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 this number is expected to rise significantly in the coming years. Buying a home with solar panels can be a smart investment, offering potential savings on electricity bills and helping to reduce your carbon footprint. However, before purchasing, it’s important to understand the financial, maintenance, and legal aspects of owning a solar-powered home to make an informed decision.
One of the first things to consider is ownership—are the panels fully paid off, or are they leased or financed? If you're buying a home with solar panels not paid off, you’ll need to determine whether you can assume the existing agreement or if the seller must settle it before closing. Additionally, you should assess the condition, efficiency, and warranties of the solar system to avoid unexpected repair costs down the road.
To make an informed decision, be sure to ask the right questions before purchasing. Our guide will walk you through the pros and cons of buying a home 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.
GreenLancer, with over a decade of solar energy expertise, offers solar inspections and repair services to help you verify system performance and protect your investment. Whether you need a pre-purchase evaluation or post-sale support, our experts ensure you get the most out of your solar-powered home.
Pros and Cons of Buying a Home with Solar Panels
If you're considering buying a home with solar panels, it's important to weigh the benefits and potential challenges.
Pros of Buying a Home 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 transfer to the new homeowner, offering additional financial benefits.
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.
4 Tips 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 tips 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 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 planning on relying on it to reduce energy costs.
Request Electricity Bills
When buying a home with solar panels, also ask for the utility bills. These will give you a clear picture of how much the solar system has saved the homeowner on energy costs 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 can impact how much you can earn from excess solar generation.
Review the Solar System Warranty
Check the solar warranty information to make sure you know how long the panels 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.
Assess the Solar System’s Condition
If the solar system is not brand new, you’ll want to get it inspected by a professional to assess its condition. Even if the panels are covered under warranty, you need to know whether the system is still performing at its best. This can help you avoid unexpected repair costs after buying a home with solar panels.
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 home 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?
What If You Don’t Want the Solar Panels?
Maybe you love the house but don’t want the responsibility of a financed or leased solar system. In that case, you have a few options:
Ask the seller to buy out the lease or loan before closing so you get a fully owned system.
Negotiate a lower home price to account for any financial obligations you’ll be taking on.
Request panel removal – Some lease agreements allow the system to be removed at the seller’s expense, though this isn’t always possible or advisable.
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
First, make sure the solar system is legally transferred to your name. If you’re buying a home with solar panels, it’s crucial to verify ownership if the panels are leased, financed, or still have a balance. Review all transfer paperwork carefully to avoid any complications or misunderstandings about who owns the system.
Consider a Professional Solar Inspection
Even if everything seems in order, scheduling a professional solar inspection is often a good idea. GreenLancer offers solar inspections to assess system health and performance. This step can help you identify potential issues, ensure the panels are functioning properly, and prevent costly repairs.
Review Solar Panel Warranty & Maintenance Requirements
Be sure to review the manufacturer and installation warranties. Find out if the panels are still covered, how long the warranty lasts, and what maintenance is required. Knowing this upfront will help you plan for any future costs and ensure your system stays in top shape. Some warranties may transfer with the home, while others may require additional paperwork or action on your part.
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
It’s important to understand how the solar system will impact your utility bills. Net metering policies vary by location, so you’ll want to familiarize yourself with how energy production and consumption are billed in your area. This will help you track energy savings, manage your electricity usage, and ensure accurate billing.
Update Your Homeowner’s Insurance
Finally, don’t forget to update your homeowner’s insurance to ensure the solar system is properly covered. The system may require additional coverage, especially if it isn’t mounted on your roof. Your insurance provider may need to adjust your policy to reflect the value of the panels and any potential risks.
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 fully understand the system’s setup, condition, and financial implications. Here are some key questions to guide you:
1. What Is the Condition of the Solar Panels and Inverter?
Request maintenance records and warranties for the panels and the inverter. This will help you assess the system's current performance and ensure that there are no upcoming repair costs. Ask about any recent repairs or replacements made to the system and whether any issues have been reported.
2. How Old Is the System, and What Is Its Expected Lifespan?
Solar panels have an average lifespan of 25-30 years, but their efficiency can degrade a bit over time. If the system is older, it may not be as efficient as newer models. Understanding the age of the system and how many years of use you can expect will help you plan for future repairs or upgrades.
3. Who Owns the Solar Panels?
Are the solar panels fully paid off, leased, or under a loan? Knowing the ownership status is crucial, as it can affect the transfer of ownership and your financial obligations. If the panels are leased or financed, you’ll need to clarify whether you’ll be assuming payments or if the seller will settle the balance before closing.
4. What Type of Contract or Agreement Exists?
Ask about the specific terms of any contracts, including lease agreements, Power Purchase Agreements (PPAs), or warranties. Understanding the details of these agreements—like how long they last, whether they are transferable, and any associated costs—will ensure you're clear about your responsibilities as the new owner.
5. Are There Any Liens or Financing Agreements Attached to the Solar System?
If there are unpaid balances or liens attached to the solar system, they could affect your ability to purchase the home or transfer ownership. Ask the seller to provide documentation showing whether the system is free of liens or if any financing agreements need to be settled.
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 installing solar 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?
Find out how the solar panels will impact your homeowner’s insurance. You may need to adjust your policy to ensure the system is properly covered, and your current insurance provider might charge an additional premium.
How GreenLancer Can Help
When buying a home with solar panels, we offer expert services to ensure your investment is sound:
Solar Inspections for Homebuyers – We perform a comprehensive inspection to evaluate the system’s condition, efficiency, and overall performance before you purchase the home.
Solar Panel Repair – We identify and fix any issues with the panels themselves, ensuring they operate at full capacity, which helps avoid unexpected repair costs.
Solar Inverter Repair – We repair or replace faulty inverters to maintain smooth energy conversion, ensuring that your solar power system generates optimal energy.
Solar Monitoring Data Review – We analyze your system’s performance data to detect any underlying issues that might affect its energy output, helping you make an informed
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.
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