If you need to move to a different house while having a solar lease, here’s what typically happens and the options you have:
Key Considerations When Moving with a Solar Lease
1. Contact Your Solar Provider
If you lease your solar panels, the first step is to contact your solar provider to inform them of your move and discuss your options.
2. Options for Your Solar Lease
- Transfer the Lease to the New Buyer:
If you are selling your current home, you can transfer the solar lease to the buyer of your home. The buyer must qualify based on credit requirements (usually a credit score around 680 or higher). This transfer requires coordination between you, the buyer, your real estate agents, the solar company, and the buyer’s mortgage lender. The lease transfer process can extend the closing period and potentially narrow your buyer pool to only those willing and qualified to take over the lease. - Buy Out the Lease:
Another option is to buy out the remaining lease from the solar company. This ends your contractual obligation but usually requires a significant upfront payment. Buying out the lease may increase your costs without tax credits, as those are often claimed by the solar company leasing the panels. - Leave the Panels with the Home:
You can leave the leased solar panels on the house for the new owners to take over, which can make the home more attractive and potentially sell faster. However, the buyer must be willing to take on the lease. - Removal and Reinstallation (Less Common for Leased Systems):
Since you don’t own leased panels, moving them to a new house is often not feasible or permitted. The physical removal and reinstallation are costly and complicated, and for leased systems, the panels generally remain with the original property unless the lease provider allows relocation (which is rare).
3. Legal and Financial Implications
- You must coordinate the lease transfer process before closing the sale to avoid ongoing payments harming your credit.
- There may be a lease transfer fee.
- The buyer’s lender will want assurance that warranties and maintenance agreements are transferable and will not impact the buyer’s mortgage payments.
4. Considerations for Your New Home
- If you buy out the lease or otherwise conclude it, you can install a new solar system at your new home.
- Before moving a solar system you own (not leased), check if the new roof and location are compatible for solar panel installation.
- For leased systems, the panels generally stay with the original home unless otherwise arranged with the solar provider.
Summary Table of Options Moving with a Solar Lease
| Option | Description | Pros | Cons |
|---|---|---|---|
| Transfer Lease to Buyer | Buyer takes over lease payments and agreement | No upfront cost, lease payments end for you | Requires buyer qualification, complicates sale, may deter some buyers |
| Buy Out Lease | Pay to end lease contract early | Freedom from lease, can choose new solar at new home | Upfront cost, no tax credits, may be expensive |
| Leave Panels for Buyer | Panels remain on house; buyer takes over lease | Home sells faster, attractive to buyers needing solar | Limited buyer pool, requires buyer to qualify for lease |
| Remove and Move Panels | Generally not feasible for leased panels | You keep the solar system | High cost, complicated, rarely allowed for leased systems |
Final Advice
- Immediately notify your solar leasing company upon planning a move.
- Work closely with your real estate agent and solar provider to coordinate lease transfer or buyout.
- Review your lease agreement carefully to understand transfer fees, obligations, and credit requirements.
- Decide whether to transfer the lease to buyers or buy it out based on financial and timing considerations.
- If buying out or ending the lease, plan for installing a new solar system at your new home.
By planning carefully and communicating with your solar provider, you can manage your solar lease responsibly when moving and ensure a smooth transition without incurring unexpected costs or credit impacts.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-happens-if-i-need-to-move-to-a-different-house-with-a-solar-lease/
