Buying a home with solar panels

Owned, leased or financed? How to check a solar system, the roof underneath it, and the paperwork that should transfer with the house.

Rooftop solar is common across Southern California, and since 2020 the state has required it on most new homes. It is a feature with paperwork attached.

Owned, leased or financed

  • Owned outright: the system conveys with the house. Get the installation records and warranties.
  • Financed with a loan: some solar loans are secured by a fixture filing or lien. It may need to be paid off at closing.
  • Leased or under a power purchase agreement: you take over the contract, which requires the provider’s approval. Read the terms: monthly payment, escalator, years remaining and buyout options.

The roof under the panels

Inspectors can’t see roofing under the panels. If the roof is older, find out what it will cost to remove and reinstall the panels for a reroof. That can add thousands of dollars to the job.

What gets checked

  • Visible condition of panels, racking and roof penetrations.
  • Inverter and disconnect locations and labels.
  • Signs of leaks in the attic below the array.
  • Whether the electrical panel was upgraded with the system.
  • Battery storage, if present.

A detailed performance check is a specialist service. Ask the seller for recent production data from the monitoring app.

Net metering

Homes with systems installed under older net energy metering rules may keep those terms for a fixed period. Ask the seller which program applies and when it ends.