Path-Q Solar

What should I do before signing a purchase agreement for a home with leased solar equipment?

Answer

Obtain and review the complete lease before signing, then make the purchase conditional on acceptable transfer, payoff, or removal terms. Confirm every payment, obligation, warranty, access right, and lender requirement rather than assuming the lease transfers automatically.

Key points

  • Review remaining term, payment schedule, escalators, performance provisions, insurance, maintenance, and default terms.
  • Check buyer qualification, provider consent, credit review, transfer fees, buyout, and removal options.
  • Confirm whether the system is included in the sale and who owns roof attachments and related equipment.
  • Ask the lender and title professional whether the lease creates underwriting, lien, or closing issues.
  • Require written delivery of monitoring, warranties, service contacts, and utility-account responsibilities.

What it depends on

  • Lease or power-purchase agreement
  • Provider transfer and buyout rules
  • Purchase contract, title, and lender requirements
  • System condition and roof status

Risks and trade-offs

  • Assuming the lease may create long-term payment and access obligations.
  • Buyout or removal may be costly and can affect closing or the roof.
  • A low initial payment may not remain low if the contract escalates payments.

Information you may need

  • Complete lease and payment history
  • Transfer, payoff, and removal terms
  • Production, maintenance, and warranty records
  • Lender and title requirements

Your next step

What to do next

Make lease review and written provider approval a contract condition before becoming bound to the purchase.

Path-Q

Find the right next step

Answer a few questions and we’ll narrow your options.

Loading…

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

SQ02792