09/17/2026
Let me share a recent solar situation I experienced during a home sale—and this is something every homeowner needs to know.
My seller installed solar panels about four years ago and was paying approximately $250 a month. The solar system was purchased, but there was still a balance being financed.
Before we opened escrow, we reviewed the solar contract, and there was nothing clearly stating that the contract would not be transferable.
We went into escrow, disclosed the solar to the buyer, and everything seemed fine.
Then, in the middle of escrow, we got a major surprise.
The solar company told us the contract could not be transferred unless the seller paid approximately $11,000 to bring the loan balance down to a certain amount.
My buyer was already putting 20% down plus approximately 3% in closing costs, so coming up with another $11,000 wasn't realistic.
The seller had to sell, so he agreed to contribute the $11,000 from his proceeds. But then—we received another surprise. The solar company came back and said the contract still could not be transferred.
Ultimately, after extending escrow and finding additional funds, we were able to pay off the solar completely and finally move toward closing.
And here's another issue: the solar company refused to remove the panels. They told the seller he would have to hire another company—and any roof damage would not be their responsibility.
The lesson? Before you install solar, read that contract carefully. Know exactly what happens when you sell your home, whether it's transferable, what the payoff requirements are, and who is responsible for removal and any damage.
Solar can be a great investment—but if you don't understand the contract, it can become a very expensive surprise when you sell
