Do leased solar panels affect closing?

Yes. Buyers may need to assume the lease or the seller must buy it out. Some lenders restrict active leases.

Do owned panels add appraised value?

Owned systems can contribute value when documented with proof of purchase, warranties, and production data.

What title issues are common?

UCC filings or liens from the solar company. These must be cleared before settlement.

Selling a Home with Solar Panels: What Sellers Need to Know Before Listing

sharonmezei0
Oct 14
2 min read

Solar panels are a popular home upgrade that can attract eco-conscious buyers and lower energy costs—but when it comes time to sell, they can also introduce challenges. Whether your panels are owned or leased dramatically affects the transaction, financing, and title process.

Here’s what every Maryland seller should know before listing a home with solar panels.

1. Owned Solar Panels: Simpler and Stronger

If you purchased your solar panels outright, that’s good news—this is the cleanest path to conveyance.Owned panels are treated as part of the property and can enhance your home’s appraised value, especially when properly documented.

What you’ll need to provide:

Proof of purchase or paid-in-full invoice
Warranty and installation documents
Utility statements showing energy production and savings

Having this paperwork ready makes your property more attractive and helps your buyer’s lender confirm system ownership.

2. Leased Solar Panels: Handle With Care

Leased panels create a more complex sale. The leasing company retains ownership, so the buyer must assume the lease or the seller must buy it out before closing.These deals often involve additional approval timelines and can affect financing.

Potential roadblocks include:

Loan delays or denials if the lender disapproves of the lease
Complicated maintenance or warranty transfer terms
Recorded UCC filings (liens) that must be cleared before settlement

Pro tip: Contact your solar company before listing. Ask for their lease assumption package and confirm any buyout options. This avoids last-minute setbacks once your home is under contract.

3. Appraisal and Title Implications

For appraisers, owned systems may contribute value; leased systems generally do not.Title companies also need to confirm no liens exist against leased panels. Failing to remove a recorded UCC lien can delay or even block closing.

That’s why involving your Realtor® and title company early ensures a smoother process and a confident buyer.

4. The Smart Seller’s Move

Preparation is power. Gather your solar documentation before listing and work with a Realtor® experienced in unique property situations. With the right preparation, your home’s solar system can be a selling advantage rather than a hurdle.

Bottom Line

Solar panels can help your home stand out—but understanding ownership, leases, and documentation makes all the difference.When properly handled, solar panels can shine as an asset instead of a complication.