What Happens to Solar Panels When You Sell a House During Divorce?

Solar becomes surprisingly confusing when the spouse who handled the solar contract is not the spouse trying to sell the house.

One person says:

“The panels are paid off.”

The other says:

“No, we still pay $180 a month.”

Nobody can find the contract.

Do not wait until the buyer is already under contract to solve that mystery.

Owned, financed or leased: the exact contract matters

Solar systems can have different ownership and financing arrangements.

• A system might be owned outright.
• It might be financed.
• It might be leased or subject to another agreement.

The exact contract matters.

Before listing, find the provider and the paperwork

Before listing, find the solar provider and paperwork.

• Determine who signed the agreement.
• Determine whether there is a balance.
• Determine what the provider says about a property sale and any transfer or payoff requirements.

Do not simply assume:

“The buyer takes over the solar.”

That may or may not be how the particular arrangement works.

Solar affects the economics of the sale

Solar can also affect the economics of the divorce sale.

If a payoff is required or negotiated as part of the transaction, that can affect estimated seller proceeds.

If the buyer needs to assume or qualify for an obligation, that may affect the buyer's decision and timing.

The sooner everyone understands the agreement, the easier it is to plan around it.

Don't guess what solar “adds”

Lisa also does not want sellers making unsupported claims about how much solar “adds” to the value of the house.

The market response depends on the property, system, agreement and buyer.

Solar may be attractive.

The financing attached to it may be viewed differently.

Those are separate questions.

Lisa can help make sure the solar issue becomes part of the listing strategy early instead of a closing-week surprise.