I'll be honest. Solar panels can be one of the biggest headaches in a home sale, especially leased ones. There's a ton of paperwork, contracts, and fine print that go into solar systems, and all of it can cause issues when you sell. If your solar is owned outright, amazing. We just sell it with the house. If it's leased or financed, things get a lot more complicated. And here's the part most sellers don't want to hear. In my experience, solar isn't really adding anything to the price anymore. Buyers aren't looking for it the way they were a few years ago. Most of them just tolerate it. Here's how each type of solar plays out when you sell a Murray home, and what you can do to keep it from slowing down your closing.
Owned, Financed, or Leased Makes All the Difference
The first thing we need to know when you list is exactly what kind of solar you have. A lot of sellers aren't sure, especially if they bought the home with panels already on it. There are three main types.
Owned outright means you paid cash or the loan is fully paid off. The panels are yours, just like your furnace or your roof. This is the easiest situation by far.
Financed means you own the system but you're still making payments on a solar loan. That loan often has a lien attached, and it usually has to be paid off at closing, just like your mortgage.
Leased, or a power purchase agreement, means a solar company owns the panels and you pay them a monthly fee or a rate for the power. You don't own the system at all. This is the one that causes the most issues.
Pull out your solar contract, find out which one you have, and get the contact information for the company. That one step saves a lot of time once we're under contract.
Why Leased Solar Causes Problems
With a leased system, there are really two paths when you sell. The buyer can take over the lease, or the seller can pay it off. Both have challenges.
If the buyer takes over the lease, the solar company usually has to approve them, which means another credit check and another set of documents in the middle of the transaction. Some buyers just don't want to inherit a 20 or 25 year contract with payments that may go up every year. Their lender also has to account for the lease payment in their debt to income ratio, which can affect how much house they qualify for.
Leased systems and solar loans also often come with a filing on the property's title records, sometimes called a UCC filing, that shows the solar company's interest in the equipment. Title companies and lenders need that handled before closing, and getting the solar company to respond quickly isn't always easy.
That's why, when the solar is leased, I usually want the seller to pay it off at closing if the numbers make sense. It removes a whole layer of complexity, makes the home more appealing to buyers, and keeps the deal from stalling while everyone waits on a solar company. We can request a buyout quote from the company before listing so you know exactly what that costs.
Does Solar Add Value to a Murray Home?
I don't think solar is adding much, if anything, to the sale price right now. Buyers aren't really looking for solar anymore. It's kind of an older idea at this point. When I show a home with panels, most buyers don't get excited about them. They ask whether they're owned or leased, they ask what the payments are, and then they move on. They tolerate it.
Part of that is how buyers think about value. A buyer is paying for the house, the location, and the condition. Panels that are 8 or 10 years old, with a lease attached and a roof underneath that may need replacing in a few years, don't feel like a bonus. Appraisers also have a hard time valuing solar, especially leased systems, which the homeowner doesn't actually own.
The federal residential solar tax credit also ended for systems placed in service after 2025, so the incentive story around new solar has changed too. That's not really a factor for an existing system, but it's part of why solar has less buzz with buyers than it did a few years ago.
Owned solar is a lot better than leased solar. An owned, paid off system that's producing well and lowering the power bill can be a real plus for some buyers. It's just usually a modest one, not something that adds tens of thousands to the price.
Murray Has Its Own Power Company
Here's a local wrinkle. Murray is one of the few cities in the Salt Lake Valley with its own electric utility, Murray City Power, instead of Rocky Mountain Power. That means the rules for how your solar connects to the grid and how you're credited for extra power come from Murray, not from Rocky Mountain Power.
If you're selling a Murray home with solar, pull your recent power bills so buyers can see what the system is actually saving. Find out what the city's current terms are for solar customers, since buyers may ask. Real numbers from your actual bills are a lot more convincing than a sales pitch from the solar company that installed it.
The Paperwork Buyers and Lenders Need
Whatever kind of system you have, get the paperwork together before you list. That includes the original contract or purchase agreement, proof of ownership or the lease or loan terms, the current payoff or buyout amount if it's leased or financed, warranty information for the panels and inverter, and any monitoring data or power bills showing how the system performs. If the panels were installed with a roof warranty or roof penetration warranty, find that too.
With all of that ready, we can answer buyer questions up front, disclose the system clearly, and get the title company and lender what they need early. That's the difference between solar being a small detail and solar being the reason a closing gets pushed back.
Frequently Asked Questions
Can you sell a house with leased solar panels?
Yes, but it takes more steps. There are usually two options. The buyer can take over the lease, which typically requires approval from the solar company, a credit check, and transfer paperwork, and the lease payment may affect the buyer's debt to income ratio. Or the seller can pay off or buy out the lease at closing, which removes the lease from the deal. Many sellers choose the buyout because it makes the home simpler to sell and avoids delays. Leased systems also often have a filing in the property records that the title company needs resolved before closing. Contact your solar company early to get transfer requirements and a payoff quote.
Do solar panels increase home value in Utah?
Owned solar panels can add some value, but usually less than sellers expect. Many buyers today see panels as a neutral feature, especially if the system is older, the roof underneath will need replacing soon, or the panels are leased. Leased systems generally don't add value because the homeowner doesn't own them, and they can actually make a home harder to sell. An owned, paid off system with strong production and lower power bills is the best case, and it can be a real plus for some buyers. If you're selling, use your actual power bills and system data to show buyers the savings rather than relying on estimates.
What paperwork do I need to sell a house with solar panels?
Gather your original solar contract or purchase agreement, proof of whether the system is owned, financed, or leased, and the current loan payoff or lease buyout amount if there is one. You'll also want warranty documents for the panels and inverter, any roof warranty connected to the installation, and recent power bills or monitoring data that show how much the system produces. If the system is leased or financed, the solar company may have a filing on the property records that needs to be resolved before closing. Having all of this ready before you list helps your agent disclose the system clearly and keeps the title company and lender from holding up closing.
Should I pay off my solar lease before selling my house?
In many cases, yes. Paying off or buying out a solar lease at closing removes the need for the buyer to qualify with the solar company, takes the lease payment out of the buyer's debt to income calculation, and clears any filing on the property records. That makes your home easier to sell and can prevent delays. The decision depends on the buyout cost compared with your sale proceeds and how interested buyers are in assuming the lease. Ask your solar company for a buyout quote before you list, and we can compare that number against your other options so you make the call with real numbers.
If you're selling a home with solar in Murray or anywhere on the east bench, reach out. We'll figure out exactly what kind of system you have, gather the paperwork, and build a plan so the panels on your roof don't turn into a delay at the closing table.
