So the first job is finding out which one you have. After that, two details can come up late in escrow: a UCC filing on the title report, and a net metering plan that may or may not carry over to the buyer.

Do solar panels help or hurt a Bay Area home sale?

Owned, paid-off panels can help. What slows a sale is a contract attached to the panels.

The Contractors State License Board (CSLB) and the California Public Utilities Commission (CPUC) both say a purchased system may increase the value of your home. The CPUC's consumer guide suggests working with agents and appraisers who have sold homes with solar. It also says you can include the system in the sale like any other major improvement.

Leases and PPAs work differently. The CSLB says selling during the term "can become challenging." These contracts often require you to buy out the system at a price the solar company sets, or the buyer has to agree to take the contract over. Some buyers are reluctant to.

Loans and PACE bring a lien question. The CPUC notes that some solar loans place a lien on the property, and PACE financing puts a first-priority lien on it. Either one has to be paid off or accepted by the buyer before closing.

How do you tell whether your system is owned, financed, leased or a PPA?

Start with who you pay. The CPUC's guide describes how each type is billed:

Owned outright: no solar payment to anyone. You paid cash, or the loan is paid off.
Solar loan: a monthly bill from a loan company. You own the system, though the lender may hold a lien on the panels.
Lease: a scheduled monthly payment to the solar company, which owns the system and rents it to you. Typical terms run 20 to 25 years.
PPA: you pay for the power the system makes, at a set rate per kilowatt-hour. The solar company owns the equipment.
PACE: a charge on your property tax bill once or twice a year, or folded into your mortgage payment if your taxes are paid through it. You own the system.

Then find the contract. A newer one should come with two CSLB forms: the Solar Energy System Disclosure Document on the cover, and a Supporting Information form. On the second, you initialed whether you were purchasing, leasing or signing a PPA. Its transferability section answers what a buyer will ask: whether the contract can pass to a buyer, on what conditions, and whether the warranty goes too.

If the paperwork is gone, call the company that bills you and ask for a copy of the contract and its terms for a home sale.

What happens to a solar lease or PPA when you sell?

The buyer takes it over, you buy it out, or you keep paying. The CPUC lists those as the usual options and warns that a buyout "could be thousands of dollars."

A transfer is the simplest route when the buyer wants the system. The CSLB's disclosure form lists the conditions a company can attach to one:

review and approval by a third party
a credit check on the buyer
a minimum FICO score
the buyer's assumption of the lease or PPA
a transfer fee

For a PPA, the form also asks whether you can buy the system or prepay the balance before the transfer. A buyout that purchases the system ends the contract, and the house then sells with owned panels. The CSLB says leases often set the buyout price in advance. The figure should be in your contract or a phone call away.

Call the solar company as soon as you decide to sell. Ask for three things in writing: what a buyer needs to qualify, how long the review takes, and the buyout figure as of your likely closing date. Then give that contact to escrow, so nobody is chasing it the week before closing.

What is a UCC filing, and why does escrow care?

A UCC fixture filing is a public notice that a lender or solar company claims an interest in equipment attached to your house. Escrow cares because it can cloud the title until it is released or handled.

The California Secretary of State says fixture filings may be filed in the county where mortgages on real property are filed. That puts them in the public record. Before it issues a policy, the California Department of Insurance explains, a title company searches title plants or public records for liens, claims and encumbrances on the property.

The CFPB says solar lenders commonly file UCC liens on the panels. Its 2024 report quotes a consumer group's finding that such a lien is "technically not on the property, but it can muddy the title." When that happens, the lien has to be released or made subordinate to the new loan.

If a filing shows up on your preliminary title report:

Loan paid off from the sale: ask the lender to file a termination statement once it is paid, and give escrow the lender's contact.
Lease or PPA going to the buyer: ask the solar company whether it recorded a filing and what it needs to update it.
Buyout: ask for the release along with the buyout quote.

Our guide to selling a house with a lien on it covers how escrow handles other liens. This is general information, not legal advice. If a filing won't clear, talk to a California real estate attorney.

Does your net metering plan transfer to the buyer?

It depends on when the system was connected. Under PG&E's tariffs, an older NEM 2.0 system keeps its plan when the house sells. A newer system on the Net Billing Tariff loses its nine-year protection when a new owner takes over.

The dividing line is April 15, 2023. The CPUC says customers who applied to interconnect on or after that date take service on the Net Billing Tariff, which the utilities call the Solar Billing Plan. Its credits for power sent to the grid are usually lower than the retail rate.

NEM 2.0: the CPUC says these customers can stay on NEM 2.0 for 20 years from the date they interconnected. PG&E's NEM2 schedule says that eligibility is not lost when the system goes to a new owner, as long as it stays at its original location. The buyer has to meet PG&E's safety and information requirements.
Net Billing Tariff: the CPUC says the original customer is guaranteed this tariff for nine years. PG&E's schedule says that period is "linked to the customer who originally causes the system to be installed, not to the system itself." A buyer who takes over the system gets no legacy period, unless the buyer is the original owner's spouse or domestic partner, or the house is new construction sold by its builder.

If you're on NEM 2.0, hold off on adding panels before a sale. Under PG&E's schedule, growing the system by more than 10 percent or 1 kW, whichever is greater, can move it off NEM 2.0 unless the addition is connected separately.

Ask PG&E which tariff your system is on and its permission to operate date, and give both to the buyer. The CPUC's rules here cover PG&E, Southern California Edison and San Diego Gas & Electric. If a city-owned utility serves your house, ask it for its own rules.

Can you sell a house with leased solar as-is?

Yes. As-is is about repairs, and a lease is a contract. You settle the contract by transfer or buyout no matter who buys the house.

On a sale to us, that part is handled for you. Our Livermore page puts it this way: "Leased solar transfers are handled in the close, either assuming the lease or facilitating a buyout. It doesn't delay the transaction." Owned solar is factored into the offer. We cover the standard closing costs and there is no agent commission on our side.

We can make an offer within 24 hours. We can close in as little as 7 days when the title is clear; 30 to 60 days is typical. Once you accept, we assign you a dedicated transaction coordinator for the paperwork, as how a sale to us works explains.

There is a tradeoff. We pay fair prices, but not always full market value. For houses needing repairs, we calculate fair prices by subtracting repair costs. If your panels are owned and paid off and the house is in good shape, a listing with an agent who knows solar homes may bring more. That's a fair path. We're the better fit when the house needs work, a lease is making buyers hesitate, or you'd rather skip showings. Our page on selling a house as-is in California covers how condition is priced.

Frequently asked questions

Can a buyer refuse to take over the lease?

Yes. Taking over a lease or PPA is the buyer's choice. If the contract requires a credit check or a minimum FICO score, the solar company can also turn down a buyer who doesn't meet it. If the buyer says no, the CPUC's other usual options are a buyout or continuing to pay it yourself. Settle which one applies before you sign a purchase agreement, so it doesn't surface in the last week of escrow.

What does a lease buyout cost?

It depends on your contract and how many years are left. The CSLB says leases often set a buyout price in advance. The CPUC says you may owe the remaining value of the lease or PPA, which can run to thousands of dollars. Ask the solar company for a written buyout quote dated to your expected closing, and send it to escrow. If the buyout purchases the system, the panels then sell with the house.

Can I move the panels to my new house?

Sometimes, but it's uncommon. The CFPB says homeowners don't typically move panels because of the risk of damaging the panels or the house. With a lease or PPA, the CSLB disclosure form asks whether your contract allows a move at all. Under PG&E's tariffs, a system moved to a new location counts as a new installation. It needs a new interconnection agreement under the rules in place at the time, so an old NEM 2.0 plan would not come with it.

Will the solar company approve the transfer before closing?

Only if the buyer meets its conditions, which can include a third-party review, a credit check, a minimum FICO score and a transfer fee. The company sets the timing. Start the request as soon as you have a buyer, ask how long the review takes, and check on it during escrow. If approval stalls, a buyout is the usual fallback.

What if the system does not work?

That depends on who owns it. With a lease or PPA, the CSLB and CPUC say the solar company is responsible for maintenance and repairs, so call it before you sell. If you own the system, repairs are typically yours, and the CPUC notes the inverter may need replacing sooner than other parts. Tell the buyer what you know; our guide to seller disclosures in California covers the forms. On a sale to us, owned solar is factored into the offer, and you don't fix anything first.

Is a PACE assessment the same as a solar loan?

No. PACE is repaid through your property tax bill. The CPUC says it creates a first-priority lien attached to the house, usually for 10 to 30 years. A buyer may ask you to pay off the balance, and some mortgage lenders won't lend on a house with a PACE lien until it's paid. A solar loan is a separate debt, sometimes secured by the panels. At a sale, the CFPB says, the buyer assumes it if the lender allows, or you pay it off.

See your options, solar and all

If you'd like to see a number with your panels and paperwork factored in, tell us whether the system is leased, financed or owned. Read about selling a house as-is in California, contact us, or call (510) 283-9871. No pressure, and no rush.

Selling a California House With Solar Panels: Leases, Loans and Net Metering