The Complete Guide to Buying a Home with Solar Panels
- Sarah Lozanova
- 10 hours ago
- 10 min read
As solar energy adoption continues to grow, you may be considering a home with an existing solar system. As of 2024, approximately 7% of U.S. homes have solar panels installed, and you may be considering a home with an existing system. Buying a home with solar panels can be a smart, long-term investment, offering significant savings on electricity bills. However, before purchasing, it’s crucial to understand the financial, maintenance, and legal complexities. The first step is determining the ownership status: is this system a great asset, or are you buying a house with solar panels not paid off?
For any home buyer, the phrase "I bought a house with solar panels now what?" requires a clear checklist. You'll need to assess the condition, efficiency, and warranties of the solar system to avoid unexpected repair costs down the road. If the panels aren't paid off, you must determine whether you can assume the existing loan, lease, or Power Purchase Agreement (PPA), or if the seller must settle the balance before closing.
This comprehensive guide will walk you through the pros and cons of buying a house with solar panels, what to do if the panels aren't fully paid off, and the most important questions to ask when buying a home with solar panels.
To protect your investment, GreenLancer, with over a decade of solar energy expertise, offers specialized pre-purchase solar inspections and repair services. Our team of professionals ensures you get the most out of your solar-powered home, helping you confidently answer the question: "I have solar panels now what?"
Pros and Cons of Buying a Home with Solar Panels
If you're a first-time home buyer, solar panels can offer long-term energy savings, but it's important to weigh the benefits and potential challenges before making a decision.
Pros of Buying a House With Solar Panels
✅ Lower Energy Bills – One of the biggest advantages of buying a home with solar panels is the potential for reduced electricity costs. If the system is properly sized and functioning efficiently, you could see significant savings over time.
✅ Environmental Benefits – Solar energy helps reduce your carbon footprint and dependence on fossil fuels. By purchasing a home with solar panels, you're investing in a cleaner, more sustainable future.
✅ Increased Home Value – Homes with solar energy systems are often more attractive to buyers. A well-maintained solar system can add value to the property, making it a smart investment.
✅ Incentives and Tax Benefits – Depending on your location, you may be eligible for state or federal solar incentives. Some incentives, like solar property tax exemptions, can transfer to the new homeowner.
Cons of Buying a Home with Solar Panels
❌ Solar Panel Ownership Issues – One of the biggest challenges comes when buying a home with solar panels not paid off. If the panels are leased or financed, you’ll need to determine whether you can assume the existing agreement or if the seller must pay off the balance before closing.
❌ Insurance Considerations – Adding solar panels to your home can impact your homeowner’s insurance. You may need to update your policy to ensure the system is covered, which could lead to increased premiums.
❌ Maintenance & Repairs – If the solar panels are older or out of warranty, you could be responsible for maintenance and repair costs. Before purchasing, it's crucial to ask about the system’s condition and warranty coverage.
❌ Outdated or Inefficient Systems – Not all solar panels are created equal. If the system is outdated, it may not provide the energy savings you expect. One of the most important questions to ask when buying a home with solar panels is about the system’s age, performance, and efficiency.
5 Critical Steps for Buying a Home with Solar Panels
If you're considering buying a home with solar panels, you'll want to do your due diligence to ensure you're making a smart investment. Here are five essential steps to help you navigate the process and make sure you're getting the most out of your solar-powered home.
Ask for Solar Monitoring Data
Before committing to the purchase, ask the seller for any available solar monitoring data. This will show you exactly how much energy the system has been producing and whether it's performing as expected. You want to ensure the system is running efficiently, especially if you're relying on it to reduce energy costs.
Request Electricity Bills
When buying a home with solar panels, always ask for the utility bills. These give you a clear picture of how much the solar system has saved the homeowner and whether any issues have affected energy production. Energy bills are also helpful for understanding how the system is integrated with your local utility's net metering policies, which directly impact how much you can earn from excess solar generation.
Review the Solar System Warranty
Check the solar warranty information to ensure you know how long the panels and inverter are covered and what’s included. Some warranties may transfer to you as the new homeowner, while others might require extra steps. If the system is out of warranty, be prepared for any potential repair or replacement costs—a common issue when inheriting an older system.
Assess the Solar System’s Condition
If the solar system is not brand new, you'll want to get it inspected by a professional. Even if the panels are covered under warranty, you need to know whether the system is still performing at its best. This proactive assessment can help you avoid unexpected repair costs after buying a home with solar panels.
GreenLancer provides thorough solar system inspections to evaluate the overall health and performance of the equipment.
Determine True Ownership Status
This is the most critical step, especially if you're buying a house with solar panels not paid off. You must confirm if the system is Owned (fully paid off), Loan-Financed (debt attached), Leased (third-party owns it), or under a Power Purchase Agreement (you buy the electricity). The answer dictates your financial and legal responsibilities moving forward.
Buying a Home with Solar Panels That Are Not Paid Off
So, you’ve found a home with solar panels, but there’s a catch—the system isn’t fully paid off. Buying a house with solar panels not paid off adds an extra layer of complexity, but it doesn’t have to be a dealbreaker. The key is understanding how the system was financed and what that means for you as the new homeowner.
Understanding Solar Panel Financing
Not all solar panels are owned outright. When buying a home with solar panels, you’ll need to determine whether the system is:
Owned – The seller has fully paid for the system, and ownership transfers with the home.
Loan-Financed – The seller took out a loan to purchase the panels.
Leased – The seller doesn’t own the system but pays a monthly fee to a third-party company.
Power Purchase Agreement (PPA) – Instead of owning the panels, the homeowner buys the electricity they produce at a fixed rate.
Solar Panels Loans – Who Pays the Balance?
If the seller financed the solar panels with a loan, find out whether they will pay off the balance before closing or if you’ll be expected to take over the remaining payments. Some lenders allow the loan to transfer to a homebuyer, but this isn’t always the case. Be sure to review the loan terms and understand any financial obligations before moving forward.
Leased Solar Panels – Can You Take Over the Lease?
If the panels are leased, you’ll need to carefully review the lease agreement. Some leases transfer easily to new homeowners, while others require credit approval or additional paperwork.
Key questions to ask include:
How many years are left on the lease?
Is there an option to purchase the panels later?
Will the monthly lease payment increase over time?
What happens if the panels need maintenance or repairs?
Power Purchase Agreements (PPAs) – Are They a Good Deal?
A PPA means the homeowner doesn’t own the solar panels but instead purchases the electricity they generate at a set rate. If buying a home with solar panels has a PPA, check:
The current electricity rate – Is it lower than what you’d pay a utility company?
Contract length – Many PPAs last 20+ years, so you’ll want to be sure it’s a good fit.
Transferability – Can you take over the agreement without additional fees or renegotiation?
Before signing anything, be sure to review all contracts and agreements carefully. Questions to ask when buying a home with solar panels include details about financing, ownership, and future costs.
If you're unsure about the system’s condition or contract terms, GreenLancer offers solar inspections and repair services. We can help you assess system performance so you can make a wise decision when buying a home with solar panels.
I Bought a Home with Solar Panels – Now What?
So, you’ve taken the leap and bought a home with solar panels—now what? There are a few key steps to ensure you’re getting the most out of your solar investment and avoiding any surprises down the road. Here’s what to do next.
Check System Ownership & Transfer Paperwork
If you’re buying a home with solar panels, the first step is confirming who legally owns the system. Many solar systems are financed, leased, or still under loan agreements, and ownership does not automatically transfer at closing.
Make sure you receive:
The solar contract (loan, lease, or PPA)
Ownership transfer forms (if required)
Proof of payoff if the seller bought out the system
Monitoring login credentials
Documentation for the inverter, battery, and panels
Missing paperwork can delay ownership transfer and lead to confusion about who is responsible for
payments or system repairs.
Consider a Professional Solar Inspection
Even if your solar system seems to be working fine, getting a professional inspection can be a smart move. GreenLancer provides solar system inspections to evaluate overall health and performance. A thorough checkup can uncover hidden issues, confirm your panels and equipment are operating efficiently, and help you avoid expensive repairs down the road.
Review Solar Panel Warranty & Maintenance Requirements
When buying a home with solar panels, reviewing the solar panel warranty, inverter warranty, and workmanship warranty is essential. Look for:
Manufacturer warranties (typically 10–25 years for panels, 5–12 years for inverters)
Workmanship or installation warranties (usually 1–10 years)
Transfer rules: some warranties transfer automatically, others require paperwork
Maintenance requirements to keep warranties valid
Keep in mind that some solar installers have gone out of business, which could make warranty claims more challenging. If the original installer is no longer around, you might need to work directly with the manufacturer or find another qualified professional for service and repairs.
Monitor Energy Savings & Utility Billing Changes
Once the system is yours, make sure you understand how it affects your electric bill.Policies vary widely depending on state and utility.
Key things to check:
Whether your utility uses net metering, net billing, or time-of-use rates
How credits appear on your bill
Whether your monitoring app is connected and logging performance
Your system’s baseline energy production throughout the year
Update Your Homeowner’s Insurance
Solar panels change your home’s insured value. Roof-mounted solar is usually covered under your standard dwelling policy, but ground mounts, solar batteries, and carport-mounted panels may require additional coverage.
Confirm with your insurer:
Whether the system is included in your policy
If a rider or upgrade is needed
Whether replacement cost coverage applies
Any documentation required for proof of ownership
Questions to Ask When Buying a Home with Solar Panels
When buying a home with solar panels, it’s essential to ask the right questions to understand the system’s age, condition, financial obligations, and long-term expected performance. These questions will help you avoid unexpected costs and ensure a smooth transfer of ownership.
1. What Is the Condition of the Solar Panels and Inverter?
Request recent maintenance records, monitoring reports, and warranty information. This will help you verify that the equipment is performing as expected. Ask whether any repairs, inverter replacements, or production issues have occurred in the past year.
2. How Old Is the System, and What Is Its Expected Lifespan?
Most solar panels last 25–30 years, and inverters typically last 10–15 years, depending on the type (string vs. microinverter). If the inverter is aging, you may want to plan for an upcoming replacement. Knowing the system age helps you understand both efficiency and future costs.
3. Who Owns the Solar Panels?
Ownership is one of the most important details when buying a home with solar panels. Ask whether the system is:
Fully owned
Leased
Under a financing agreement or loan
Ownership status affects the home purchase contract, transfer process, and your financial responsibilities. If the seller still owes money, confirm whether the balance is being paid off or transferred to you.
4. What Type of Contract or Agreement Exists?
Request copies of any solar lease, PPA, loan agreement, or warranty documents. Pay close attention to:
Monthly payment amounts
Escalators (annual price increases)
Contract length
Transfer requirements and fees
Whether the agreement is transferable to new homeowners
5. Are There Any Liens or Financing Agreements Attached to the Solar System?
Some solar loans involve UCC filings or liens on the solar equipment. These may need to be removed before closing. Always ask the seller for documentation confirming whether:
A loan exists
A lien exists
The loan is paid off or will be paid off
6. What Happens If the Roof Needs Repairs?
Determine how panel removal and reinstallation will be handled if the roof requires repairs. Some solar companies will handle this as part of the service, but depending on the agreement, you may need to arrange and pay for it yourself.
7. Does the System Qualify for Property Tax Exemption?
Some regions offer property tax exemptions for solar systems, which means the added value of the system is excluded from property tax assessments. This can make buying a home with solar panels more affordable by reducing ongoing property tax liabilities.
Currently, 36 states offer property tax exemptions for solar energy, according to the Solar Energy Industries Association. Check whether the home you’re buying qualifies for this exemption to take full advantage of potential savings.
8. How Will Solar Affect My Homeowner’s Insurance?
Some policies automatically include solar equipment, while others require an endorsement. Ask your insurance provider whether:
The solar panels are covered
There is an additional premium
A separate renewable energy rider is required
What to Know Before Buying a Home With Solar Panels
Understanding the system's ownership, condition, and potential costs is crucial. Assessing the pros and cons of buying a home with solar panels helps ensure you’re making a sound investment. Be diligent in asking the right questions, such as about panel ownership, system age, and warranty details.
If you're unsure or need expert help, GreenLancer is here for solar inspections and repairs to protect your investment and ensure the system’s performance. Complete the form below to get started.