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How do I get out of a solar panel lease to sell my house?

I have a 20-year solar lease with 15 years left. I’m worried buyers will be scared off by the monthly payment or the credit check to transfer it. What are my options? Do I have to buy it out just to close the sale?
Asked By Ferg B | New Hope, PA | 19 views | Green Housing | Updated 1 day ago
Answers (4)
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Novice
8 Answers
Amanda Mullins

eXp Realty

(17)

No, you don't have to buy it out, but you do need a plan before you list.

Market it as a feature. Buyers focused on lower utility bills may see the lease positively if the monthly payment is less than what they'd pay for electricity without it. Know your numbers and have them ready.

The worst thing you can do is wait for a buyer to bring it up. Get your lease documents out now, know the transfer process and timeline, and let your agent get ahead of it. A solar lease doesn't have to kill a deal. A surprised buyer mid-contract is what kills deals.

I've negotiated the buyer and seller splitting the buyout cost in the past.
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Novice
1 Answer
Jake Toyberman

Homestarr Realty

(16)

These contracts and warrantees are usually transferable. Strategize with your favorite real estate expert how to price the home and the solar panels. If you are in the Philadelphia, reach out. https://tinyurl.com/JustAskJake

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Novice
5 Answers
Angela Rodriguez

Dream Finders Realty Group

(29)

You don’t necessarily have to buy it out to sell the home, but solar leases can make buyers hesitant because of the monthly payment and the credit check required to transfer the lease.

In most cases you have three options: transfer the lease to the buyer (if they qualify with the solar company), negotiate with the buyer to share or offset the cost, or pay off the remaining balance.

What we usually recommend is paying it off at closing using the proceeds from the sale. That way the buyer receives the home with fully owned solar panels and no extra monthly obligation, which tends to make the property easier to sell and removes a common obstacle during negotiations.
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Novice
1 Answer
Cherie Fetterman

Coldwell Banker Realty

First definitely check with the solar company. I have a listing currently and they just had panels installed. Everything transfers to the new owner. I have not seen any feedback to where this is a problem. As far as qualifying if they are able to buy the home I do not feel there would be an issue with qualifying for the solar panels. Hope this helps Good luck with all your new endeavors!

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