Guest blog post by Certified Divorce Real Estate Expert Joe Gordon
As solar panels become commonplace in property sales, they’re also emerging as one of the messiest complications to navigate — promising clean energy but creating anything but a clean process.
The solar industry is still very much the Wild West: largely unregulated, driven by aggressive sales tactics, and riddled with bankruptcies that leave homeowners stranded without warranties or support. What once looked like a simple “green upgrade” has turned into a legal and contractual minefield, impacting everything from settlement language to disclosures — and, most importantly, a home’s true value and equity.
Here are the key questions we’re getting — and what they mean for your clients.
Q. What are the differences between owned and leased solar panels?
A. Owned systems can usually be conveyed with the property, but leased panels (or power purchase agreements) require transfer paperwork and buyer approval. These contracts can add time and complexity to escrow.
Q. Can buyers just take over loans or leases?
A. The reality is that some solar loans require full payoff before closing, while others may allow transfer. Bankruptcies like Mosaic’s have left many sellers scrambling to pay off balances in order to close — often $30,000 – $80,000 or more — typically from the sale proceeds. Leases and Power Purchase Agreements (PPAs) are generally easier to transfer, particularly when backed by larger players like Sunrun or Tesla.
Q. Does Solar increase value?
A. Sellers often assume the answer is yes. While appraisers sometimes assign value to owned systems in areas with high adoption, leased systems rarely increase value and can even be seen as a liability by buyers. In short: solar doesn’t always equal equity.
Q. What are the biggest snags in solar right now?
- Bankruptcies: 30–40% of solar companies have gone under, voiding installation warranties. Homes with unsupported systems often face delays or buyer concessions.
- Roof issues: Many panels were installed on failing roofs; removal/reinstallation can cost $250–$300 per panel. Buyers are now requesting solar inspections, adding repair costs.
- Disclosures: Sellers are often unclear on the terms of their solar system. Misstating ownership status (owned vs. leased vs. financed) can lead to litigation.
Q. What is the solar industry’s outlook?
A. The federal 30% solar tax credit expires after December 31, 2025, unless systems are fully installed before then. Expect a surge of last-minute installs followed by an industry contraction, with more companies likely going bankrupt — adding more instability for homeowners trying to sell.
Q. How does solar impact a home’s equity?
A. The real issue in divorce cases is equity. A system that looks like an asset may reduce marketability, require costly repairs, or have to be paid off at closing — all of which undercut equity. For attorneys, this means your client’s true equity position may not be what it appears.
In this unregulated Wild West of solar, the fine print can turn what looks like an asset into a liability. By spotting these issues early, we can protect our clients from surprises and ensure smoother settlements.
If you have additional questions about solar or need assistance with your home as part of a divorce proceeding, we (i.e., Gordon Real Estate Group) are here to help.
Joe Gordon
Broker / Owner / Certified Divorce Real Estate Expert
Gordon Real Estate Group
801-577-6304