Solar Freedom Blog Post

Selling a House With a Solar Loan: What Homeowners Must Know (2026)

Trying to sell your house but have a solar loan? Learn what happens to your solar agreement when you sell and what your options are.

Consumer Guide

A solar loan can complicate a home sale in ways that most homeowners do not anticipate. Here is what you need to know before you list.

A solar loan can complicate a home sale in ways that most homeowners do not anticipate. When you are ready to sell, you discover that the solar loan is attached to your home, that buyers are not excited about assuming it, and that paying it off at closing might eat into your equity more than you expected.

The Three Scenarios

Scenario 1: Pay Off the Loan at Closing

This is the most straightforward option. You use the proceeds from the home sale to pay off the solar loan balance. The problem is that solar loans often have balances of $25,000-$50,000, and the system may not have added equivalent value to the home. You could end up paying off a loan that did not increase your sale price.

Scenario 2: Transfer the Loan to the Buyer

Some solar loans are assumable, meaning the buyer can take over the loan. But many buyers are reluctant to assume a solar loan, especially if the payment is high relative to the savings. This can reduce your pool of potential buyers and complicate negotiations.

Scenario 3: PACE Loans

PACE (Property Assessed Clean Energy) loans are attached to the property, not the homeowner. They transfer automatically to the new owner. Many buyers refuse to purchase homes with PACE loans, which can make your home much harder to sell.

💡 If your solar loan is a PACE loan, it is secured by your property and will appear on the title. Many conventional mortgage lenders will not finance a home with an existing PACE lien, which significantly limits your pool of potential buyers.

What This Means for Your Decision

If you are planning to sell in the next few years, a solar loan that cannot be easily resolved is a significant problem. This is one of the most common reasons homeowners seek to exit their solar agreements -- not because the system is bad, but because the financing structure creates problems they did not anticipate.

⚠ If your salesperson told you that solar would increase your home's value and make it easier to sell, and you are now discovering the opposite, that may constitute a material misrepresentation. Document what you were told and get a contract review.