Owned, financed, leased, or PPA
An owned, paid-off system usually transfers with the house like any other fixture. A system with a loan may need to be paid off at closing, or may have a lien or fixture filing recorded against the property that your title company will flag. A lease or PPA is a contract with a third party: you’ll generally have to qualify with that company and assume the remaining term, or the seller must buy it out.
None of these is automatically bad. A lease with a fair rate and no escalator can be fine. A lease with years left and a 3% annual escalator deserves a close read, because that payment grows every year you own the home.
Documents to request before closing
Ask for: the purchase contract or lease/PPA agreement; any loan payoff statement; the utility’s interconnection approval; the building and electrical permits and final inspection; equipment warranties and any workmanship warranty, with transfer instructions; and 12 months of production data or monitoring access.
Compare the production history to the system size. A system producing far below what similar systems do may have a problem. We don’t service other companies’ systems, so for a hands-on check ask a home inspector with solar experience or the original installer.
After you move in
Contact the utility to open your account and ask what’s needed to keep the system’s net-metering arrangement in your name. Ask whether banked net-metering credits stay with the meter or the seller’s account; don’t assume they transfer. Transfer the monitoring app and any warranties into your name.
If the system has no battery and you’d like backup power, we can often add one to an existing system — subject to the compatibility check described on our add-a-battery page.
What to do next
- 1Ask the listing agent early: is the system owned, financed, leased, or a PPA?
- 2Request the contract, permits, interconnection approval, warranties, and 12 months of production data.
- 3If leased or PPA, get the remaining term, current payment, escalator, and the assumption requirements in writing.
- 4Have your title company check for any lien or fixture filing tied to the system.
- 5After closing, set up your utility account, confirm net-metering continues, and transfer monitoring and warranties.
FAQ
Questions we hear
Do I have to take over the seller’s solar lease?
Usually, if the system stays, you’ll need to qualify with the leasing company and assume the remaining term — or negotiate for the seller to buy it out before closing.
Do the seller’s net-metering credits transfer to me?
Don’t assume so. Ask the utility how banked credits are handled when an account changes hands. Policies vary.
How can I tell if the solar system is working properly?
Request 12 months of production data and compare it with what a system that size should produce in your area. A home inspector with solar experience or the original installer can do a hands-on check.
Will the solar affect my mortgage?
An owned system usually doesn’t complicate things. A financed system with a recorded lien or a lease with a fixture filing may need to be resolved or disclosed to your lender. Your lender and title company will tell you what they need.
Can you maintain the solar on a house I’m buying?
We don’t service or take over systems installed by other companies. If you want to add a battery or a separate new system later, we can assess that.