The solar industry is booming. As of 2019, there were more than 2 million residential solar installations in the U.S., and that number is projected to double by 2023.
One way builders and homeowners are looking to install solar systems is through a lease or power purchase agreement (PPA) (i.e., a “solar agreement”) with a third-party solar provider. But solar agreements are known to create unique challenges when selling a home.
If you own a home with a solar agreement, your Realtor may be able to help you navigate potential complications with the sale.
SOME ISSUES THAT SELLERS MAY EXPERIENCE INCLUDE:
5 TIPS FOR A SMOOTH CLOSING
Contact the solar contractor company early in the selling process whether the property is tied to a solar agreement. The terms for transferring a solar agreement may impact the marketability of a property, and disclosure to potential buyers is important.
REQUEST A COPY OF THE SOLAR AGREEMENT
Provide a copy of the current solar agreement to your Realtor. If you don’t have a copy, you should request it from the solar company.
Unfortunately, misconceptions about solar agreements are common. It’s important that buyers and sellers fully understand the terms of their solar agreement, including its transfer rights and requirements at the time of the sale of the home. Many solar companies have dedicated representatives to assist with the lease transfer process, but you may wish to consult with an attorney first.
COVER ALL YOUR BASES
When selling a home subject to a solar agreement, it helps to work with a trusted title company that can alert you to potential title problems that need to be addressed prior to closing.
KEEP LINES OF COMMUNICATION OPEN
Early in the process, provide your Realtor should provide the closing team with as much information as possible about the transaction. What they don’t know could cause delays to the closing process.
Pete Sabine & Leslie Whitney
Call or text 925.787.2548