Solar Panels, Leases, Liens, and Surprises: What Every NJ Buyer Should Know Before Signing

Solar panels can be a gift or a gremlin in a real estate deal. When they are owned outright, everyone smiles. When they are leased or financed, the deal suddenly sprouts extra paperwork, extra timelines, and unexpected complications that can stall a closing right when everyone thinks they are coasting downhill.

What keeps tripping buyers and their agents? It usually comes down to knowing who actually owns the panels and what obligations the buyer is expected to take on. A seller may insist that the panels are theirs, but a quick search often uncovers a solar company with a UCC filing attached to the property. That filing is the company’s way of saying, “We still have an interest in this equipment.” It must be addressed before closing. Buyers should also review the solar agreement itself. Rates, escalators, transfer rules, and any approval requirements often hide in the fine print. Some contracts require a credit check or a transfer fee. Others require scheduling a technician to inspect the system before the panels can legally change hands.

The best time to sort all of this out is during attorney review, not two weeks before closing. Buyers should ask for the full solar contract, recent statements, and any notices from the solar company. Agents can save everyone stress by flagging solar panels early in the listing or showing process and nudging sellers to gather their documents ahead of time. A little early sunlight keeps the entire transaction warm and bright and helps avoid the last minute scramble that happens when buyers learn they are inheriting not only a house but a long term energy agreement they never had a chance to evaluate.