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Selling a House With a Solar Panel Loan: Solutions for Homeowners

In recent years, solar panels have become a popular upgrade for Texas homeowners looking to save on energy costs and boost their home’s value. But when it comes time to sell, many owners discover that solar panel loans and leases can complicate the process—especially in a market where buyers expect a seamless transaction. If you’re thinking about selling your home and still owe money on your solar panels, you’re not alone. Here’s what you need to know, and how our team helps sellers navigate these tricky situations to maximize your sale price and minimize headaches.


The Challenges of Selling a Home With Solar Panels

  • Solar Panel Loans Attach to the Home, Not Just the Owner:
    Many solar panel loans are secured by a UCC-1 lien, which attaches to the property and must be addressed before or during a sale. This can scare off buyers, delay closings, or reduce your home’s marketability.

  • Buyer Qualification Issues:
    Not all buyers can—or want to—assume the remaining loan payments, and lenders may hesitate to finance homes with additional liens.

  • Confusion Over Ownership vs. Leasing:
    Whether you own the panels outright, have a loan, or lease them, each scenario affects the transaction differently.


Solutions for Sellers: Navigating Solar Panel Loans

1. Pay Off the Solar Loan at Closing

The most straightforward approach is to use proceeds from your sale to pay off the balance of the solar panel loan at closing. This removes any lien or encumbrance, making the transaction simple for the buyer.

  • Pro Tip:
    Request a payoff statement from your solar loan provider before listing. This gives you clarity on your net proceeds and helps prevent surprises during negotiations.

2. Transfer the Loan to the Buyer

Some solar loan companies allow the loan to be transferred to the new homeowner. If your buyer is interested in keeping the panels and assuming the loan, this can be an option.

  • Important:
    Not all buyers will qualify or be interested in taking on a solar loan, so this can limit your pool of potential buyers.

3. Buyout the Lease (If Leased Panels)

If you have a solar lease (not a loan), ask your solar company about a buyout option. Paying off the lease upfront can clear the way for a smoother closing.

4. Sell to an Investor or Off-Market Buyer

Investors—like our team at The McDonald Team—specialize in creative solutions. We often purchase homes as-is, including those with solar panel loans, and can help structure the deal so that you don’t have to come out of pocket to resolve the lien.


How We Help: The McDonald Team Approach

Expert Guidance:
We help you review your solar panel agreement, determine your payoff, and lay out all your options—whether you’re listing on the MLS or considering an off-market cash offer.

Network of Lenders & Buyers:
We connect you with buyers and lenders familiar with solar loans, making it easier to negotiate a sale and avoid last-minute surprises.

Creative Solutions:
For homeowners facing a shortfall at closing or unable to pay off the loan, we can structure deals such as “subject-to” sales, wraps, or delayed payoff agreements to get you out of the house without extra stress.

Seamless Transactions:
We coordinate with title companies, solar lenders, and all parties to ensure every lien is handled properly and the transaction closes on time.

BONUS:

Afraid none of these other options will work? We have preferred attorneys who will give you a free consultation and may potentially have a solution for you to get rid of those pesky solar panels. 

***This is not legal advice nor a guarantee

 


Selling On-Market? Here’s What You Need To Know

  • Disclose, Disclose, Disclose:
    Always disclose any solar loan, lien, or lease to your real estate agent and prospective buyers early in the process.

  • Update the MLS Listing:
    Make sure your listing specifies the status of the solar panels—owned, leased, or financed.

  • Work With an Agent Who Understands Solar:
    Many agents (and their buyers) are unfamiliar with the process. Our team has handled dozens of solar panel sales and can walk you through every step.


Thinking of Selling a Home With Solar Panels?

Don’t let a solar loan stop your move or leave you stuck. Whether you’re selling on the open market or need a fast, off-market solution, The McDonald Team has the experience, partners, and creative strategies to help you close with confidence.
Contact Cody McDonald today for a free consultation on your home’s solar panel situation and all your options.