Sell a House With Solar Panels in Arizona
Solar panels can help a sale or slow it down. Which one depends on a single question: who owns the system? If you paid for the panels and owe nothing, they are part of the house...
(928) 928-4109 — talk to the person who actually writes the offer.What this means in practice
Solar panels can help a sale or slow it down. Which one depends on a single question: who owns the system? If you paid for the panels and owe nothing, they are part of the house, like the air conditioner. If you financed them, there is a loan to pay off, and the lender may have recorded a notice against your property. If you lease the panels or buy the power under a power purchase agreement (PPA), a solar company owns the system on your roof, and a contract that may have many years left has to go somewhere when you sell. Arizona adds one more piece. Your credit for extra power sent back to the grid depends on your utility and on when the system was connected, and those terms do not always pass to a buyer the same way. This page walks through each case so you can find your contract, get the right numbers, and choose the best way to sell.
When this path makes sense
- You lease your panels and the buyer does not want the lease
- A buyer did not qualify to take over your solar contract
- The solar buyout or loan payoff is more than you expected
- A title report shows a solar filing you did not know about
- The solar company is slow to answer and your closing date is near
- The panels or the roof under them need repairs
- You inherited a house with a solar contract in someone else's name
- You need to sell fast and cannot wait on a transfer approval
How the process goes
- Tell us what kind of solar you have. Call or use the form. Tell us if the system is paid off, financed, leased or on a PPA, and who the solar company is. If you have the contract or a recent statement, that helps.
- We look at the house once. One visit to see the house, the roof and the equipment. No repairs, cleaning or showings.
- A written cash offer that counts the solar. Our offer spells out how the solar is handled: paid off in escrow, bought out, or assumed. It will be below open-market price. You can say no.
- Title clears the filings and you close. The Arizona title company orders payoff or transfer papers from the solar company, gets any recorded filing released or assumed, pays what is owed from the sale, and records the deed.
What it costs
You pay no commission and no repair costs, and we pay the normal closing costs. What you may still owe is the solar itself. If the panels are financed, the loan payoff comes out of your sale proceeds at closing, the same way a mortgage does. If they are leased or on a PPA and the contract is being bought out, that buyout amount is paid from your proceeds too. If the contract is transferred to the buyer instead, the solar company may charge a transfer fee, so ask them. Get these numbers in writing before you accept any offer. Our cash offer will be below what the house could sell for on the open market. You trade some price for a quick sale and for not having to find a buyer who wants your solar contract.
The Arizona-specific legal + regulatory backdrop
Three Arizona rules are worth knowing before you sell a solar home. First, your contract. A.R.S. § 44-1763 requires residential solar sale and lease agreements to disclose any restriction on transferring the system or the agreement. They must also disclose any restriction on transferring ownership of the house itself, including whether a transfer needs review or approval by a third party, and give the name, address and phone number of whoever approves it. So the transfer rules should be in your paperwork. Second, recorded filings. Under Arizona's commercial code, A.R.S. § 47-9334, a lender or solar company can hold a security interest in goods that become fixtures and protect it with a fixture filing in the county records. That filing shows up when the title company searches your property. It has to be released, paid off or assumed before closing. Third, your utility. For APS customers, the frozen net metering rider (Rate Rider Legacy EPR-6) covers systems connected before September 1, 2017. It says the grandfathering period is 20 years from the first interconnection date, applies to the site, and may be transferred to a new customer purchasing the home. It also says a customer who leaves the grandfathered program cannot come back. A buyer who picks a different rate plan at move-in could lose it for good. For Tucson Electric Power, TEP's residential solar page says grandfathered net metering plans from before September 20, 2018 keep their original rate for a 20-year term, and that newer systems get an export rate locked for 10 years from the application date. That page does not say what happens when the home is sold. We could not find a published SRP rule on what happens to a solar price plan when a home changes hands. For TEP and SRP, and for newer APS systems, call the utility before you list. Ask what a new owner will get, and ask for the answer in writing.
What to watch out for in solar panels situations
Some patterns to avoid regardless of which buyer you talk to:
- Telling buyers the panels are owned when they are leased or on a PPA.
- Waiting until escrow to ask for a payoff, buyout or transfer packet. Solar companies can take weeks.
- Assuming the buyer will qualify. Most solar companies must approve the new owner before a lease or PPA transfers.
- Promising a buyer your utility rate plan before the utility confirms it in writing.
- Removing leased panels yourself. You do not own them, and removal can damage the roof and break the contract.
- Forgetting the recorded filing. A paid-off loan can still show on title until a release is recorded.
How this stacks up against the alternatives
If you own the panels outright, listing with an agent is often the better choice. Owned solar is a selling point, and Fannie Mae's lending guide lets an appraiser count owned panels in the home's value. A financed system can also be listed. The loan is paid from your proceeds at closing and the filing is released. Leased and PPA systems are harder. Fannie Mae's guide says the value of leased or PPA panels cannot be included in the appraised value, so the system may add little or nothing to the price a financed buyer can pay. The buyer usually has to apply with the solar company and be approved to take over the contract. If they are turned down or do not want it, you are left with a buyout or a new buyer. A cash sale to us skips the buyer's loan approval and the appraisal. We can take over a contract or have it paid off in escrow, and we work with whatever the title report shows. Our price will be lower than a good open-market sale. If your system is owned, your home is in good shape and you have time, list it. If the contract is blocking a sale or you are short on time, call us.
Questions we get
Can I sell my house if the solar panels are leased?
Yes. You have three basic paths. The buyer applies with the solar company and takes over the lease. You buy out the lease so the system is paid off at closing. Or you sell to a buyer who agrees to handle the contract. Your lease lists the transfer rules and who approves a transfer. Read it before you price the house.
What is a UCC filing and why is it on my title report?
It is a public notice that a lender or solar company has a claim on the solar equipment attached to your house. Arizona law allows this kind of fixture filing under A.R.S. § 47-9334. It is not a mortgage, but the title company will ask for it to be released, paid off or assumed before the sale closes.
Do I have to pay off my solar loan when I sell?
Usually, yes. If the loan is secured by the equipment and a filing is recorded against your property, the title company will normally pay the loan from your sale proceeds and get a release. Some lenders may let a buyer assume the loan. Ask your lender for a written payoff statement early.
Will the buyer keep my APS net metering?
For APS systems grandfathered under the frozen EPR-6 rider, the rider says grandfathering may be transferred to a new customer purchasing the home, for the rest of the 20 years from the original interconnection date. The rider also says a customer who leaves the program cannot return. The buyer should confirm the plan with APS when opening the account.
What about SRP and TEP solar plans?
TEP's website describes a 20-year term for older grandfathered net metering and a 10-year locked export rate for newer systems, but it does not say what happens when the home sells. We could not find a published SRP rule on this either. Call the utility, ask what a new owner gets, and get it in writing.
Do solar panels raise the sale price?
It depends on who owns them. Under Fannie Mae's guidelines, an appraiser can consider panels the homeowner owns, but the value of leased or PPA panels cannot be included in the appraised value. A leased system with a monthly payment can even shrink the pool of buyers. We will not quote a number here because it varies by house.
Will you buy a house with a solar lease or loan?
Yes. We buy Arizona houses as-is, including homes with leased, financed or PPA solar. We are a principal buyer, not a broker or agent. The solar balance or contract is worked out through the title company. Our offer will be below open-market value, and we will tell you if listing looks like the better move.
Sources: A.R.S. § 44-1763 - Distributed energy generation system agreements; disclosures · A.R.S. § 47-9334 - Priority of security interests in fixtures and crops · APS Rate Rider Legacy EPR-6 (frozen net metering rider, effective March 8, 2024) · Tucson Electric Power - Residential Solar Systems · Fannie Mae Selling Guide B2-3-04 - Special Property Eligibility Considerations (properties with solar panels)
If it's the right fit
Not sure what kind of solar contract you have or what it will cost to close it out? Call (928) 928-4109, Monday through Saturday, 8am to 8pm Arizona time, or use the form below. We will help you sort out what to ask the solar company, whether you sell to us or not. This is general information, not legal or tax advice. Talk to an Arizona attorney or CPA about your situation.
Other situations we work with
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