What Happens If I Move After Installing a Solar Panel Kit?

Moving with solar panels is easier than most homeowners fear—but it's not always simple. The reality in 2025 is nuanced: homes with solar systems sell for 4.1-6.9% more than comparable homes (roughly $9,000-$29,000 depending on home value and location) and sell 20% faster according to recent data. But that premium comes with conditions—especially if you have a leased system or face an appraiser who undervalues solar.

Here's what the 2025 market tells us: owned solar systems transfer smoothly and command strong premiums. Financed systems are manageable with proper planning. Leased systems? They can be complicated, particularly with recent solar company bankruptcies causing transfer delays and buyer hesitation. Approximately 10-20% of potential buyers will walk away from lease obligations, even if the monthly payments are lower than their previous utility bills.

This guide addresses both the opportunities and the challenges.

Key Takeaways

• Solar panels increase home value by 4.1-6.9% nationally ($9,000-$29,000 for median $417,000 home), with homes selling 20% faster—but premiums vary significantly by region and ownership type

• Owned systems transfer smoothly and are most attractive to buyers—minimal complications beyond standard documentation

• Financed systems typically require loan payoff at closing using sale proceeds—plan for this in your pricing strategy

• Leased systems face the most challenges: 10-20% buyer drop-off, potential transfer delays (especially post-bankruptcy complications), and possible need for buyout or price concessions

• Taking panels with you costs $3,000-$7,000+ in removal/repairs while losing $9,000-$29,000 in home value—rarely makes financial sense

• Appraisal challenges are real—some appraisers undervalue solar systems, requiring documentation and comparable sales data to fight lowball valuations

Solar Helps, But With Conditions

Let's start with the good news, then address the complications you need to know about.

What the Data Shows

According to the most recent studies from Zillow (2019, still widely cited) and SolarReviews (2025), homes with solar sell for a 4.1-6.9% premium over comparable non-solar homes. For the median U.S. home ($417,000), that translates to roughly $17,000-$29,000 in added value. NREL's established metric of $4 per watt suggests a 6 kW system adds approximately $24,000 to home value.

Solar-equipped homes sell 20% faster than comparable homes without solar—a consistent finding across multiple studies through 2025.

Regional Variations Matter:

• California: 5-10% premium ($20,000-$75,000 depending on home value and system size)

• Texas: 4-6% premium ($18,000-$25,000 in urban markets; lower in rural areas)

• Northeast (NY, MA, NJ): 4-5% premium ($15,000-$22,000)

• Florida/Arizona: 4-6% premium ($16,000-$24,000)

• Lower-adoption states: Minimal premiums (0-2%) due to buyer unfamiliarity

What Can Complicate the Sale

The premium isn't automatic. Here are the challenges homeowners report in 2025:

Appraisal Issues: Some appraisers lack solar valuation training and undervalue systems significantly. Here is a quote from a real example: "Owed $9,000 on solar loan, appraiser valued the entire system at $3,000. Fought for weeks to get proper valuation."

Lease Transfer Complications: Solar company bankruptcies (Sunnova, SunPower) in 2024-2025 have created transfer bottlenecks. Reported delays of 2-3 months for lease approvals, with some buyers walking away from deals due to uncertainty.

Buyer Resistance to Leases: Even when lease payments are lower than previous utility bills, roughly 10-20% of buyers refuse to assume 15-20 year lease commitments, preferring owned systems or no solar at all.

Documentation Gaps: Missing permits, warranty documents, or installation records can delay closings or trigger title company holds. One seller reported: "Lost install papers—title company held up closing over missing permits. Added $2,000 in attorney fees."

Market Sensitivity: In 2025's higher-interest-rate environment, buyers scrutinize every additional cost or complexity more carefully than they did in 2020-2022's hot market.

Common Problems Homeowners Face (And How to Solve Them)

Based on real experiences shared by homeowners in 2024-2025, here are the top challenges and their solutions:

Problem 1: Lease Transfer Delays or Denials

What happens: Solar company takes weeks or months to approve buyer qualification. Some companies experiencing financial difficulties have frozen transfers entirely, leaving sellers stuck.

Solutions:

• Start 90 days early: Contact your solar company 3 months before listing

• Have a backup plan: Get a buyout quote upfront in case the transfer fails

• Screen buyers: Ask the buyer's agent to pre-qualify the buyer's credit before going under contract

• Consider buyout: If the company is having financial issues, buying out the lease might be faster than waiting for transfer approval

Problem 2: Buyout Costs Too High

What happens: You want to buy out your lease to simplify the sale, but the buyout amount is $10,000-$15,000+, eating into your expected premium.

Solutions:

• Negotiate with solar company: Some offer discounts, especially if facing bankruptcy or wanting to reduce liabilities

• Compare to price reduction: If losing the lease costs you 2-3 buyers and forces a $15,000 price drop, a $12,000 buyout might be cheaper

• Prepay months: Offer to prepay 12-24 months of lease as buyer incentive rather than full buyout

• Factor into sale price: Price home $10,000-$15,000 higher to offset buyout cost

Problem 3: Underwater on Solar Loan

What happens: You owe more on your solar loan than the appraised value of the system, forcing you to pay the difference out-of-pocket at closing.

Real example: "Financed system at high 2022 rates—still owe $11,000 but system only added $8,000 to appraisal. Had to bring cash to closing."

Solutions:

• Challenge the appraisal: Provide comparable solar home sales and NREL $4/watt documentation

• Use solar-certified appraiser: Request appraiser with solar valuation training

• Price strategically: Build loan payoff into your asking price

• Consider refinancing: If you have time, refinance to lower balance before selling

Problem 4: Missing or Incomplete Documentation

What happens: You can't find original permits, warranty documents, or installation contracts. Title company or lender requires these before closing.

Solutions:

• Digitize everything now: Scan and organize all solar documents before listing

• Contact your installer: Most keep copies of permits and final inspections

• Check with building department: Permits are public record—request copies

• Create a solar information packet: Include everything in one organized folder for easy transfer

Problem 5: Buyers Don't Understand or Want Solar

What happens: Despite lower bills, buyers are unfamiliar with solar technology, worried about maintenance, or concerned about future costs (battery replacement, inverter replacement).

Solutions:

• Educate proactively: Create a simple one-page document showing monthly savings

• Show the monitoring app: Real-time production data makes solar tangible and impressive

• Address maintenance concerns: Emphasize 25-year warranties and minimal maintenance requirements

• For leases: Highlight that monthly lease payment is lower than their likely utility bill

• Work with solar-experienced realtors: They know how to present solar as an asset, not a liability

Problem 6: Appraisal Undervalues Solar System

What happens: Appraiser assigns little or no value to your solar system, undermining your ability to capture the premium and possibly affecting your buyer's financing.

Real example: "Appraiser ignored my 7 kW system entirely. Realtor had to fight with comparable sales data showing $25,000 premium. Took 3 weeks to resolve."

Solutions:

• Request solar-trained appraiser: Fannie Mae has solar valuation guidelines—ask lender to use certified appraisers

• Provide documentation package: Include installation invoice, NREL $4/watt calculation, and comparable solar home sales

• Challenge lowball appraisals: You can formally dispute appraisals with documentation

• Consider appraisal contingency: Build in extra time for potential appraisal challenges

What Happens Based on How You Acquired Your Solar System

Your experience selling depends entirely on your ownership type. Here's what each scenario looks like in 2025:

Solar System Ownership Comparison

Ownership Type	Transfer Complexity	Buyer Appeal	Common Challenges	Success Rate
Owned Outright	⭐ Very Simple	Highest—free equipment + immediate savings	Appraisal undervaluation	95%+ smooth
Active Solar Loan	⭐⭐ Moderate	Good—clean transfer after payoff	Underwater loans, payoff timing	85-90% smooth
Solar Lease/PPA	⭐⭐⭐ Complex	Lower—10-20% buyer drop-off	Transfer delays, buyer qualification, company bankruptcies	60-80% smooth

Scenario 1: You Own Your Solar System Outright

This is the cleanest scenario. Your solar panels are part of your home's real estate, just like the roof or HVAC system.

How It Works

The system automatically transfers with the home sale. No separate paperwork, no negotiations, no complications beyond standard real estate documentation. The buyer receives:

• Free solar equipment (no payments)

• Immediate electricity savings

• Remaining warranty coverage (typically 15-25 years on panels, 5-15 years on inverters)

• Existing net metering agreement with utility

• Access to monitoring system

The Sales Process

1. Disclosure and Marketing: Highlight the system prominently in your listing:

• System size (kW capacity)

• Installation date

• Average monthly production and savings

• Current electric bills (to demonstrate savings)

• Warranty information

2. Appraisal: The appraiser should add approximately $4 per watt of capacity to your home's value. For a 6 kW system, that's $24,000 in added value. However, be prepared for potential undervaluation—have documentation ready to challenge lowball appraisals.

3. Inspection: The home inspector will examine:

• Panel condition and mounting security

• Electrical connections

• Inverter functionality

• Roof condition (checking for leaks or damage)

• Proper permits and utility interconnection

4. Closing: Ownership transfers automatically. Provide the buyer with:

• System documentation and warranties

• Installer contact information

• Monitoring system credentials

• Maintenance records

• Utility net metering documentation

2025 Reality Check

Challenge: Appraisal undervaluation is the main risk. Some appraisers lack solar training and assign minimal value to systems.

Solution: Prepare a documentation package including your installation invoice, production history, comparable solar home sales in your area, and NREL's $4/watt methodology. Request a solar-certified appraiser if possible.

Financial Impact

With an owned system, you capture the full value increase. If you paid $18,000 for a 6 kW system (after federal tax credit) and it adds $24,000 to your sale price, you've gained $6,000 in equity—plus all the electricity savings you enjoyed while living there.

Most buyers simply roll the higher home price into their mortgage, making it cash-flow positive from day one as the slightly higher mortgage payment is offset by dramatically lower utility bills.

Scenario 2: You Have an Active Solar Loan

If you financed your solar system and still owe money, you have three practical options:

Option 1: Pay Off the Loan at Closing (Most Common)

This is the standard approach. You use proceeds from the home sale to pay off the remaining solar loan balance at closing—just like paying off a home equity loan or second mortgage.

Process:

• Your closing attorney/title company coordinates payoff with solar lender

• Loan payoff deducted from your sale proceeds

• Solar system transfers to buyer free and clear

• Buyer gets owned system with no payments

Example:

• Home sells for: $425,000

• Remaining solar loan: $8,500

• Your net proceeds: $425,000 - $8,500 (solar loan) - closing costs - mortgage payoff

Since the solar system added $15,000-$25,000 to your sale price, paying off an $8,500 loan still leaves you with net gains.

Option 2: Transfer the Loan to the Buyer (Uncommon)

Some solar lenders allow loan assumption, where the buyer takes over your remaining payments. This requires:

• Lender approval (buyer must qualify)

• Buyer willingness (most prefer not to have separate solar payments)

• Additional documentation and complexity

2025 Reality: Most buyers prefer NOT to assume solar loans. They'd rather finance the slightly higher home price through their mortgage (typically lower interest rates, tax-deductible interest) than take on a separate solar loan payment.

Option 3: Negotiate with the Buyer

You might negotiate who pays the loan:

• Seller pays full balance: Simplest approach

• Buyer pays balance, seller reduces price: Buyer agrees to pay off loan post-closing, seller reduces price by that amount

• Split the balance: Both parties contribute

2025 Challenge: Underwater Loans

In 2025's market, some homeowners financed solar at high interest rates (2022-2023) and owe more than the appraised system value.

Example: You financed $25,000 at 7.5% interest in 2022, still owe $11,000, but the appraiser only values the system at $8,000.

Solutions:

• Challenge the appraisal with proper documentation

• Price your home higher to absorb the payoff

• Refinance before selling if you have time

• Use personal savings to cover the gap if necessary

The good news: This is relatively rare. Most solar systems add more value than their remaining loan balance, meaning you're building equity, not losing it.

Scenario 3: You Have a Solar Lease or PPA

This is the most complex scenario and where most complications arise in 2025.

How Solar Lease Transfers Work

Step 1: Early notification (60-90 days before listing) Contact your solar company to begin the transfer process. They'll provide:

• Lease transfer requirements and timeline

• Buyer qualification criteria (typically 650+ credit score, income verification)

• Transfer fees (usually $0-$250)

• Current lease terms and buyout quote

Step 2: Full disclosure You must disclose the lease prominently in your listing and property disclosures:

• Monthly payment amount

• Remaining term (typically 10-20 years)

• Annual escalator (payment increases, usually 2-3% yearly)

• Solar company contact information

• Buyout option and cost

Step 3: Buyer qualification Once you have a buyer, the solar company will:

• Run credit check and income verification

• Review and approve/deny within 2-4 weeks (longer if company has financial issues)

• Provide lease assumption documents

Step 4: Transfer completion After approval:

• Buyer signs lease assumption agreement

• Monitoring access transfers

• You're released from lease obligation

• Transfer recorded at closing

The 2025 Challenge: Bankruptcies and Delays

Solar company financial troubles have significantly complicated lease transfers:

Sunnova and SunPower challenges: Both companies faced bankruptcy proceedings in 2024-2025, causing major delays in lease approvals. Some transfers took 3+ months instead of the typical 2-4 weeks.

Buyer drop-off: Approximately 10-20% of buyers walk away from deals involving solar leases, even when monthly payments are lower than utility bills. Reasons include:

• 15-20 year commitment concerns

• Preference for owned systems

• Confusion about terms

• Credit qualification issues

• Transfer delay frustration

Real impact: "Buyer walked after 3-month lease transfer delay. Lost $15,000 in sale price finding new buyers willing to assume lease."

Your Options with a Leased System

Option 1: Transfer the lease to buyer This works when:

• Buyer has good credit (650+) and qualifies

• Solar company is financially stable with quick approvals

• Monthly lease payment is clearly lower than utility bills

• You emphasize long-term savings and warranty coverage

Option 2: Buy out the lease Contact your solar company for a buyout quote. Costs typically range from $8,000-$15,000 for systems halfway through 20-year leases.

When it makes sense:

• Buyout is less than expected price reduction from lease complications

• Solar company transfer delays are causing you to lose buyers

• You can roll buyout into your sale price and still capture premium

2025 tip: Companies facing bankruptcy may offer discounted buyouts to reduce liabilities. Ask about negotiated buyout discounts.

Option 3: Prepay lease months as buyer incentive Offer to prepay 12-24 months of lease payments, essentially giving the buyer "free" solar for 1-2 years. Cost: $1,200-$3,000 typically, which might be cheaper than losing buyers or reducing price significantly.

Option 4: Price reduction If the lease significantly reduces buyer interest, you may need to reduce your asking price by $5,000-$15,000 to compensate. The reduction should be less than the buyout cost but enough to make buyers comfortable with the lease obligation.

State-Specific Lease Requirements

Several states have strict solar lease disclosure laws:

California: Comprehensive disclosure required, including all payment terms, escalators, and transfer procedures. Violations can delay closings.

Texas: Written disclosure required; some lenders impose additional requirements for leased systems.

Florida: Lease terms must be fully disclosed before purchase agreement.

New York: Detailed lease disclosure including all financial obligations and transfer terms.

Always check your state's specific requirements and work with a real estate attorney familiar with solar transactions.

Can I Take My Solar Panels With Me When I Move?

Technically yes, but the math rarely works out. Here's why:

The Real Costs in 2025

Professional removal and reinstallation: $2,800-$4,800 for a typical 14-16 panel system

Roof repairs: $500-$2,000 to repair penetrations, replace flashing, and restore roof to sellable condition

Lost home value: $9,000-$29,000 in premium you won't capture since buyers expect solar-equipped homes to include solar

New permits and interconnection: $500-$1,500 at your new home for building permits and utility connection

Potential equipment damage: Panels and mounting hardware can be damaged during removal, adding $1,500-$3,000 in replacement costs

Total cost: $13,000-$36,000+ when you factor in removal, repairs, lost premium, and reinstallation

When Removal Might Make Sense

There are three rare scenarios where taking panels could be justified:

1. Very new installation (under 1 year): The system hasn't had time to significantly increase home value yet, and equipment is still brand new with full warranties.

2. Extremely premium equipment: If you have specialized high-efficiency panels or unique equipment that's difficult or expensive to replace, removal might be worthwhile.

3. Moving to much larger home where expansion is planned: If you're upgrading to a significantly larger home and can expand your existing system rather than installing entirely new, removal could save on expansion costs.

The Better Financial Approach

Instead of removing panels:

1. Sell your home with solar and capture the $9,000-$29,000 value increase

2. Install NEW solar at your new home with:

   • Current 2025 technology (more efficient panels than your existing system)

   • Fresh 25-30 year warranties (vs. remaining 15-20 years on your current panels)

   • 30% federal tax credit on the new installation

   • Optimal design for your new home's specific roof orientation and shading

Net financial outcome: Often comparable or better than removal/reinstallation, with superior equipment and warranties.

Your Action Plan

Solar panels help the vast majority of home sales, but success requires preparation and realistic expectations about potential complications.

If You're Considering Solar But Worried About Moving

Don't let this concern stop you. The average American stays in a home for 13 years, plenty of time to enjoy substantial savings and build equity. When you do eventually move, that solar system will likely help your home sell faster and for more money, provided you:

• Choose owned or financed systems over leases when possible (cleaner transfers)

• Keep all documentation organized from day one

• Maintain production monitoring access for future sale marketing

• Work with reputable installers who provide comprehensive warranty documentation

If You Currently Have Solar and Need to Move

Start preparing 60-90 days early:

1. Gather all documentation (permits, warranties, bills, monitoring data)

2. Understand your ownership situation:

3. Work with a solar-experienced realtor who understands how to market solar as an asset

4. Be prepared for appraisal challenges: Have NREL data and comparable solar home sales ready

5. Price strategically to capture the premium while remaining competitive

Get Professional Support

IntegrateSun helps homeowners plan for the full solar lifecycle, including eventual home sales. We provide:

• Clear ownership documentation from installation day one

• Comprehensive warranty information organized for easy transfer

• Production monitoring setup that showcases system value

• Guidance on maximizing resale value with proper maintenance

• Support with documentation if you need to sell

Whether you're installing new solar or preparing to sell a solar-equipped home, we're here to ensure the process works smoothly.

Schedule a Free Consultation to discuss solar installation with complete lifecycle planning, or Contact Us with questions about selling your solar home.

Solar is a valuable investment that delivers savings while you own your home—and typically pays dividends again when you sell. With proper preparation, you'll capture both benefits.

FAQs

What are the biggest challenges when selling a home with leased solar panels?

Leased solar panels present the most complications in home sales. The main challenges in 2025 include: transfer delays (solar company bankruptcies like Sunnova and SunPower have caused approval delays of 2-3+ months vs. typical 2-4 weeks), buyer drop-off (10-20% of buyers refuse to assume 15-20 year lease commitments even with lower payments than utility bills), qualification requirements (buyers must meet credit and income standards—typically 650+ credit score), and reduced negotiating power (sellers often must offer price concessions, prepaid lease months, or buyouts to attract buyers). Solutions include starting the transfer process 90 days early, getting buyout quotes as backup plans, screening buyer credit before going under contract, and working with realtors experienced in solar home sales who can properly market the savings benefits.

Can I pay off my solar loan from the home sale proceeds?

Yes, paying off your solar loan at closing is the most common approach for financed systems. Your closing attorney or title company coordinates the payoff with your solar lender, deducting the balance from your sale proceeds—just like paying off a home equity loan or second mortgage. The solar system then transfers to the buyer free and clear with no payments. Since solar systems typically add $9,000-$29,000 to sale price, paying off most loan balances still results in net gains from the solar investment. The potential challenge is being "underwater" (owing more than the system adds in value), which can happen if you financed at high interest rates and haven't owned the system long. Solutions include challenging lowball appraisals with proper documentation, pricing your home higher to absorb the payoff, or refinancing before selling if you have time.

What should I do if my appraiser undervalues my solar system?

Appraisal challenges are increasingly common as not all appraisers have solar valuation training. If your solar system is undervalued: immediately challenge the appraisal in writing with supporting documentation including your original installation invoice, NREL's $4 per watt methodology (showing a 6 kW system should add ~$24,000), comparable sales of solar homes in your area, and production monitoring data showing actual electricity generation and savings. Request that your lender use a solar-certified appraiser or one trained in Fannie Mae's solar valuation guidelines. Provide an organized documentation package to make the appraiser's job easier. Consider including a "solar addendum" with your home's listing materials that pre-emptively provides appraisers with valuation data. Work with your realtor to identify and include comparable solar home sales in your market. Most lowball appraisals can be successfully challenged with proper documentation—the key is acting quickly and providing clear evidence of the system's value.