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Solar panels are everywhere across Arizona — and for good reason. With our abundant sunshine and rising utility costs, solar can absolutely make sense for some homeowners. But before signing a long-term solar agreement, there are several important factors many homeowners never hear about until they’re trying to sell their home or deal with repairs years later.
At ProStar Realty, we’ve worked with buyers and sellers across Arizona for decades, and we’ve seen firsthand how solar panels can either help a sale… or create major complications.
Here are some of the biggest things homeowners should understand before moving forward with solar installation.
1. Your Roof’s Age Matters More Than You Think
One of the biggest mistakes homeowners make is installing solar panels on an aging roof.
Solar panels often stay in place for 20–30 years. If your roof only has a few years of life left, you could end up paying thousands later to remove and reinstall the entire solar system just to complete normal roof repairs or replacement.
Many homeowners don’t realize:
· Roofers typically cannot work around the panels
· The solar company usually must remove them first
· Removal and reinstallation costs are often not included in your original contract
· Scheduling multiple companies can delay repairs significantly
Before installing solar, homeowners should strongly consider having a roofing inspection completed to determine the remaining life of the roof.
2. Solar Can Complicate the Home Selling Process
This is one of the biggest concerns we hear from buyers in today’s market.
Not all solar systems are treated equally. Buyers may hesitate when they discover:
· There is a solar lease attached to the property
· The loan must be assumed by the buyer
· The seller still owes a large balance
· The monthly payment offsets the actual utility savings
· The system warranty or service terms are unclear
In some cases, buyers walk away entirely because they don’t want to inherit a complicated solar agreement.
Owned solar systems are generally viewed more favorably than leased systems, but even then, buyers still want documentation, warranties, utility history, and information on who services the system.
3. What Happens if the Solar Company Goes Out of Business?
This is another issue many homeowners don’t think about upfront.
The solar industry has seen rapid growth — but also rapid closures. Some companies that installed systems just a few years ago are no longer operating today.
When that happens, homeowners can be left dealing with:
· Difficulty obtaining repairs or warranty service
· Confusion over who now owns the contract
· Monitoring systems that stop functioning properly
· Delays finding qualified technicians willing to service another company’s equipment
Even if financing remains active, service support may disappear.
Before signing any agreement, homeowners should research:
· The company’s reputation and history
· Warranty transferability
· Who handles long-term servicing
· Whether replacement parts are readily available
4. Long-Term Contracts and Escalation Clauses Can Be Costly
Many solar agreements are not simple month-to-month arrangements. Some contracts lock homeowners into 20–25-year terms that can become difficult to exit later.
One of the biggest things homeowners overlook is the annual escalation clause built into many solar leases. While the monthly payment may start low, some contracts increase the payment percentage every year for the life of the agreement.
Over time, that can significantly reduce the projected savings homeowners expected when they originally signed up.
Another common misconception is that homeowners can simply “cancel” the agreement if they move or change their mind. In reality, many solar contracts require:
· The buyer to assume the solar agreement
· The seller to pay off the remaining balance in full
· A large payoff amount before the home can close escrow
This becomes especially important when selling a home, because buyers may not want to take over a long-term solar contract with increasing payments.
Before signing, homeowners should carefully review:
· Contract length
· Annual payment increases
· Transfer requirements during a sale
· Early payoff terms
· Whether there is an actual buyout option available
Understanding these details upfront can help homeowners avoid major surprises years later.
5. Not Every Home Is an Ideal Solar Candidate
Solar isn’t one-size-fits-all.
Factors like roof orientation, shade coverage, HOA restrictions, energy usage, and future plans to move can all impact whether solar makes financial sense.
A homeowner planning to stay in a property for 15–20 years may benefit differently than someone expecting to sell within a few years.
6. Ask Questions Before You Sign Anything
Solar sales presentations can move quickly, especially when homeowners are promised immediate savings or limited-time incentives.
Before signing:
· Read the full contract carefully
· Understand whether you are leasing or owning the system
· Review transfer requirements if you sell the home
· Verify removal/reinstallation costs
· Ask about roof warranty impacts
· Compare projected savings versus actual monthly obligations
Final Thoughts
Solar panels can absolutely be beneficial for some Arizona homeowners — but they should be approached as a major home investment, not an impulse decision.
The reality is that many homeowners don’t fully understand the long-term maintenance, resale, and contractual obligations until years later when they refinance, replace a roof, or try to sell their home.
If you’re considering buying or selling a home with solar panels in Arizona, working with an experienced real estate professional can help you avoid costly surprises and better understand how solar may impact your property value and marketability.
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