Path-Q Solar

Can a home buyer require the seller to remove or buy out a leased solar system before closing?

Answer

A buyer can generally make removal or buyout a condition of the offer, but whether the seller can satisfy it depends on the lease or power-purchase agreement, the provider's terms, the property contract, and applicable law. The buyer should not assume the seller can cancel the arrangement without provider approval or charges.

Key points

  • The solar agreement may require assumption, prepayment, transfer, or an approved buyout rather than simple removal.
  • The purchase agreement should state who obtains the provider's payoff or transfer terms and who pays any resulting cost.
  • Removal can affect the roof, permits, warranties, and closing schedule.

What it depends on

  • The lease or power-purchase agreement
  • The purchase agreement and negotiated contingencies
  • Provider approval and payoff or removal terms
  • Applicable property and contract law

Risks and trade-offs

  • A demanded buyout may reduce negotiating flexibility or delay closing.
  • Removing equipment can create roof damage, restoration costs, or loss of production benefits.
  • Assuming the lease may be less disruptive but leaves the buyer with continuing obligations.

Information you may need

  • A complete copy of the solar contract and current account statement
  • The provider's written transfer, buyout, and removal options
  • The proposed purchase agreement and closing timeline
  • Advice from the buyer's real-estate or legal professional

Your next step

What to do next

Make the offer subject to review of the solar agreement and obtain the provider's written buyout, transfer, and removal terms before waiving the contingency.

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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.

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