If you are considering purchasing a home with solar panels, review the following before moving forward:
☐ Owned outright by the current homeowner
☐ Financed through a solar loan
☐ Leased from a solar company
☐ Subject to a Power Purchase Agreement (PPA)
Ask: Will the solar system be paid off at closing, or will I be assuming an existing agreement?
If the system is leased or subject to a PPA:
☐ Obtain and review the complete agreement
☐ Determine the monthly payment
☐ Understand how long the agreement remains in effect
☐ Determine whether payments increase over time
☐ Understand the electricity usage and production terms
☐ Check for restrictions on making changes to the property
☐ Determine whether the agreement can be transferred to the buyer
☐ Ask whether there is a UCC lien associated with the system
Important: Your lender may consider solar payments when determining your creditworthiness.
☐ Ask your lender how the solar system will be treated for underwriting purposes
☐ Determine whether an existing solar loan must be paid off before closing
☐ Confirm whether the solar agreement affects your ability to qualify for the mortgage
☐ Confirm the solar installation was properly permitted
☐ Confirm required inspections were completed
☐ Obtain copies of permits and inspection records
Unpermitted solar installations can create problems for both buyers and sellers.
☐ Determine the age of the system
☐ Identify the manufacturer and model
☐ Determine the expected remaining useful life
☐ Review maintenance records
☐ Review repair history
☐ Determine whether the system is producing as expected
☐ Obtain historical electricity bills
☐ Obtain solar production records
☐ Review the system's estimated vs. actual production
☐ Understand how much electricity the system has historically generated
☐ Compare energy costs with similar homes without solar
Don't assume solar automatically means lower electricity costs.
☐ Identify the local electric utility
☐ Determine whether net metering is available
☐ Understand how excess electricity is credited or compensated
☐ Determine whether the current agreement transfers to the buyer
☐ Obtain panel warranties
☐ Obtain inverter warranties
☐ Determine whether warranties transfer to the buyer
☐ Check whether labor or installation warranties remain in effect
☐ Determine expiration dates
☐ Determine the roof's age
☐ Have the roof professionally inspected
☐ Determine the remaining expected roof life
☐ Check whether repairs or replacement may be needed
Important: If the roof needs replacement, solar panels generally must be removed and later reinstalled, which can add significant costs.
☐ Confirm the HOA allows solar panels
☐ Review HOA rules regarding solar installations
☐ Determine whether future modifications are restricted
☐ Tell your insurance agent the property has solar panels
☐ Confirm the panels are covered
☐ Ask whether installation or placement affects coverage
☐ Determine whether additional coverage is required
☐ Don't automatically assume solar increases the home's value
☐ Consider the system's age, condition, ownership, financing and energy production
☐ Discuss valuation with your lender and appraiser
☐ Compare the property with comparable homes
If you are selling a home with solar panels, prepare the following information early in the transaction:
☐ Owned outright
☐ Financed
☐ Leased
☐ Power Purchase Agreement (PPA)
☐ Purchase agreement
☐ Financing agreement
☐ Lease agreement
☐ PPA agreement
☐ UCC documentation, if applicable
☐ Warranty documents
☐ Maintenance records
☐ Repair records
☐ Solar installation permit
☐ Final inspection documentation
☐ Other applicable permits or approvals
☐ Recent electric bills
☐ Historical electric bills
☐ Solar production records
☐ Net-metering information
☐ Utility agreement
If the system is financed:
☐ Contact the solar lender
☐ Determine the payoff amount
☐ Confirm whether the loan must be paid off at closing
If the system is leased or subject to a PPA:
☐ Determine whether the buyer can assume the agreement
☐ Obtain transfer requirements
☐ Confirm buyer qualification requirements
☐ Identify any transfer fees or other costs
☐ Determine roof age
☐ Review roof maintenance history
☐ Identify any known roof issues
☐ Determine whether solar panels may need to be removed for future roof work
☐ Confirm solar installation complies with HOA requirements
☐ Gather HOA approvals, if applicable
☐ Provide applicable HOA documentation to the buyer
☐ Confirm current coverage for the solar system
☐ Determine whether coverage transfers or changes after the sale
☐ Provide relevant information to the buyer's insurance agent when appropriate
☐ Who owns the panels?
☐ Are there any solar loans, leases, PPAs or liens?
☐ What will my monthly solar obligation be?
☐ Can the agreement be transferred?
☐ Is the system permitted and inspected?
☐ How old is the system?
☐ How much electricity does it actually produce?
☐ What warranties transfer?
☐ How old is the roof?
☐ What does the utility offer for excess electricity?
☐ Does the HOA have applicable requirements?
☐ Will my insurance cover the system?
☐ Ownership/financing information
☐ Solar contract or agreement
☐ Payoff information
☐ Permit and inspection records
☐ Production history
☐ Utility information
☐ Warranty information
☐ Maintenance/repair records
☐ HOA documentation
☐ Roof information
Do not assume that solar panels automatically increase the value of a property or reduce the buyer's costs.
The financial impact depends on factors including ownership, financing, system age and condition, energy production, utility policies, roof condition, warranties, insurance and buyer/lender requirements.
For questions involving legal obligations, liens, contracts or financing, consult the appropriate licensed professional, including a Florida attorney or mortgage professional.
This checklist is for informational purposes and is based on the NAR Consumer Guide: “How Solar Impacts a Real Estate Transaction.” It is not legal, tax, insurance or mortgage advice.
Source: Information for this checklist was obtained from the National Association of REALTORS® (NAR) Consumer Guide: “How Solar Impacts a Real Estate Transaction.”
View the NAR Consumer Guide: How Solar Impacts a Real Estate Transaction
The NAR guide addresses important considerations involving solar installations in real estate transactions, including solar ownership, financing, leases, power purchase agreements (PPAs), UCC liens, PACE loans, energy savings, system age and condition, net metering, permits and inspections, warranties, HOA considerations, roof condition, insurance and potential property value.
This checklist is a simplified educational resource based on the NAR Consumer Guide and is not an official NAR document. It is intended to help buyers and sellers identify questions and documents that may need further review during a real estate transaction.
Information and requirements may vary by state, local jurisdiction, lender, utility provider, solar company, HOA and individual contract.
For questions involving legal obligations, contracts, liens, financing, insurance, taxes or other specialized matters, consult the appropriate licensed professional.
Source: National Association of REALTORS®, Consumer Guide: How Solar Impacts a Real Estate Transaction.
https://www.nar.realtor/the-facts/consumer-guide-how-solar-impacts-a-real-estate-transaction
South Tampa homeowners: Prepare for hurricane season with our free hurricane readiness checklist. Learn how to protect your home before severe weather strikes.
Read this: Is Your Home Hurricane Ready? | Florida Hurricane Preparedness Guide
Learn the four key factors lenders consider when approving a mortgage: Credit, Capacity, Capital, and Collateral. This guide helps home buyers understand how to prepare for…
Read this: The 4 C's of Mortgage Approval | Home Buyer Mortgage TipsExplore helpful real estate tips and infographics for homeowners and buyers in Tampa's 33606 ZIP code, including Hyde Park, Davis Islands, and Harbour Island. Brought to you…
Read this: 33606 Real Estate | South Tampa Homes Stats June