Question 1

How do I tell if the solar panels on a home I'm buying are owned or leased?

Accepted Answer

Ask the seller for the solar agreement. If they paid cash or financed with a solar loan, they own the system. If they signed a Power Purchase Agreement (PPA), a lease, or a prepaid PPA, a third-party company owns the equipment. The seller's most recent monthly statement will name the financing or PPA company. Escrow can also pull a UCC-1 search to confirm whether a third party holds a filing on the equipment.

Question 2

What questions should I ask the seller about their solar system?

Accepted Answer

Ask who owns the system, when it was installed, who installed it, what brand of panels and inverters are on the roof, whether there is a battery, what the system produces per year, whether the permit was closed and inspected, what warranties are still active, and whether any third party holds a financing or PPA agreement. Also ask for the most recent PG&E true-up statement and the monitoring login.

Question 3

What documents should I request from the seller about the solar?

Accepted Answer

The installation contract, the city permit and final inspection record, the interconnection approval from the utility, the equipment warranties for panels, inverters, and battery, the monitoring app login, the last 12 months of PG&E bills, the most recent true-up statement, and a copy of any loan, lease, PPA, or prepaid PPA agreement.

Question 4

Does buying a home with solar increase the purchase price?

Accepted Answer

Owned solar usually adds value to the home, especially in Sunnyvale, Mountain View, Palo Alto, Los Altos, and Cupertino where buyers expect efficient homes. Leased or PPA solar does not add value to the home in the same way because the equipment is owned by a third party. Appraisers and lenders treat these very differently.

Question 5

Can I get a mortgage on a home with a solar lease?

Accepted Answer

Yes, but you will likely need to assume the lease. Most major lenders will close on a home with a solar lease as long as the lease company allows the transfer and your credit meets their threshold. The lease payment is added to your monthly housing cost when the lender calculates what you can afford.

Question 6

Can I get a mortgage on a home with a PPA?

Accepted Answer

Yes. A PPA works like a lease for lender purposes. You must agree to assume the PPA and meet the PPA company's credit minimum. The lender will count your expected PPA payment when calculating your debt-to-income ratio. The seller cannot remove the equipment to make the home easier to mortgage unless they buy out the agreement first.

Question 7

Will the solar lender require lien removal before my mortgage closes?

Accepted Answer

If the seller has a solar loan, the lender's lien must be paid off at closing and released. If the seller has a lease, PPA, or prepaid PPA, there is no real lien on the home. There is a UCC-1 filing on the equipment, which transfers with the agreement. Your mortgage lender will want clear paperwork either way.

Question 8

What is a UCC-1 filing and how does it affect my home purchase?

Accepted Answer

A UCC-1 is a public filing that says a company has a security interest in a specific piece of equipment, like solar panels. It is not a lien on the home itself. It tells the world that the solar equipment belongs to the leasing or PPA company, not the homeowner. Most mortgage lenders accept this as long as the paperwork is clear and the agreement transfers cleanly.

Question 9

How does a solar PPA appear on the home's title or escrow report?

Accepted Answer

The PPA itself does not appear on the title. The third party will have filed a UCC-1 on the equipment, which will show in the preliminary title report. Escrow will require the PPA company to confirm the agreement and approve the transfer to the new owner before closing.

Question 10

What if the solar system has a remaining loan balance?

Accepted Answer

The seller pays off the solar loan at closing using the sale proceeds, the same way they pay off the mortgage. The loan lien is released and you take ownership of the panels free and clear. Make sure the payoff amount is included in the escrow statement.

Question 11

Should I assume the existing solar lease or PPA?

Accepted Answer

This depends on the contract terms, the remaining term, the monthly cost, the escalator rate, and how the system is performing. Compare the cost to your expected PG&E bill without solar. If the lease or PPA was signed at a low rate, it may be a good deal. If the escalator is steep or the term is long, it may not be worth keeping.

Question 12

How do I check if the solar system is still under warranty?

Accepted Answer

Ask the seller for the warranty paperwork. Panel manufacturers like Qcells offer 25 year performance warranties. Inverters from brands like Enphase carry 10 to 25 year warranties depending on model. Workmanship warranties from the installer typically run 10 to 25 years. Confirm the installer is still in business and willing to honor the workmanship warranty for you as the new owner.

Question 13

What is the typical solar panel warranty length?

Accepted Answer

Most modern solar panels carry a 25 year performance warranty and a 25 year product warranty. Premium panels like Qcells include both. The performance warranty guarantees the panel will still produce a minimum percentage of its rated output after 25 years.

Question 14

What is an inverter warranty and why does it matter to a buyer?

Accepted Answer

Inverters convert the solar panel's direct current into the alternating current your home uses. They typically have shorter warranties than panels. Microinverters like Enphase IQ usually carry 25 year warranties. String inverters often carry 10 to 12 year warranties. Inverters are the most common component to fail, so a strong inverter warranty matters more than panel warranty in many cases.

Question 15

How do I confirm the solar system is permitted and inspected?

Accepted Answer

Contact the city building department where the home is located. In Sunnyvale, Palo Alto, Mountain View, Los Altos, Cupertino, Santa Clara, San Jose, Redwood City, San Mateo, Menlo Park, Fremont, and surrounding cities, the building department keeps records of permit applications, inspections, and final sign-offs. Ask for the solar permit number and confirm it shows a final inspection.

Question 16

What is interconnection approval and why does it matter?

Accepted Answer

Interconnection approval is the document from PG&E (or CPAU or SVP) that says the solar system is approved to send power to the grid. Without it, the system may produce power for the home but the homeowner will not receive net metering credit. Always confirm interconnection approval before buying.

Question 17

How do I check the solar production history of a home?

Accepted Answer

Ask the seller for the monitoring app login. Most systems use Enphase Enlighten, SolarEdge, or similar platforms. The app will show monthly and yearly production. Compare it to the rated system size and the home's annual usage. Underproduction is a red flag.

Question 18

What if the previous owner's solar has been underperforming?

Accepted Answer

Underperformance can mean a few things: dirty panels, a shaded roof, a failing inverter, a tripped microinverter, or a system that was undersized in the first place. Get a professional inspection. Sometimes the fix is simple. Sometimes the system needs equipment repair or replacement, which the seller may be willing to credit toward at closing.

Question 19

Can I add battery backup to an existing solar system after I buy the home?

Accepted Answer

Yes. Battery backup can be added to most existing solar systems. The Tesla Powerwall 3 and Qcells batteries are common choices in Bay Area homes. See our Battery Backup page for what is involved and how it integrates with your existing equipment.

Question 20

Can I add an EV charger to a home that already has solar?

Accepted Answer

Yes. Adding a home EV charger usually requires a Level 2 (240 volt) circuit run from your electrical panel to the parking area. We can review your panel capacity and the install path. See our EV Chargers page for the top home chargers we install and current pricing.

Question 21

What if the solar panels need to be removed for a future reroof?

Accepted Answer

If the roof under the solar is approaching the end of its life, plan for solar removal and reinstallation when you reroof. The panels come down, the new roof goes on, and the panels go back up. See our Solar Panel Removal page for typical timelines and cost ranges. Reroofing without removing solar is not possible.

Question 22

How old should I let the roof be when buying a home with solar?

Accepted Answer

A composition shingle roof typically lasts 20 to 30 years. If the roof is older than 15 years when you buy and you want the solar to stay for the full 25 year panel life, you should plan for a reroof in the next 5 to 10 years. Factor that into your offer. See our Roofing page for typical reroof costs and timelines in Sunnyvale, Palo Alto, and the rest of our service area.

Question 23

Does Palo Alto utility (CPAU) accept solar PPAs or leases from the seller?

Accepted Answer

No. CPAU (City of Palo Alto Utilities) does not allow third-party-owned solar arrangements like PPAs or leases. Most of Palo Alto is on CPAU. A small number of Palo Alto homes are on PG&E. If you are buying a home in Palo Alto with a PPA or lease, the agreement will not transfer and the seller will need to buy it out before closing.

Question 24

Does Santa Clara utility (SVP) accept solar PPAs or leases from the seller?

Accepted Answer

No. Silicon Valley Power (SVP) does not allow PPAs or leases. Homes in Santa Clara on SVP must use cash or loan ownership for solar. If you are buying a home in Santa Clara, confirm the utility first.

Question 25

What happens to NEM 2.0 net metering when a home with solar is sold?

Accepted Answer

NEM 2.0 is grandfathered to the system, not the homeowner. When the home sells, the new owner keeps the NEM 2.0 status for the rest of the 20 year period from the original interconnection date. This is a real value to buyers because NEM 3.0 credits less for exported power.

Question 26

Will I keep the seller's net metering credit balance after closing?

Accepted Answer

That depends on PG&E's policy. Generally, the true-up cycle resets when the account changes hands, so any banked credits from the seller do not carry over to you. Talk to PG&E before closing if the credit balance is significant.

Question 27

What is the difference between NEM 2.0 and NEM 3.0 for a buyer?

Accepted Answer

NEM 2.0 pays close to retail rates for power your solar sends back to the grid. NEM 3.0 pays much lower rates, often 75 percent less for exported power. A home with grandfathered NEM 2.0 is more valuable than a home where solar would be added new under NEM 3.0.

Question 28

Can the seller transfer their solar credits to me at closing?

Accepted Answer

Usually no. NEM credits typically reset when the PG&E account changes ownership. Confirm with PG&E directly. If the seller has a large credit balance near true-up, they may be able to apply it before closing.

Question 29

Should I ask for the seller's most recent PG&E true-up statement?

Accepted Answer

Yes. The true-up statement shows the annual reconciliation of energy used vs. energy exported. It tells you how well the solar covers the home's actual usage. A small bill at true-up means the system is well-sized. A large bill means the system is undersized or the home uses more than expected.

Question 30

What is a true-up statement and how do I read it?

Accepted Answer

PG&E reconciles solar accounts once a year on the anniversary of the interconnection date. The true-up statement shows total energy used, total energy exported, and the net amount you owe or are credited. Look at the bottom line. If it is a small bill or a credit, the system covers most of the home's usage.

Question 31

How do I verify the solar production matches what the seller claims?

Accepted Answer

Compare the monitoring app data to the rated system size. A typical Bay Area system in our service area produces about 1,400 to 1,600 kilowatt-hours per kilowatt of installed capacity per year. If the production is lower, ask why. Shade, equipment issues, and orientation can all explain it.

Question 32

Should I hire a solar inspector before buying a home with solar?

Accepted Answer

Yes, especially if the system is older than 5 years or you suspect problems. A professional solar inspection covers panel condition, inverter health, wiring, attachment points to the roof, and the roof condition itself under the array. It is money well spent.

Question 33

What red flags should I look for on the roof under existing solar panels?

Accepted Answer

Visible water damage from inside the attic, rust at the panel mounting feet, dark streaks on the roof shingles around the array, missing or cracked shingles at the edges of the array, and any evidence of leaks. Solar attachments penetrate the roof and need to be done properly. Bad workmanship shows up here first.

Question 34

What if the seller installed the solar themselves (DIY)?

Accepted Answer

A DIY system is a yellow flag. Confirm the permit was pulled, the system was inspected by the city, and PG&E approved the interconnection. If those three records exist, the system is legitimate. If any of them are missing, the system may not be insurable and may need to be brought up to code.

Question 35

Can I get the solar system tested during the home inspection contingency?

Accepted Answer

Yes. Include a solar inspection in your contingency period. Most professional solar contractors will perform a system check for a fee. Use that report to negotiate repairs or credits before removing your contingency.

Question 36

What if there is damage or staining under the solar panels?

Accepted Answer

Damage under panels means the array needs to come down so the roof can be repaired or replaced. The seller should either fix it before closing or credit you for the cost of solar removal and reinstallation plus the roof work. See our Solar Panel Removal page for typical pricing.

Question 37

How do I confirm the seller paid off any HERO or PACE assessment?

Accepted Answer

Check the property tax bill. HERO and PACE assessments appear as a special line on the property tax statement. If the assessment is still active, it must be paid off at closing or assumed by you. Most lenders require it to be paid off.

Question 38

What is a PACE assessment and how does it transfer with the home?

Accepted Answer

PACE (Property Assessed Clean Energy) financing pays for solar, batteries, or other energy improvements through a special property tax line. It transfers with the home unless paid off at closing. Most mortgage lenders require PACE balances to be paid off before they will close.

Question 39

Will my property taxes go up if the home I buy has solar?

Accepted Answer

California has a solar property tax exclusion through January 1, 2027. The added value from owned solar does not raise your property tax during the exclusion period. Leased and PPA systems do not affect property taxes because the equipment is owned by a third party.

Question 40

Are there county-specific solar rules I should know in Santa Clara County?

Accepted Answer

Santa Clara County itself does not regulate solar at the county level for residential. The rules are set at the city level by each city's building department, and by the utility. PG&E serves most of the county. CPAU serves Palo Alto. SVP serves Santa Clara. The utility matters more than the county for PPAs and leases.

Question 41

Are there county-specific solar rules I should know in San Mateo County?

Accepted Answer

PG&E serves all of San Mateo County, so PPAs, leases, loans, and cash all work in Redwood City, San Mateo, Menlo Park, San Carlos, and Belmont. Each city has its own building permit process, but the financing options are uniform across the county.

Question 42

Are there county-specific solar rules I should know in Alameda County?

Accepted Answer

PG&E serves Fremont, Newark, and Union City, so all financing types work there. Each city sets its own permit process. The rules are similar to Santa Clara County's PG&E areas.

Question 43

What if the home has a Tesla Powerwall? Does it transfer?

Accepted Answer

Yes. A cash-owned or financed Tesla Powerwall 3 transfers with the home like any other appliance. If the battery is on a PPA or lease, it transfers with the agreement. Confirm the warranty status (Tesla Powerwall 3 includes a 10 year warranty) and ask for the Tesla app login so you can monitor it.

Question 44

What if the home has a Qcells battery? Does it transfer?

Accepted Answer

Yes. A Qcells battery transfers with the home. Cash and loan ownership transfer directly. Lease or PPA arrangements transfer with the agreement. Confirm the warranty and get the monitoring login.

Question 45

What if the home has solar plus a battery, does that complicate my purchase?

Accepted Answer

Slightly, but not in a bad way. Both systems just need to be reviewed during your inspection. Solar plus battery makes the home more resilient during power outages, which is a real advantage in Bay Area cities with PG&E Public Safety Power Shutoffs. Ask for both monitoring logins and warranty documents.

Question 46

Does selling a home with solar take longer than selling a home without?

Accepted Answer

Sometimes, but not always. Owned solar usually does not slow the sale. PPAs and leases can add a few days to closing because the lease or PPA company has to approve the buyer. In CPAU (Palo Alto) and SVP (Santa Clara) territory, a PPA or lease will need to be bought out before closing, which adds time.

Question 47

Do I have to disclose my solar system when I sell?

Accepted Answer

Yes. California law requires sellers to disclose any solar system on the property, including ownership type, loan or lease balance, and any UCC-1 filings. Your real estate agent will have a Solar Disclosure form for you to complete. Full disclosure protects you from post-sale claims.

Question 48

What solar paperwork do I need to gather before listing?

Accepted Answer

The installation contract, the city permit and final inspection record, the interconnection approval, the warranties, the monitoring app login, the last 12 months of PG&E bills, the most recent true-up statement, and any loan, lease, PPA, or prepaid PPA agreement. Having these ready cuts days off closing.

Question 49

Can my realtor list my home as "solar included"?

Accepted Answer

Yes. Owned solar should be listed as a feature. Leased or PPA systems can still be marketed positively, but the listing should be clear that the system is third-party owned and the buyer must assume the agreement. Honesty here prevents problems in escrow.

Question 50

Will my solar system add to my home's appraised value?

Accepted Answer

Owned solar usually adds value, though the amount depends on the system size, age, and the appraiser's familiarity with solar. Leased and PPA systems do not add appraised value because the equipment is owned by a third party. The appraiser may treat the lease payment as an obligation transferred with the home.

Question 51

Do Bay Area appraisers give credit for owned solar?

Accepted Answer

Most do, especially in markets like Sunnyvale, Mountain View, Palo Alto, Los Altos, and Cupertino where solar is common. Provide the appraiser with the installation cost, the system size, the production data, and the warranty paperwork. A well-documented system gets more credit.

Question 52

Do appraisers give credit for PPA or leased solar?

Accepted Answer

No. The equipment is not yours to sell, so it does not factor into the appraised value of the home. The PPA or lease payment is treated as a monthly obligation that transfers with the home.

Question 53

Should I pay off my solar loan before listing?

Accepted Answer

Not necessarily. The loan will be paid off at closing from your sale proceeds, the same way your mortgage is. Paying off early only matters if cash flow is tight or you want to remove the UCC-1 filing before showings. Most sellers leave the payoff to escrow.

Question 54

Should I buy out my solar lease before selling?

Accepted Answer

It depends. If your buyer is comfortable assuming the lease and meets the credit threshold, leaving the lease in place is fine. If your home is in CPAU (Palo Alto) or SVP (Santa Clara) territory, you must buy out the lease before closing. Buyout cost depends on the remaining term and the panel value.

Question 55

Should I buy out my PPA before selling?

Accepted Answer

Same answer as the lease. If the buyer can assume and the utility allows it, leave it in place. If the home is on CPAU or SVP, buy it out. If the buyer is hesitant about the PPA, buying it out can keep the deal alive.

Question 56

How do I get a buyout quote on my solar lease or PPA?

Accepted Answer

Contact the lease or PPA company directly. They will calculate the buyout based on the remaining payments, the fair market value of the equipment, and any contract terms. Buyout quotes can take 1 to 4 weeks. Request the quote early in your selling process.

Question 57

What is a typical solar lease buyout cost?

Accepted Answer

It varies widely. Buyout costs range from a few thousand dollars to over twenty thousand depending on system size, age, and contract terms. The buyout is usually lower in the second half of the contract because the equipment has depreciated.

Question 58

What is a typical PPA buyout cost?

Accepted Answer

PPA buyouts work similarly. The cost depends on remaining contract years, the kilowatt-hour rate, and current fair market value of the equipment. Expect somewhere between a few thousand and twenty thousand dollars for a typical residential system. Get the exact quote from the PPA company.

Question 59

How long does a PPA buyout take to process?

Accepted Answer

Plan for 2 to 6 weeks from the quote request to completion. Some companies move faster. Build this into your selling timeline so it does not delay closing.

Question 60

Will my buyer's lender require my solar lien to be removed?

Accepted Answer

If you have a solar loan, yes. The loan lien must be paid off at closing. If you have a lease, PPA, or prepaid PPA, there is a UCC-1 on the equipment but not a lien on the home. Most lenders accept UCC-1 filings as long as the paperwork is clear and the agreement transfers cleanly.

Question 61

What if my buyer's lender refuses to close with the solar UCC-1 in place?

Accepted Answer

Some lenders are stricter than others, especially on jumbo loans. If the lender will not close, your options are: switch the buyer to a different lender, buy out the agreement, or get a subordination agreement from the solar company. Your escrow officer can help coordinate.

Question 62

Can the new buyer assume my solar lease?

Accepted Answer

Usually yes, if the buyer's credit meets the leasing company's threshold (often a FICO of 680 or higher) and the home is in a utility that allows leases. CPAU and SVP do not allow lease transfers.

Question 63

Can the new buyer assume my PPA?

Accepted Answer

Same as a lease. Yes if their credit qualifies and the utility allows PPAs. The PPA company will run the credit check and approve the transfer.

Question 64

What credit score does the buyer need to assume a solar lease or PPA?

Accepted Answer

Most lease and PPA companies require a FICO score of 680 or higher. Some accept 650. Confirm the threshold with your specific lease or PPA provider before you list.

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