Buying a Home With Solar Panels? Check These First
Solar panels on a listing can feel like a bonus, and sometimes they are. Other times they come with a monthly lease payment, a lien, a roof nobody's looked at underneath, or a system that quit producing a while back and nobody noticed.
You can't tell which one you've got from the driveway. The answers are in the paperwork, the utility account, and the equipment, and you've got to sort them out inside the same short inspection window you're already juggling, often 10 to 15 days. If you're buying a house with solar panels, the sooner you start asking, the more time you'll have to negotiate.
Before you buy a home with solar panels, find out who owns the system, whether it's actually producing power, and what shape the roof is in. Ask the seller for the purchase, loan, lease, or power purchase agreement, the equipment warranties, the utility interconnection paperwork, and a full year of electric bills. Leased and financed panels can affect your mortgage and appraisal. In Missouri, a new owner has to file a new interconnection application with the electric utility. A standard home inspection doesn't evaluate the solar system itself, so a dedicated solar inspection is how you confirm it's working.
Who owns the solar panels?
Start here, because the answer changes almost everything else. Most systems fall into one of these setups:
Owned outright. The seller paid cash or paid off the loan. The panels typically go with the house, but make sure your contract says so.
Financed. The seller has a solar loan that isn't paid off. The lender may hold a security interest in the panels, sometimes recorded in the county land records as a UCC fixture filing.
Leased. A solar company owns the panels, and the homeowner pays a monthly fee to use them.
Power purchase agreement (PPA). A solar company owns the panels, and the homeowner buys the power they produce at a contract price.
PACE financing. The cost is repaid through the property tax bill, with a lien on the property.
What should you ask the seller for?
Have your agent request these right away:
The purchase receipt, loan agreement, lease, or PPA
Warranties for the panels, inverter, and any battery, plus any installer workmanship warranty
The utility's interconnection approval and net metering agreement
Permit and final inspection records
A full year of electric bills, so you can see every season
Production history from the monitoring app, if there is one
We don't verify permits during a home inspection, so that piece runs through the seller or your local building department.
With leased solar panels or a PPA, you aren't buying the panels. You'd be taking over the seller's contract. The Federal Trade Commission notes these contracts can require written notice before a transfer, and the buyer may have to meet credit requirements or pay fees. Some contracts last 20 years, and payments can go up over time.
Read the contract for the monthly payment, years remaining, any scheduled increases, who handles repairs, and what happens if the roof needs work.
How do solar panels affect your mortgage and appraisal?
Your lender needs to know exactly how the panels are owned. Under Fannie Mae's guidelines, which many conventional loans follow:
Leased or PPA panels can't be counted in the appraised value, and the lender has to review the agreement.
Lease payments generally count toward your debt-to-income ratio, with a narrow exception.
Payments on financed panels count too, and a fixture filing recorded ahead of your new mortgage has to be subordinated.
A PACE loan on the panels has to be paid in full at or before closing.
FHA, VA, and USDA loans have their own rules. Get the solar paperwork to your lender and title company early.
Can you keep net metering after you buy?
Missouri's Net Metering and Easy Connection Act (RSMo 386.890) covers Ameren Missouri and other utilities regulated by the Public Service Commission, plus rural electric cooperatives and municipal utilities. Three parts matter to buyers:
A new owner has to file a new interconnection application with the utility.
A grid-tied system can't run without the utility's written approval.
The seller's banked bill credits expire when they disconnect service or end net metering, so they don't come with the house.
Call the utility early and ask what they need, how long approval takes, and how they credit power you send back to the grid.
What about the roof under the panels?
Panels cover part of the roof, so nobody can see the roofing directly under them during a visual inspection, including us. During a complete home inspection, we use a drone to view the roof, weather permitting, and check the roofing around the array and wherever hardware or wiring passes through it. In an accessible attic, we look for staining or other signs of leaks under the panels.
The FTC says residential solar is designed to stay on a home for at least 20 years. If the roof is older than the panels, replacing it later means removing and reinstalling the panels, which adds cost. With a lease, check who handles that work and who pays.
Does a home inspection check solar panels?
Not the solar system itself. The InterNACHI Standards of Practice, which we follow, don't require home inspectors to inspect solar or photovoltaic systems. A standard inspection notes the panels are there, but it won't tell you whether they're producing or what shape the equipment is in.
For that, we offer a separate solar panel inspection. Sean is SPRK Solar certified, and the inspection covers system condition and installation safety, verified energy production, equipment age and lifecycle, and a graded A through F assessment of the system's value and remaining years of savings. Book it on its own, or add it to a complete home inspection and get everything done in one visit.
Ownership paperwork, lender requirements, and the utility transfer still run through you, your agent, your lender, and the title company.
The bottom line
Solar can be an asset at closing or an expensive surprise. Request the documents on day one, loop in your lender and utility early, and book the solar inspection with your home inspection so you have real information while there's still time to negotiate. What you do with it is up to you and your agent.
Frequently asked questions
Do solar panels add value to a home? It depends on who owns them. Under Fannie Mae guidelines, leased or PPA panels can't be counted in the appraised value, and separately financed panels generally can't add value unless the loan documents show they can't be repossessed. Panels the homeowner owns outright can be considered under standard appraisal rules.
Can I take over a solar lease when I buy a house? It depends on the contract and the solar company. The FTC notes these contracts may require written notice before a transfer, and the buyer may have to meet credit requirements or pay fees. Start that process as soon as your offer is accepted.
Does a home inspection include solar panels? Not the solar system itself. The InterNACHI Standards of Practice don't require home inspectors to inspect solar systems, so a standard inspection won't confirm whether the panels are producing. A separate solar inspection evaluates the equipment, energy production, and installation safety.
Do the seller's net metering credits transfer to me in Missouri? Generally, no. Under RSMo 386.890, net metering credits expire when the customer-generator disconnects service or ends the net metering relationship, and the new owner has to file a new interconnection application with the utility.
Can I claim the federal solar tax credit on a house that already has panels? Not under current federal law. The residential clean energy credit (Section 25D) doesn't apply to expenditures made after December 31, 2025. Talk with a tax professional about your specific situation.
What documents should I ask for when buying a house with solar panels? The purchase receipt, loan agreement, lease, or power purchase agreement; warranties for the panels, inverter, and any battery; the utility's interconnection approval and net metering agreement; permit records; a full year of electric bills; and production history from the monitoring app.
I'm selling a home with solar. What should I have ready? Gather the same documents a buyer will ask for before you list. If the panels are leased or financed, contact the company about its transfer or payoff process. Getting a home inspection before selling, paired with a solar inspection, puts documented information in front of buyers early.
Buying or selling a home with solar?
See what the solar inspection covers, look through our sample inspection reports, or schedule your inspection. We offer same-week scheduling, and your complete home inspection report arrives within 24 hours. Current rates are on our pricing page.
Tech Inspect Home Services LLC · 3580 Highway T, Marthasville, MO 63357 · 636-201-6366 · sean@techinspecthome.com
