Should you buy a house with leased solar panels? You can, but only after you've read the lease. In a standard Arizona resale, leased items don't convey with the house. You'd take over the seller's agreement, usually after the solar company signs off. Fannie Mae says leased panels can't add to the appraised value, and the monthly lease payment usually counts in your debt-to-income ratio (DTI).
Owned panels are different. If the seller owns the system outright, the Arizona REALTORS contract includes it with the home like any other fixture. The real question in any 85250 home with solar is who owns the panels and what's still owed on them. Get that answer in writing early in escrow.
Data note: Contract terms come from the Arizona REALTORS Residential Resale Real Estate Purchase Contract sample (updated November 2025). Lending rules come from Fannie Mae Selling Guide B2-3-04. Consumer protections come from A.R.S. 44-1763, and tax credit status from the IRS. General information only; confirm your current form and your lender's overlays.
Owned, Financed, Leased or PPA: Know Which You're Buying
Fannie Mae's Selling Guide lists the four common setups:
- Owned: paid in cash, included in a prior purchase price, or financed and paid off. Standard appraisal, insurance and title rules apply.
- Financed: the panels secure a separate loan. That debt counts in your DTI. Whether the panels add value depends on whether they can be repossessed on default.
- Leased: a third party owns the equipment and you pay a monthly amount.
- Power purchase agreement (PPA): you buy the electricity the panels produce, usually at a set rate per kilowatt-hour.
The label on a seller's listing isn't enough. Ask for the actual agreement, the most recent statement and the company's transfer packet.
What the Arizona Contract Says About Solar
For Buyers
- Owned affixed alternate power systems such as solar are included in the sale.
- "Leased items shall NOT be included in this sale."
- The seller must give notice of all leased items within three days after acceptance.
- You can disapprove leased items within the inspection period (10 days by default) or five days after the seller's notice, whichever is later.
- A separate Solar Addendum is available for the details.
For Sellers
- Disclose solar ownership on your Seller's Property Disclosure Statement (SPDS); see our Arizona seller disclosure guide.
- Start the solar company's transfer process as soon as you accept an offer. The buyer's credit approval with the solar company runs alongside the mortgage.
- If the panels are financed or the lease is hard to transfer, discuss a payoff or buyout with your agent before you list.
How Lenders Treat Leased Panels
For leased panels or PPAs, Fannie Mae's Selling Guide requires the lender to:
- Obtain and review the lease or PPA
- Count the monthly lease payment in DTI, unless the lease delivers a set amount of energy at a fixed payment with a production guarantee
- Exclude PPA payments only when based solely on energy produced
- Leave the panels out of the appraised value and out of LTV/CLTV
- Accept a precautionary UCC filing on the equipment alone as a minor title item
- Confirm the home keeps access to an alternate source of power
- Confirm the agreement makes the panel owner responsible for damage from installation, malfunction or removal
Homes with panels financed through a PACE loan aren't eligible for Fannie Mae financing unless that loan is paid in full at or before closing.
Arizona Consumer Protections Worth Knowing
A.R.S. 44-1763 sets rules for Arizona solar sale and lease agreements. The agreement must:
- Give the original buyer or lessee a three-business-day right to rescind before installation
- State the total cost over the life of the agreement, plus any interest and fees, in bold type
- Disclose whether warranty and maintenance obligations can be transferred to a third party
- Include a separately acknowledged disclosure of any restrictions on transferring the home, including whether a third party must review or approve it, with that party's name, address and phone number
That last item is the one buyers and sellers feel at closing. Know the approval steps before you're in contract.
Questions to Ask Before You Remove Your Contingency
- Is the system owned, financed, leased or a PPA?
- What's the monthly payment, the escalator and the remaining term?
- Is there a production guarantee, and has the system met it?
- What does the company require for transfer, and how long does it take?
- Who handles roof penetrations if the roof needs work? See how long a roof lasts in Arizona.
- Is there a UCC filing on title, and is it precautionary or a fixture filing?
The Tax Credit Changed
The 30% Residential Clean Energy Credit covered qualified property installed from 2022 through Dec. 31, 2025. The IRS says it's not available for property placed in service after that date. Don't count on a federal credit for panels added now, and don't price a home on the idea that one transfers to you.
“Solar can be a real plus on a Chaparral Park home, but the paperwork decides whether it's an asset or a headache. When I'm representing a seller, I gather the agreement and the transfer packet before we list. When I'm with a buyer, we read the escalator and the remaining term before the inspection period ends, not after.”
— Elizabeth Vijan, Tackett Team, eXp Realty
FAQ: Leased Solar Panels and Your Home Sale
Should I buy a house with leased solar panels?
You can. Read the payment, escalator, term and transfer rules during your inspection period, and know your lender will likely count the payment in DTI.
Do leased solar panels count against my debt-to-income ratio?
Often, yes, per Fannie Mae. The exception is a fixed-energy lease with a production guarantee or a PPA paid solely on energy produced.
Do owned solar panels transfer with the house in Arizona?
Generally, yes. The resale contract includes owned, affixed solar systems.
Can I still get the 30% federal solar tax credit?
Not for new systems. The credit ended for property placed in service after Dec. 31, 2025.
Buying or Selling an 85250 Home With Solar?
I'll help you sort out the agreement, the transfer timeline and how solar fits your pricing or offer before the deadlines hit.
Elizabeth Vijan | Tackett Team, eXp Realty
Chaparral Park Resident & 85250 Real Estate Expert
Talk Through My Solar Home · Call or text 602-885-7752
Sources: Fannie Mae Selling Guide B2-3-04: Special property eligibility · A.R.S. 44-1763: Solar agreement disclosures · IRS: Residential Clean Energy Credit · Arizona REALTORS sample resale contract, Nov. 2025 (PDF)
Disclaimer: General information, not legal, tax or lending advice. Solar agreements and lender requirements vary; review your documents with your lender and an attorney. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
