Guide to Buying and Selling a Home with Solar Panels

Questions to ask when buying a property with Solar Panels

• Is it leased or owned?

  • If Leased…must review the contract. 

    • Is it transferable? 

    • What is the process to transfer? 

    • Will the new owner have to go through a credit check?

    • Will that affect the buyer’s ability to buy….affect their credit because of lease, debt to income ratio. 

    • Can the panels be bought out? 

      • If Yes

        • Are the terms agreeable? 

        • What is the cost to buy out? 

      • If No

        • can they be terminated. 

        • If so, what is the cost to remove panels? 

        • What is it’s historic generation? 

        • What is the cost of electricity in the home? 

        • Talk about the benefits. 

          • Is net metering available? Credit…meter runs backwards. 

          • Research system and manufactures…does warrantee apply? 

          • Research installer, any issues with company…installed correctly? 

          • Is there a maintenance agreement? Buyer ask for maintenance records. Financing statement will need to be amended if in place and will need to be paid off. It may affect their proceeds. 

  • If Owned: Include in P&S (Check with lender) Separate bill of sale reflecting transfer of units from seller to buyer. This will come in handy if the buyer has to prove in the future that they own the panels. Buyer should want to be aware that they claim energy credits. Trade “esrex” in 2018 known as ”SMAR” (renewable energy credits…have their own markets) The Mass Clean energy center…set up and transfer credits

 When you have the BUYER:

Language needed in our offers "Subject to review and acceptance of solar lease"

Make sure we notify the lender immediately, lease payments may change their ratios with the lender and in some cases the solar company

You may want to do a credit check for the new buyer or make an additional payment to offset their lower credit score.

"How old is the roof? The age of the roof is important because if its close to needing a new roof there will be a cost to remove and reset the solar panels.

If it's not stated in the lease documents you receive, you should inquire (and get something in writing) on the cost to remove and reset the panels and confirm that the price you receive is for all panels and not per panel as it can be pricey"

When you have the SELLER:

Start the transfer paperwork immediately once the offer has been accepted.

Who is retaining the SREC ( Solar Renewable Energy Certificates)credits if there are any?

The process can sometimes take a long time so be prepared early! Here is an Example of how Tesla handles the process ( keep in mind each company may be different) 

Tesla solar 

The seller will need to submit an online application at:

https://www.tesla.com/support/energy/solar-panels/after-installation/transferring-ownership

From there they will need to speak to the buyer. 

They will then send a document to be signed by both parties and issue a UCC (Uniform Commercial Code).

This can take up to four weeks, and should be done closely after a signed contract as the UCC is required to close. 

Tesla's direct line is  877-650-7652