Buying a House With Solar? 10 Things to Check Before Closing

Clemens Electric Roof Solar

Buying a home with an existing solar system can be a great benefit. A properly operating solar array can reduce electricity costs for years and may already represent a significant investment in the property. However, solar also adds another layer of due diligence that buyers should consider before closing.

One of the biggest mistakes a buyer can make is assuming that because solar panels are on the roof, the system is owned, operating properly, and free of financial obligations. We've encountered existing solar systems with failed equipment, inaccessible monitoring, aging roofs, discontinued installers, and equipment that hasn't been producing properly for some time.

A traditional home inspection may identify obvious electrical or roofing concerns, but it typically isn't a comprehensive solar system inspection. If you're considering purchasing a home with solar, here are 10 things you should investigate before closing.

1. Find Out Who Owns the Solar System

This should be one of your first questions.

Not every solar system is owned outright by the homeowner. The system could be:

This distinction can be extremely important during a real estate transaction.

If the system is leased or subject to a PPA, there may be an agreement that needs to be transferred to the new homeowner. If it's financed, the seller and buyer should understand how that obligation will be handled at closing.

Don't rely solely on a listing that describes the house as having "owned solar." Ask for documentation and have your attorney or other appropriate closing professional verify the contractual and financial status of the system.

2. Ask for the Original Solar Documentation

Ideally, the seller should be able to provide documentation from when the solar system was installed.

Useful documents may include:

Don't be surprised if an older system is missing some documentation. Solar companies have changed ownership, merged, or gone out of business over the years.

Missing paperwork doesn't necessarily mean there is a problem, but it is another reason to investigate the system before purchasing the property.

3. Make Sure the System Is Actually Producing Power

Solar panels sitting on a roof don't necessarily mean the entire solar system is working.

A system can continue producing electricity even when individual components have failed. Depending on the equipment, one or more panels, microinverters, optimizers, or strings could be offline without it being obvious to the homeowner.

In other cases, an inverter could be faulty and the entire system may have stopped producing.

Ask to see current production information rather than simply being told, "The solar works."

Ideally, production should be reviewed through the manufacturer's monitoring platform and compared against the system size, configuration, season, and available historical information.

4. Get Access to the Solar Monitoring

Modern solar systems commonly have an online monitoring platform that allows the homeowner to see system production.

Depending on the equipment, this could include monitoring from manufacturers such as Enphase, SolarEdge, SMA, Tesla, or another manufacturer.

Before or during the purchase process, determine:

Monitoring can tell us a lot about the condition of a solar system.

For example, a system may appear to be operating normally from the ground while monitoring shows that several devices haven't produced electricity in months.

You also want to make sure you can obtain monitoring access after purchasing the property. Otherwise, you may own a solar system without an easy way to know whether it's performing correctly.

5. Check for Failed or Underperforming Equipment

Solar equipment is generally designed for a long service life, but components can and do fail.

Depending on the system design, potential issues can include failed:

Older SolarEdge and Enphase systems, for example, may have individual electronic components that have already been operating outdoors for many years.

This doesn't automatically make an older system a bad investment. However, you should know what you're buying.

A qualified solar contractor can review the system and identify obvious faults or equipment that isn't communicating or producing as expected.

6. Find Out Who Installed the System

Ask who originally installed the solar array and whether that company is still operating.

This is becoming increasingly important as the solar industry matures. Many homeowners have systems installed by companies that have since closed, changed ownership, or stopped providing service in their area.

If the original installer is gone, it doesn't necessarily mean the solar system is worthless or that its equipment warranties have disappeared.

Manufacturer warranties may still apply.

The challenge is often finding a qualified contractor willing and able to troubleshoot equipment they didn't originally install, process applicable warranty claims, and complete repairs.

Before buying the house, it's worthwhile to know whether you'll have someone to call if the system develops a problem.

7. Understand the Remaining Warranties

"25-year solar warranty" can be misleading because a solar installation typically has several different warranties.

There may be separate warranties covering:

Solar panels: Usually related to product defects and long-term power output.

Inverters or microinverters: These have their own manufacturer warranty terms.

Optimizers: If used, they may have a separate warranty.

Battery storage: Batteries generally have their own warranty requirements, limitations, and performance provisions.

Workmanship: The original installer may have provided a workmanship warranty covering the installation.

Roof penetrations: Some contractors provide specific coverage relating to roof attachments or penetrations.

Ask for the actual warranty documents when possible.

More importantly, determine whether those warranties transfer to a subsequent homeowner and what labor, shipping, diagnostic, or replacement costs may not be covered.

A manufacturer's replacement part being covered under warranty doesn't always mean every cost associated with diagnosing and replacing it will be covered.

8. Look Closely at the Roof

The condition and remaining life of the roof can be just as important as the condition of the solar equipment.

Ask:

How old is the roof?

Was the roof replaced before the solar system was installed?

Are there signs of leaks or water intrusion?

How much useful life does the roof likely have remaining?

If you're purchasing a home with a 15-year-old roof and relatively new solar panels, you may eventually need to remove the solar array to replace the roof and then reinstall it.

That's an additional expense that should be considered when evaluating the property.

A solar inspection isn't a replacement for a professional roof inspection, either. When there are concerns about roof condition, an appropriate roofing professional should evaluate it.

9. Review Electric Bills and Historical Solar Production

Sellers may tell you that their electricity bills are "$20 a month" or that the solar system "covers the whole house."

That's useful information, but ask to see the actual records.

If available, review approximately 12 months of:

This gives you a much better picture of how the system has historically performed.

Remember that your electricity consumption may also be very different from the previous owner's.

A retired couple and a family of five can live in the exact same house and have dramatically different electricity usage. Adding an electric vehicle, hot tub, heat pump, pool, workshop, or other large electrical load can also significantly change consumption.

The previous owner's electric bill shouldn't be viewed as a guarantee of what your future bill will be.

10. Consider Having the Solar System Professionally Inspected

For a significant investment like a home purchase, having someone knowledgeable about solar look at the system can provide valuable information before closing.

Depending on the system and available access, a solar inspection can include reviewing:

No inspection can predict every future equipment failure, and some portions of a solar installation may not be accessible without removing panels or other equipment. However, an inspection can identify many existing problems before they become the new homeowner's responsibility.

Don't Assume the Solar System Is Fine Just Because It's Producing

A solar system should be treated as another major mechanical and electrical system associated with the property.

You probably wouldn't purchase a home without considering the age and condition of the furnace, air conditioning system, electrical service, septic system, or roof. An existing solar array deserves similar consideration.

This becomes particularly important with older systems.

A 10-year-old solar array may still have many years of productive life remaining, but the buyer should understand the equipment they're acquiring, its current operating condition, its warranties, and who can service it going forward.

Finding a problem before closing also gives the buyer and seller an opportunity to determine how it should be addressed as part of the transaction rather than discovering it after the keys have changed hands.

Buying a Home With Solar in Upstate New York?

Clemens Electric provides solar troubleshooting, service, and system inspections throughout New York's Capital Region and surrounding communities.

As a union electrical contractor with extensive experience in solar and energy storage, we can evaluate existing solar installations including systems originally installed by other contractors.

We regularly work with existing solar equipment and can help identify production issues, failed equipment, monitoring problems, electrical concerns, and potential repair needs. Our work with existing solar systems goes beyond troubleshooting and repairs. We can also help homeowners expand an existing solar array, add battery backup, upgrade or modernize older solar equipment, and remove and reinstall solar panels when a roof needs to be replaced. Whether your system was installed by us or another contractor, our goal is to provide a long term service option as your home and energy needs change.

If you're purchasing a home with an existing solar array, having the system evaluated before closing can help you better understand exactly what you're buying.

Contact Clemens Electric to schedule a solar system inspection or service appointment.