Are you working with a buyer or seller of a home with solar panels?

Here are five key questions to consider upfront.

1. Are the panels owned or leased? If the seller purchased the panels, the seller may have taken out a home equity loan or other form of financing to pay for them.
2. If the panels are leased, can they be transferred to a new buyer? If they can be transferred, will the buyers qualify financially to assume the loan? If they cannot be transferred, the seller will need to pay off the balance in full at the time of closing. Some sellers may not even know how much they owe.
3. Has a lien for the solar panels been recorded against the property? The lien will need to be addressed before closing. Check the UCC-1 –Uniform Commercial Code filings on the RI Secretary of State’s website.
4. Are energy incentives or tax credits available? Check out this Rhode Island guide to rebates and incentives.  If the seller currently qualifies for incentives, can they be transferred to the buyer?
5. Were the panels installed by a Renewable Energy Professional? Check the Rhode Island Office of Energy Resources for a list of trained solar professionals.

RESOURCES: Rhode Island’s Residential Guide to Going Solar includes information about solar energy, providers, and contractors. 

The RIAR Forms Committee is in the process of creating a Solar Addendum to the Purchase and Sales Agreement to help address some of these issues.

Questions? Please contact the RIAR Legal Department at 401-432-6945 or email [email protected].