Quick answer
An owned, paid-off system usually transfers with the house and can add value. A financed system usually has to be paid off at closing or assumed by the buyer. A leased or PPA system needs the buyer to qualify for and take over the agreement. In every case, start early: solar companies often record a filing that must be released before the sale can close.
What happens to solar panels when you sell an Illinois home?
| System | At closing | Effect on the buyer |
|---|---|---|
| Owned, paid off | Transfers with the house like any fixture | Lower electric bills, warranties transfer if the paperwork is in order |
| Owned, with a solar loan | Loan paid off from sale proceeds, or assumed if the lender allows | Buyer takes a clean system or the remaining payments |
| Leased or PPA | Buyer applies to take over the agreement, or seller buys out or prepays it | Buyer takes on the monthly payment or per-kWh price for the rest of the term |
Do solar panels increase home value in Illinois?
Owned systems tend to. A Berkeley Lab study of sales across eight states from 2002 to 2013 found buyers paid about $4 per watt more for homes with owned solar, around $15,000 for an average 3.6 kW system at the time. Leased systems are different: a later Berkeley Lab study found homes with leased solar sold for about the same as homes without solar.
In Illinois, buyers don't pay higher property taxes because of the panels, since homes with solar can be assessed as if they had a conventional energy system. See solar and Illinois property taxes.
What is a UCC filing on solar panels?
Many solar lenders and leasing companies record a UCC financing statement, sometimes as a fixture filing with the county, to show their interest in the equipment. It shows up in the title search, and the title company will typically want it paid off and released (or the agreement formally transferred) before closing. Clearing it can take weeks if the loan or lease has been sold to another company.
How do I prepare to sell a home with solar?
- 1
Gather the paperwork
Contract, warranties, permits, interconnection approval, monitoring login and any loan or lease statements.
- 2
Find out who holds the loan or lease now
Request a payoff letter or the lease transfer process, and ask whether a UCC filing was recorded.
- 3
Tell your agent and title company early
They can order the release or transfer before buyers are under contract.
- 4
Show buyers the savings
A year of electric bills and production data makes the system's value concrete.
This guide is general information, not legal advice. A real estate attorney can review your solar documents before you list.
Sources
This guide is general information, not tax, legal or financial advice. Incentive programs change, so confirm current terms with your installer, your utility and a tax professional.