In California, the buyer of a property with a solar lease is typically required to assume the lease agreement, unless negotiated otherwise. This allows the buyer to continue benefiting from the solar energy system installed on the property.

Solar energy has become increasingly popular in California as residents seek to lower their carbon footprint and reduce their electricity bills. Many homeowners have opted to lease solar panels rather than purchasing them outright, as it is a more affordable option. However, when the time comes to sell a home with a leased solar system, many buyers are left wondering if they will be forced to assume the solar lease.

The short answer is no, buyers do not have to assume a solar lease in California. However, there are some important considerations that both buyers and sellers should be aware of when it comes to transferring a solar lease.

First and foremost, it is important for sellers to disclose the existence of a solar lease to potential buyers. This should be done early in the sales process to avoid any surprises down the line. Sellers should provide buyers with a copy of the solar lease agreement, as well as any other relevant documentation such as energy production reports and maintenance records.

Buyers should carefully review the terms of the solar lease to understand their rights and obligations. It is important to know how long the lease term is, what the monthly payments are, and if there are any escalation clauses that could result in higher payments in the future. Buyers should also inquire about any potential fees for transferring the lease to their name.

One option for buyers is to request that the seller buy out the solar lease before the sale of the home is finalized. This would involve the seller paying off the remaining balance of the lease and transferring ownership of the solar system to the buyer. While this can be a costly option for sellers, it may make the home more attractive to potential buyers who do not wish to assume a solar lease.

Another option for buyers is to negotiate with the seller to include the solar lease as part of the purchase agreement. This would involve the buyer assuming the solar lease and making the monthly payments themselves. Buyers should carefully consider whether they have the financial means to take on this additional expense, as failing to make payments on the solar lease could result in penalties or even legal action.

It is important for both buyers and sellers to understand that transferring a solar lease can be a complex process that requires careful attention to detail. Sellers should work closely with their solar provider to ensure that all necessary paperwork is completed and submitted in a timely manner. Buyers should seek the guidance of a real estate agent or attorney to ensure that they fully understand the terms of the solar lease before agreeing to assume it.

In some cases, sellers may be able to transfer the solar lease to a new property if they are moving to a new home. This would involve working with the solar provider to evaluate the new property for solar suitability and transferring the lease to the new address. Buyers considering purchasing a home with a leased solar system should inquire about the possibility of transferring the lease to their name if they plan to move in the future.

In conclusion, buyers do not have to assume a solar lease in California, but they should carefully consider their options before making a decision. Sellers should disclose the existence of a solar lease to potential buyers and work with their solar provider to facilitate a smooth transfer process. By working together, both buyers and sellers can ensure that the sale of a home with a leased solar system is a positive and successful experience.