Checklist for Buying a House That Already Has Solar Panels

A house with solar panels can be a good buy, but only if you know who owns the system, what condition it is in and what paperwork comes with it. Before you firm up an offer, get the ownership documents, the utility connection approval, at least a year of production data and an inspection of the panels, inverter and roof underneath. Most surprises with solar homes come from a lease or lien nobody read, or a roof that needs replacing two years after closing.

Work through it in this order: paperwork, then performance, then the physical inspection.

Step 1: Find out who owns the system

This is the question that shapes everything else. There are four common setups.

• Owned outright. The seller paid cash and the system transfers with the house. Simplest case.
• Owned with a loan. The seller financed the system. Some solar loans are unsecured, some are tied to the property, and some came with a UCC fixture filing (in the US) that shows up in the title search. The loan usually has to be paid off at or before closing.
• Leased or under a power purchase agreement (PPA). A solar company owns the equipment and the homeowner pays a monthly lease or a rate per kWh. You do not buy the panels with the house. You either take over the contract, which requires the company's credit approval, or the seller buys it out.
• Financed through PACE or a municipal program. Some US states and a few Canadian municipalities let owners repay solar through a charge on the property tax bill. That charge often stays with the property, so you would inherit the remaining balance.

Have your lawyer or notary look for any registered lien, fixture filing or property tax assessment tied to the system.

Step 2: Collect the paperwork

For an owned system, ask the seller for:

• The original installation contract and the invoice
• The equipment list: panel model, inverter model (or microinverters or optimizers), battery model if any
• Manufacturer warranty documents, and whether they need to be transferred to a new owner by a deadline
• The installer's workmanship warranty, plus the name of the installer and whether the company still exists
• The electrical permit and the final inspection sign-off
• The utility's interconnection or net metering approval, sometimes called permission to operate

For a lease or PPA, add the full contract, the current monthly payment, the escalator (many leases go up 1% to 3% a year), the remaining term, the buyout price and the transfer process.

A system installed without a permit or utility agreement may need approval after the fact, and some utilities can require it to be disconnected until then.

Step 3: Check the net metering terms

Net metering rules decide how much the extra daytime power is worth, and they do not always carry over to a new account holder the way buyers expect.

• Quebec: Hydro-Québec's net metering option credits surplus kWh to future bills. The new owner usually has to sign up for the option under their own name.
• Ontario: Net metering runs under Ontario Regulation 541/05 through the local distribution company. Some older homes were on the microFIT program instead, which paid a fixed rate under a contract. Those contracts had end dates, so check what happens after the term.
• US states: Rules vary widely. California moved new systems to a net billing tariff in 2023, while customers on older net metering terms were grandfathered for a set number of years from their interconnection date. Several other states have made similar changes. Ask the utility whether the existing terms transfer to you or reset.

If the system was sized for net metering that no longer applies to a new owner, the savings you were promised in the listing may not match what you will see.

Step 4: Look at real production numbers

Listings often quote the system size in kW. What matters is the energy produced, in kWh per year.

Ask for at least 12 months of monitoring data (an app login, screenshots or an export) and the matching electricity bills. Then compare:

• Actual yearly production versus the original estimate. A drop of a few percent over several years is normal panel aging. A large gap points to shading, soiling, failed panels or an inverter problem.
• Month by month against last year. Output naturally falls in winter, so compare the same months.
• Any flat-zero days or weeks. These usually mean the inverter shut down or the monitoring stopped reporting.

No monitoring access at all is a flag. Ask the seller to reconnect it or provide the inverter's own production history before you firm up.

Step 5: Inspect the system and the roof under it

A general home inspector may note that panels exist, but most do not test them or get on the roof. A dedicated solar inspection covers what they skip.

Roof and mounting:

• Age and condition of the roofing under and around the array
• Flashing and sealant at each mount, and any signs of leaks in the attic below the array
• Loose rails, missing clamps or racking that has shifted

Panels and wiring:

• Cracked glass, burn marks, delamination or browning of the panels
• Wiring hanging loose under the panels or chewed by squirrels
• Corroded or melted connectors

Inverter and electrical:

• Error codes, warning lights and the inverter's installation date
• Rapid shutdown equipment, which the US National Electrical Code (section 690.12) has required on most rooftop systems since the 2014 and 2017 editions phased it in
• Proper labels at the main panel and the disconnect, which inspectors and firefighters rely on

The written report also helps you negotiate if repairs are needed.

Step 6: Plan for the roof

This is the cost buyers most often miss. Panels last 25 years or more. Asphalt shingles often last 20 to 25. If the roof under the array has 5 years left, you will eventually pay for the roof plus panel removal and reinstallation, which is a separate trade job with its own price.

Ask when the roof was last replaced, and whether it was done before or after the panels went up. If the roof is near the end of its life, factor the removal and reinstall cost into your offer.

Step 7: Check the battery, if there is one

A battery adds value only if it works and has warranty left. Note the battery model and capacity in kWh, its install date, and which circuits it backs up during an outage. Battery warranties are often limited by years or by total energy cycled, whichever comes first, so the monitoring app's cycle count matters.

Step 8: Talk to your insurer and your lender

Tell your home insurer about the system before closing, since some policies need it added to the dwelling coverage. Your mortgage lender will also want to know about any lease, PPA, UCC filing or PACE assessment.

Frequently asked questions

Do solar panels transfer with the house when you buy it?

Owned systems transfer with the property like any other fixture. Leased systems and PPAs do not belong to the seller, so the buyer either takes over the contract with the solar company's approval or the seller buys out the contract before closing. Read the contract to know which applies.

Can a buyer refuse to take over a solar lease?

Yes, you can make your offer conditional on the seller buying out or otherwise ending the lease. Whether the seller agrees is a negotiation. If you do take it over, the solar company will usually run a credit check and require you to sign a new agreement.

How can you tell if a solar system is still working properly?

Compare at least 12 months of production data with the original estimate and with the same months the year before. Look for error codes on the inverter and any periods of zero output. A solar inspection can test each string of panels and the inverter to find problems the numbers alone do not explain.

Are solar panel warranties transferable to a new owner?

Most panel and inverter manufacturer warranties transfer to a new owner, but some require registration or notice within a set time after the sale. Installer workmanship warranties vary more, and they are worth little if the installer has closed. Ask for every warranty document and check the transfer terms before closing.

Getting the system checked before you buy

If you are buying a home with solar anywhere from Toronto to Montréal or across the US, a pre-purchase inspection gives you the condition of the panels, inverter and mounts in writing before you commit. Send the address and what you know about the system through the quote form, and a local solar specialist reviews it and sends a written quote.