. We can discuss the property, the solar arrangement, and your situation to determine whether a direct cash purchase may be an option.

There is no obligation to accept an offer.

This article provides general information and is not legal, tax, financial, lending, or solar-contract advice. Solar agreements and financing terms vary. Property owners should review their agreements and consult the solar provider, lender, title company, attorney, or other qualified professionals regarding their individual circumstances.