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Everything You Need to Know About Buying a House with a Solar Lease

What is a solar lease?

An agreement with a company to have a solar energy system installed on your roof for no upfront costs. You’ll then rent the electricity the system produces.

How does a solar lease work?

buying a house with a solar lease

When you lease solar panels, you are essentially renting them from the company that installed them. This company is responsible for maintaining and repairing the equipment throughout the duration of your lease agreement.

One important thing to consider before signing a solar lease is whether or not you will be responsible for any maintenance or replacement costs in case something goes wrong with the panels. Ask about this beforehand to avoid any surprises down the road.

Another thing to keep in mind is how much capacity your monthly payments will cover. Make sure you are aware of what size system was installed, and calculate the cost per month to ensure it falls within your budget.

Leasing solar panels can be a great way for homeowners to take advantage of renewable energy without having to make a large upfront investment. There are different types of leases available depending on your needs and property type. Leases offer fixed monthly payments in exchange for access to solar power systems

Understanding The Different Solar Panel Financing Scenarios You Could Encounter

There are 3 main solar panel financing scenarios you could encounter, depending on the state that you live in. 

Buying a house with fully owned solar panels

When you buy a residential solar panel, the original owner won’t have any outstanding loans. The panels will have been paid for in full by the previous owner and you’ll take over ownership of them as soon as they’re installed on your home.

As long as the solar panels are generating electricity, you will own them–even if you sell your house. Owning your own solar panel system saves you money on your utility bills.

Buying a house with a solar lease / power purchase agreement or PPA

If you’re unsure if buying a home with leased solar panels is right for your needs, ask about the monthly fees and escalation. Find out what’s included in the lease contract and how payments will escalate. The solar company might be able to transfer your name from the lease after passing a credit check.

When you enter into a solar power purchase agreement (PPA), you are basically renting the solar panels from the company that installed them on your home. This monthly cost is guaranteed for the length of the contract, which is typically around 20 years.

A PPA is a financial agreement between you and the company who installed your solar panels. The monthly cost of the PPA is typically lower than what you’d pay for electricity from your utility company.

Buying a house with solar panels financed through a solar loan

Solar loans allow homeowners to invest in a solar panel system without having to pay a big upfront cost. Some providers offer zero-down loans and others offer options for signing up for a loan early to get a lower interest rate.

Solar loans work like any other home loan, and the homeowner is responsible for making monthly payments to pay off the cost of the solar panels over time. The homeowner is also responsible for paying property taxes and insurance on the solar panels, as well as maintenance costs.

How do I know if a solar lease is right for me?

A solar lease is a great option for individuals who have roof access and want to make the switch from fossil fuels. If you’re not sure if it will be right for your needs, do the following:

  • Look at the size of your roof.
  • Find out what system you need to install, such as a solar panel or rooftop installation.
  • Find out how much it will cost to install the system and how long it will take.
  • Determine if you can afford the monthly payments over a period of time. If you can, a solar lease might be the right choice for you.
  • Ask your solar leasing company to provide you with a copy of its warranty and maintenance agreement. This can help protect you in case anything goes wrong with the system or the company goes out of business.

What factors should I consider when deciding if a solar lease is right for me?

When it comes to leasing a solar system, you have to do some specific things first:

  • First, consider your electricity bill and how much you’re spending each month.
  • Second, think about the size of the system you need. Your solar lease company can help with this.
  • Third, find out what kind of incentives are available in your area. And finally, compare different lease options to see what’s best for you.

What should I look for in a solar lease agreement?

There are a few things you should keep in mind before signing a solar lease agreement:

1. Solar panels can improve curb appeal – if your home is located in an area that sees a lot of sun, installing solar panels can increase the attractiveness of your home.

2. Make sure you read the contract carefully – there may be hidden costs or fees associated with the lease agreement.

3. Check to see if the company is licensed and insured – this will help protect you in case something goes wrong with the installation or maintenance of the panels.

How much will I save by leasing solar panels?

Leasing solar panels is a great way to reduce your upfront investment costs. A third party will own the equipment, and you will make fractional monthly payments for 20 or 30 years. These payments are almost always lower than power purchased from electric utilities.

Before signing up for a solar lease, it’s important to calculate how much electricity the panels will generate. This information can help you decide how much energy you want to sell back to the grid.

What happens if I move before the end of my solar lease?

If you move before the end of your solar lease, it’s likely that you will be required to pay a penalty. The amount of this fee is determined by how long you have been with your solar provider.

How do I get out of a solar lease?

If you want to get out of a solar lease, it’s difficult. Solar leases are locked in for long periods of time and the rates can only be changed if your solar lease is up for renewal. If you’re looking to break a contract, you can do so by going through the company that issued your solar loan and completing their termination process.

Transfer your solar lease to eliminate extra costs when selling

When you’re selling your home, one of the last things you want to worry about is your solar lease. Luckily, there are ways to transfer your lease so that the process is as smooth and stress-free as possible. You need to coordinate with all parties involved in the transaction, including the solar company, the buyer, and the closing agent.

The process of transferring a solar lease can be difficult, with potential fees associated with it. There are several steps involved in transferring a solar lease to another buyer before closing the deal:

  • Notifying the company that you are selling your home;
  • Transferring ownership;
  • Canceling the lease;
  • Taking care of early termination fees.

You will get help from a solar service transfer specialist in order to sell your lease. They will provide you with all of the necessary paperwork, including copies of your agreement and any correspondence between yourself and the solar company.

Buy out your solar lease to add value to your home

When you’re looking to sell your home, one thing that can add value is the solar lease contract. However, there are a few things you need to consider if you want to buy out the panels from the lease.

First, compare how much it would cost to purchase them versus what owning them would add to your home’s market value. If the buy-out offer is too low, it might be worth buying the solar panels yourself and selling them to avoid a lease.

Consult your real estate agent to assess how much value your solar panels will add to make a decision.

Buying solar panels is an upfront cost, but it’s worth it when you can get out of your lease early and sell your home for more profit. There may be large penalties for early buy-outs, so make sure you’re aware of those before making any decisions.

Pros of Buying a Home with Leased Solar Panels

Little to no upfront costs

Leasing solar panels is becoming a more popular option, as it allows homeowners to get the benefits of solar power without having to commit upfront funds or put in any work of their own. With leasing options, homeowners can enjoy lower monthly payments and save on their utility bill in the long run by financing solar panels through a Power Purchase Agreement (PPA). In addition, there are no maintenance costs associated with leased solar panels – the company that installs and maintains the system will take care of everything for you. So if you’re interested in going solar but don’t want to deal with any upfront costs or headaches, leasing may be the perfect option for you.

Avoid maintenance costs and efforts

When you lease solar panels, you don’t have to worry about the costs or efforts associated with maintaining them. A lease covers the maintenance of solar panels and leaves little to no work for the home owner. In addition, a solar lease is low-maintenance, with only occasional cleaning required from the homeowner. So if you’re looking for an easy way to reduce your energy costs and help the environment, consider leasing solar panels for your home.

Solar panels increase the value of your home

The solar panels that you lease to the company will increase the value of your home. This is because they are a sign of sustainability and clean energy which has become more popular in recent years.

A house is not only an investment for your future, but it’s also where most people spend the majority of their time.

Cons of Buying a Home with Leased Solar Panels

You won’t own the solar equipment

When you lease solar panels, you are essentially renting them from the company that installed them. You don’t own the equipment and, as a result, you can’t sell it another homeowner if you move. This is an important consideration if you think you might sell your home in the future.

In addition, ask for a copy of the sale contract with the solar installer. The contract should state how much money – if any – you will receive when the system is eventually decommissioned and removed.

You may not be eligible for solar incentives and rebates

When buying solar panels, you may qualify for government and private cash incentives. Cash-based incentives can be significant enough to make purchasing solar panels a much better option than leasing them.

However, if you decide to lease solar panels instead of purchasing them outright, you will likely not be eligible for these same incentives. That’s because the leasing company owns the system, so you don’t get the tax breaks or other benefits associated with owning your own renewable energy source.

You may not be able to sell your home as quickly

When you buy a home with leased solar panels, it can be more difficult to sell. This is because the new owner would have to take on the lease agreement and continue making payments to the solar company.

If you’re looking to sell your home in the near future, buying solar panels might not be the best decision. However, if you plan on staying in your home for a long period of time, then it might make more sense to buy them yourself instead of leasing them.


Are solar leases worth it?

A solar lease is a long-term agreement that allows property owners to pay for the cost of installing photovoltaic panels on their roof and receive an agreed upon monthly payment in return. The agreement can last as long as 20 years, with the annual cost of energy decreasing each year due to a rising price on solar panels and increasing efficiency.

Do solar warranties transfer to new owners?

Yes, solar warranties transfer to new owners. The warranty is tied to the home, not the buyer or lessee. This means that if something happens to your panels during your ownership, the warranty will still be valid. However, it’s important to remember that most warranties are only for a certain number of years (usually 10-20).

Do solar panels ruin the rooftops?

No, solar panels do not ruin rooftops. If you hire a qualified and experienced professional, the chances of your rooftop being damaged is slim to none. In fact, many homeowners are choosing to buy homes with leased solar panels because it can save them money and allow them to take advantage of tax credits.

Is it worth buying a house with solar panels?

There are many benefits to owning a home with solar panels. For one, you’ll be doing your part to help the environment by using renewable energy. Solar panels are also good for your wallet, reducing utility bills. Solar shingles and solar leasing offer an eco-friendly way of generating energy that is affordable. The most efficient solar panels are the ones with a high cell efficiency rating (CES).

How long does it take for solar panels to pay for themselves?

It can take anywhere from 7-10 years for solar panels to pay for themselves.

If you would like to know if we can install solar and put thousands of dollars in your pocket for doing it, use the form below to submit your electric bill for a no cost, no obligation evaluation.