Coastal San Diego · Seller guides · Home systems

Selling a home with solar panels in San Diego

Short answer: Solar panels sell one of two ways. If you own them outright, they are part of the home. If they are leased, or paid off through a contract or a tax-bill loan, the buyer has to take it over or you pay it off. Find out which you have before you list.

Lots of homes in La Jolla and around coastal San Diego have solar panels. When we list, my first solar question is simple: who owns them?

This guide explains the main setups in plain words and what to gather. It is not legal or tax advice.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help sellers in coastal San Diego sort out home systems and paperwork before buyers ask. You can talk about fees with Weston directly. This form does not give a commission quote.

Talk to Weston Jump to FAQ Seller net sheet

Related: Seller forms · Association rules · Protecting ownership · How the sale runs · Guides · Mello-Roos · When to sell

Owned panels

If you paid cash, or your solar loan is paid off, you own the panels. They go with the home like a water heater. Gather the install papers, warranties and any monitoring logins to hand over.

Leased panels or a power contract

Some homeowners lease panels or sign a power purchase agreement (PPA). That is a contract to buy the power the panels make. The solar company owns the panels.

The state utility agency, the CPUC, warns: “If you sell your house before the lease or PPA contract is over, you will have to pay the solar provider the remainder of the value of the lease or PPA or transfer the contract to the new property owner.”

In plain words, call the solar company early. Ask what the buyer needs to qualify and how long the transfer takes.

Solar loans and tax-bill loans

A solar loan may need to be paid off from the sale. Some homes have a PACE loan. That is a loan paid through the property tax bill, and it is tied to the home.

Liens from solar deals may show up in the title company’s list of what is recorded. My guide to protecting ownership explains that list. My seller net sheet helps you plan payoffs.

If your home has an association

If you live in a community with an HOA, short for homeowners association, its rules may cover solar. California Civil Code section 714(a) says:

“Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.”

Section 714(b) adds: “This section does not apply to provisions that impose reasonable restrictions on solar energy systems.” In plain words, an association can’t ban solar, but it can set fair limits. See my HOA guide.

What to gather before you list

• Whether the panels are owned, leased, under a contract or on a loan.
• The contract, warranties and the solar company’s contact.
• Any association approval, if you have one.
• Share it all in your seller forms. My guide to seller forms explains them.

My guide to how a sale runs shows where the transfer fits.

General information only

This guide explains process. It is not legal, tax or financial advice. Ask the solar company and your own advisors about your contract.

More on sandiego.homes

• Disclosures: what sellers must share
• HOA: association rules
• Title insurance: what is recorded on a home
• Seller net sheet: see your sale on paper

• More: All guides · La Jolla · Real estate terms

Talk with Weston about selling a home with solar

Tell me how your panels are set up. I’ll help you gather what buyers and the solar company will ask for.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

Free tools: What is my home worth? · What would I take home? · Real estate words in plain English

Have another question? Quick answers to common questions

Sources

• CPUC — Solar Consumer Protection Guide
• California Civil Code § 714
• sandiego.homes — Disclosures
• sandiego.homes — HOA