You finally find the perfect house for you, and it has a leased solar system in place.  What does this mean for you? The main thing to keep in mind is that it is not easy to get out of a solar lease once you assume it, so it's very important to understand what you are agreeing to. It could cost tens of thousands of dollars to pay off the lease, and that doesn't always ensure you will own the equipment.  Different Solar Companies have different rules so it's important to do your research.
Here are some Frequently Asked Questions about assuming a Solar Lease when purchasing a home.  Getting answers to these questions can help you do your research before agreeing to assume the Solar Lease.  

 

  • What are the terms of the lease?
  • What are the total monthly costs for the Solar System?
  • Does the lease payment increase throughout the life of the lease, or is it fixed? Is there an annual escalation or a monthly escalation in the payment?
  • What is the remaining time left on the lease?
  • How does the Solar Lease assumption process work?
  • What are the requirements for transferring the lease? What are the assumption requirements?
  • Will you pull my credit?
  • What are the transfer fees?
  • Are there any other fees involved?
  • What happens at the end of the lease? What are the termination options and potential costs?
  • Will I ever own the Solar System? If not, can I purchase the Solar System after the lease is satisfied?
  • Are there any output and production guarantees? What happens if the system does not perform?
  • How old is the Solar System?
  • Does the Solar Company ever update the Solar System?
  • Who is responsible for system maintenance?
  • Is there a roof warranty?
  • What happens if I need to replace the roof? Will the Solar Company remove, store, and reinstall the Solar Panels? Is there a cost for this?
  • If the Solar System is removed at the end of the lease, who pays to repair the roof?
  • Is there a minimum amount of insurance coverage on the house required?
  • Do I have to add the Lessor as an additional insured party to my insurance?
  • How much did the previous owner pay each month to the electric company in addition to the lease payment?
  • How well has the Solar System been maintained?
  • Any maintenance receipts or records?

The Solar Company can answer all of the questions except the seller's electric bill history.  The seller should provide that to you with the other solar documents after you are under contract.   However, sometimes your REALTOR can get that information to you sooner if it is available.  

If you have any further questions, fill out the form below, and I will get back to you ASAP.  I am not a solar expert, but I can get you in touch with someone who can answer your questions if needed.  It is best to seek legal advice from a lawyer if you have any concerns about assuming the Solar Lease.