Don’t Let This Bright Idea Turn into a Nightmare!

Here’s one that catches a lot of buyers off guard: homes with solar panels. They’re great for the environment and can save you money on your electric bill — but they also come with a lot of fine print and potential headaches if you’re not careful.

Here’s What You Need to Know:

Solar panels on a home can be:

  • Owned outright (no issues here!)
  • Financed by the homeowner (you might have to take over the payments)
  • Leased through a third-party company (you’re often stuck with the lease — and the payments — if you buy the home)

Or… they could have been paid for through grants or programs that create a lien on the home. In any case, it’s vital to figure out exactly what you’re getting into.

The Big Warning:

Many buyers don’t realize that:

  • A solar panel lease or loan can be a lien on the property — you inherit it when you buy the house.
  • Solar leases don’t always transfer smoothly — and can complicate financing or even kill your loan.
  • Old solar panels (say, 15 years old) may only have 5 years of life left — so you’re not really. Canceling a solar lease isn’t easy — there can be hefty penalties.

What You Should Do (Step by Step)

1️⃣ Ask the Seller for EVERYTHING:

  • Who installed the panels?
  • Are they owned or leased?
  • If leased, what’s the payment, and how long is left on the term?
  • If financed, what’s the balance, and will it be paid off at closing?
  • Any grants or tax programs involved?

2️⃣ Title Company Lien Search:

  • Have the title company do a thorough lien search specifically for solar-related liens.

3️⃣ Request All Documentation in Writing:

  • Contracts, warranties, installation records, and loan/lease paperwork.

4️⃣ Include a 15-Day Due Diligence Period

  • Review your contract carefully.

5️⃣ Consult an Expert if Needed:

  • Solar panel agreements can be confusing. Don’t be shy about getting a second opinion!

Final Thoughts & Why This Matters

We’re big fans of green energy at House Karma, and we love seeing buyers save money and help the planet. But buying a home with solar panels requires extra care. One oversight can mean thousands of dollars in extra payments — or even trouble selling the house later.

Bottom Line: Solar panels can be fantastic — but only if you know exactly what you’re buying and what you’re signing up for.

If you’re looking at a home with solar, please take the time to read every detail. Ask questions. Do the research. And if you’re not sure? House Karma brokers are always here to help you sort it out!

Extra Tip: There’s a lot more on this topic in the House Karma educational section — check it out before you make an offer!