Last updated: October 21, 2026
Short answer: Yes, you can sell an Avondale home with solar. How it goes depends on whether you own the panels or lease or finance them. Owned, paid-off systems can add value. With a lease or loan, the buyer usually must be approved to take over the payments, or you pay the system off before closing. Get a free home value report.
Key takeaways
- Owned, paid-off solar can add appraised value. Leased or PPA panels can't be counted in the appraised value under Fannie Mae's guidelines.
- With a lease or PPA, the buyer usually takes over the agreement once the solar company approves them, or you buy it out before closing.
- Gather your solar agreement, payoff quote, transfer packet, and 12 months of electric bills before you list.
- A grandfathered APS net metering plan can transfer to the buyer if they keep the plan, for up to 20 years from when the system was first connected to the grid.
Hi, I'm Rosie Armenta. My daughter Mariela and I see solar on a lot of West Valley rooftops, and it's one of the most misunderstood parts of selling a home here. You'll see solar on a lot of Avondale listings, so if you have panels, you've got company. Here's how to sell with them, not in spite of them.
Do solar panels increase home value in Arizona?
They can, but mostly when you own them. Sun Valley Solar Solutions, an Arizona solar company, says in its real estate guide that panels have to be owned free and clear to add appraisal value. Lender appraisal guidelines treat leased panels as the solar company's property, so leased systems don't add appraised value (Fannie Mae Selling Guide, Properties with Solar Panels).
For owned systems, their guide suggests a starting rule of thumb of roughly $1,000 to $1,500 per kW from an appraisal standpoint. It's a sliding scale, with bigger systems getting a bit less per kW, so an 8 kW system might add about $8,000 to $10,000. Newer systems usually get more credit, and every appraiser is different. To help your appraisal:
- Give the appraiser your system size, age, and paid-in-full invoice
- Share 12 months of utility bills to show the real savings
- Include roof paperwork if your roof is newer
Owned vs. leased vs. financed solar: side by side
| Owned (paid off) | Leased or PPA | Financed with a solar loan | |
|---|---|---|---|
| Who owns the panels | You | The solar company | You, but the panels secure the loan until it's paid off |
| Counts toward appraised value? | Yes, under standard appraisal rules | No | Only if the loan documents say the panels can't be repossessed if the loan defaults |
| What happens at the sale | The panels go with the house | The buyer applies to take over the agreement, or you buy it out | Paid off from your proceeds at closing, or assumed if the loan allows it |
| Effect on the buyer's loan | No solar payment | The payment usually counts in the buyer's debt-to-income ratio (some PPAs paid only on energy produced may be excluded) | If assumed, the payment counts in the buyer's debt-to-income ratio |
| Title and UCC filing | Make sure any old filing was released when you paid it off | Often a UCC filing the title company has to handle | Often a UCC fixture filing that must be released or transferred |
Based on the Fannie Mae Selling Guide (B2-3-04, Properties with Solar Panels) and Sun Valley Solar Solutions' real estate guide. FHA, VA, and other loan types have their own rules, so the buyer's lender has the final word.
Can I sell my house if my solar panels are leased?
Yes. With a lease or PPA, the buyer usually takes over the agreement if the solar company approves them. Not every solar loan can be assumed, and one that can't is paid off from your sale proceeds at closing, so check your loan terms first. Here's how a transfer usually works:
- You call your solar company before listing and ask for their transfer process and documents.
- The buyer applies with the solar company, which usually runs a credit check. Sun Valley's guide says lessors often look for a credit score of about 650, but each company sets its own rules.
- The buyer's lender counts the solar payment in their debt-to-income ratio. That's why I make sure buyers are vetted early, so you don't end up back on the market a few weeks later.
- Title clears the UCC filing. A solar lease or loan is usually recorded as a UCC fixture filing on your home. It's a public notice of the solar company's interest in the equipment. It isn't a mortgage on your home, but the title company will require it to be released or transferred before closing. The solar company sends a termination to the title company before closing, then files a new one under the buyer's name.
Your other option: pay off or buy out the lease or loan before closing. Then the panels are fully owned when the sale closes, which makes the sale simpler and, per Sun Valley's guide, lets the appraiser count their value.
What changed in Arizona's solar addendum?
The Arizona Association of REALTORS® overhauled its Solar Addendum in November 2025, according to a Central Arizona Association of REALTORS® recap. Key points for sellers:
- Hand over your solar documents right after you accept an offer: the lease or loan agreement, payment schedule, and warranty info.
- Agree up front on who pays any solar transfer or assumption fee. No more surprises at the closing table.
- Buyers are reminded to re-check the final assumption terms (payment, years remaining) shortly before closing, so it's smart to make sure the terms you disclose are exactly right.
Will my net metering plan transfer to the buyer?
Possibly, and if so, that's a selling point! Net metering gave solar owners a dollar-for-dollar credit for extra power sent to the grid. Sun Valley's guide says APS ended net metering on August 31, 2017 and SRP ended it on December 9, 2014. Always confirm with the utility.
If you're with APS, its Renewable Energy Riders page says a customer can stay on the legacy net metering rider for up to 20 years from the date the solar system was interconnected to the APS grid, and APS's grandfathering terms allow it to transfer to a new customer who buys the home. If you're with SRP, review its solar price plans and call SRP to confirm what plan your home is on and what the buyer needs to do.
What should I gather before listing a solar home?
- Your solar agreement (lease, PPA, or loan) and its current payoff or buyout quote
- The transfer packet and contact for your solar company's transfer team
- 12 months of electric bills (before-and-after bills are even better)
- System size, install date, warranty, and paid-in-full invoice if you own it
- Your utility rate plan name, and whether you're grandfathered (your utility can confirm it)
Bring all of it to our listing appointment, and Mariela and I will turn it into marketing that shows buyers the real monthly savings. If you'll need to pay off a solar loan or lease, I'll include that in your seller net sheet so you see your real bottom line. Here's more on how much it costs to sell a house in Avondale.
Ready to see what your solar home is worth?
- Get your value: request a free home value report.
- Check local trends: see the Avondale home values and market report and read what your Avondale home is worth in 2026.
- Talk it through: call or text me at 623-295-5770. Tell me whether your panels are owned or leased, and I'll give you a game plan.
Shopping for your next home too? Browse the Avondale home search, and ask about solar on every listing you love.
Frequently Asked Questions
Do solar panels increase home value in Arizona?
Owned, paid-off solar can add value. An Arizona solar company's real estate guide suggests roughly $1,000 to $1,500 per kW as a starting point, so an 8 kW system might add about $8,000 to $10,000. Leased systems don't add appraised value, because lender guidelines treat them as the solar company's property.
Can I sell my house with leased solar panels in Arizona?
Yes. The buyer usually applies to take over the lease, subject to the solar company's credit approval, or the seller pays off or buys out the lease before closing.
Does the buyer have to take over my solar lease?
If the lease stays with the house, the buyer must be approved to assume it. If the buyer won't or can't, your options are usually to buy out the lease, pay off the solar loan, or negotiate with the solar company.
What is a UCC filing on solar panels?
It's a UCC fixture filing the solar lender or lessor records against the home to show its interest in the panels. It isn't a mortgage on your home, but the title company will require it to be released or transferred before closing, and the solar company then files a new one under the buyer's name.
Will my net metering plan transfer to the buyer?
It may. APS ended net metering on August 31, 2017, and SRP ended it on December 9, 2014, so systems installed before those dates may be grandfathered. With APS, the legacy plan lasts up to 20 years from the date the system was first connected and can transfer to a buyer who stays on that plan. With SRP, call SRP to confirm.
Do I have to pay off my solar loan before selling my house?
Not always. Not every solar loan can be assumed, and one that can't is paid off from your sale proceeds at closing. Check your loan terms early so the payoff shows up on your seller net sheet.
Does a solar lease affect the buyer's mortgage approval?
It can. Under Fannie Mae's guidelines, the monthly lease payment usually counts in the buyer's debt-to-income ratio, and leased panels can't be included in the appraised value. Some power purchase agreements paid only on the energy produced may be left out of the debt-to-income ratio.
How do I find my solar system's interconnection date?
Check with your utility (APS or SRP) or your installer's permission-to-operate letter. For APS legacy customers, the 20-year clock runs from that date.
About the authors
Rosie Armenta and her daughter, Mariela Armenta, are a mother-daughter REALTOR® team with West USA Realty. North Avondale (85392) is their home base, and they help buyers and sellers across the West Valley in English and Spanish. Call or text 623-295-5770, or get a free home value report.
Rosie Armenta, REALTOR® | West USA Realty | Equal Housing Opportunity
Information was checked on October 21, 2026, from Sun Valley Solar Solutions' "Buying and Selling a Solar Home" guide, the Fannie Mae Selling Guide (Properties with Solar Panels), APS's Renewable Energy Riders page and Legacy EPR-6 rate rider, SRP's solar price plans page, and the Central Arizona Association of REALTORS® recap of the November 2025 AAR form updates. Solar contracts vary. Read yours and confirm details with your solar company and utility. This article is general information, not legal advice.