Solar panels are everywhere in the Inland Empire — and for good reason. With 280+ days of sunshine per year and summer electricity bills that can exceed $400/month for larger homes, solar makes financial sense for many IE homeowners. But when it comes time to sell, solar panels add a layer of complexity that can either help or hurt your sale depending on one critical factor: do you own the panels or lease them?
Here's what you need to know about selling a solar-equipped home in the IE.
Owned Solar: Your Best Scenario
If you purchased your solar panels outright (or financed them with a loan that's been paid off), you're in the strongest position. Owned solar panels are a straightforward asset that comes with the home, just like a new roof or upgraded HVAC system.
The Value Question
Studies consistently show that owned solar panels increase home value. The Lawrence Berkeley National Laboratory found that buyers are willing to pay a premium of roughly $4 per watt of installed solar capacity. For a typical 7kW IE residential system, that's approximately $28,000 in added value.
However — and this matters — the premium depends on several factors: the age of the system, remaining warranty coverage, energy production data, and local market conditions. A 2-year-old system with 23 years of warranty remaining is worth significantly more than a 15-year-old system near the end of its expected life.
How to Market Owned Solar
When listing a home with owned solar, emphasize the financial benefit to buyers:
- Annual energy savings: Pull your past 12 months of electricity bills and calculate the savings. In the IE, a properly sized system can reduce annual electricity costs by $2,000–$4,000.
- System details: Include the system size (kW), manufacturer, installation date, and remaining warranty in your listing.
- Production data: If your system has monitoring (most modern systems do), share the actual production data. Real numbers are more compelling than estimates.
- No monthly payment: Make it clear the system is owned free and clear — no lease or PPA payments transfer to the buyer.
Leased Solar: The Complication
Leased solar panels are a different story — and this is where most selling complications arise. With a solar lease or Power Purchase Agreement (PPA), you don't own the panels. A third-party company owns the equipment on your roof, and you pay them a monthly fee for the electricity the panels produce.
When you sell, the lease doesn't just go away. You have three options, none of which is ideal:
Option 1: Transfer the Lease to the Buyer
The buyer assumes your lease agreement and takes over the monthly payments. This sounds simple, but it creates friction in the sale:
- The buyer must qualify with the solar company — they'll run a credit check and may deny the transfer
- Many buyers don't want an inherited lease with terms they didn't negotiate, especially if 15+ years remain
- Some lenders scrutinize solar leases and may have concerns about the UCC-1 filing (a lien the solar company places on your home)
- It adds complexity and time to closing — the solar company's approval process can take 2–4 weeks
Option 2: Buy Out the Lease
You pay the remaining balance on the lease to own the panels outright before selling. This removes the complication entirely and lets you sell the home with owned solar. The downside: buyout amounts can be steep — often $10,000–$25,000 depending on the remaining term and original agreement.
Run the math: if buying out the lease costs $15,000 but having owned solar adds $20,000–$28,000 in perceived value and removes friction from your sale, the buyout may be worth it.
Option 3: Have the Panels Removed
The solar company removes their equipment from your roof. This eliminates the lease issue but also eliminates the solar benefit — and you may be responsible for roof repair costs where the panels were mounted. Removal fees can range from $1,000–$5,000.
This option makes sense only if the lease is deeply unfavorable, the system is old and not producing well, or the lease is scaring away buyers and a buyout isn't economically viable.
Solar Loan: The Middle Ground
If you financed your solar panels with a loan (common through companies like Sunrun, Mosaic, or GoodLeap), you own the panels — but the loan balance must be addressed at sale. In most cases, the loan is paid off from your sale proceeds at closing, similar to your mortgage.
The key distinction: a solar loan is your debt, not a lease. The buyer gets the panels free and clear once the loan is paid. This is much simpler than a lease transfer and generally doesn't create friction with buyers.
Make sure to disclose the loan in your listing and clarify that it will be paid off at closing. Buyers should know they won't inherit any payments.
California Disclosure Requirements
California law requires specific disclosures related to solar panels:
- Ownership status: Whether the system is owned, leased, or financed — and the terms of any agreement
- UCC-1 filings: If a solar lease or PPA includes a UCC-1 filing (a lien), this must be disclosed
- System performance: Any known issues with production, inverter problems, or warranty claims
- Net metering status: Whether the home is grandfathered under NEM 2.0 or subject to NEM 3.0, which significantly affects the financial benefit of the solar system
Your listing agent should help you compile all solar-related documentation and ensure it's included in your disclosure package.
The NEM 2.0 vs. NEM 3.0 Factor
This is increasingly important for IE home sales. California's Net Energy Metering (NEM) 3.0 policy, which took effect in April 2023, dramatically reduced the credit rate that new solar customers receive for excess energy sent back to the grid.
Homes with solar systems installed before April 2023 are typically grandfathered under NEM 2.0 for 20 years from their interconnection date. This means they receive significantly higher credits for excess production — making the system more valuable.
If your home has NEM 2.0 grandfathered status, this is a major selling point. The financial benefit of NEM 2.0 versus NEM 3.0 can be worth $1,000–$2,000 per year in additional savings, and buyers increasingly understand this distinction. Make sure your listing highlights the NEM status and what it means for the buyer's energy costs.
IE-Specific Solar Considerations
A few factors specific to the Inland Empire solar market:
Sun exposure is exceptional. The IE gets more direct sunlight than coastal areas, which means solar systems here produce more energy per installed kilowatt. This is a genuine selling point for buyers comparing IE homes to properties closer to the coast.
Summer cooling costs are significant. IE homes routinely see summer electricity bills of $300–$500 without solar. A system that eliminates or dramatically reduces these bills is a tangible financial benefit that resonates with every buyer.
Many IE homes built since 2020 have solar by code. California's Title 24 mandate requires solar on most new residential construction. If your home was built with solar included, the system is typically owned and included in the purchase price — simplifying the selling process.
The Bottom Line
Owned solar panels are a clear asset when selling your IE home — they add value, reduce operating costs, and appeal to environmentally conscious and financially savvy buyers. Leased solar requires more planning but can be managed with the right strategy.
The most important thing: understand your solar situation early in the selling process. Know whether you own, lease, or finance. Know the lease buyout amount if applicable. Know your NEM status. And make sure every detail is properly disclosed. With the right preparation, solar panels help your sale rather than complicate it.
JP Dauber is a licensed California broker (DRE #01499918) experienced in selling solar-equipped homes across the Inland Empire. SoldByJP provides full-service home selling at 1% commission. Get your free home valuation →