If you drive through the Catalina Foothills or Dove Mountain, you will see solar panels on nearly every other roof. But for sellers in 2026, solar panels can either be a massive selling point or a deal-killing liability. It all depends on one word: Ownership. (For a full checklist of documents needed to sell a solar home, see our Ultimate 2026 Guide to Selling Your Home in Tucson.)

Here is the hard truth about how solar impacts your home value in Pima County.

1. Owned Solar: The Equity Booster

If you paid off your system in full, congratulations. You have a distinct advantage.

• The Value Add: In the luxury market ($800k+), owned solar typically adds 3% to 4% to the resale value.
• The Buyer Mindset: Buyers see "Free Electricity." With TEP (Tucson Electric Power) rates rising, a grandfathered net-metering plan is a goldmine.
• The Strategy: We market your TEP bills. Showing a buyer a $13 summer electric bill for a 3,000 sq. ft. home is the most powerful marketing tool we have.

2. Leased Solar: The Transaction Anchor

If you are leasing your panels (e.g., Tesla/SolarCity, Sunrun) or have a Power Purchase Agreement (PPA), selling becomes complex.

• The Problem: The buyer must qualify to take over your lease. If they have a high debt-to-income ratio, the solar lease payment could disqualify them from their mortgage.
• The Objection: Many luxury buyers do not want to sign a contract for 15 more years on 5-year-old technology.
• The Solution: To sell a home with leased solar in 2026, you may need to prepay the lease at closing. Do not expect the buyer to assume it without a concession.

3. The "Grandfathered" TEP Rate

This is a critical detail most agents miss. If you installed solar before certain TEP rate hikes, you are on a favorable "Net Metering" plan.

Seller Tip: Call TEP before listing. Confirm if your rate plan is transferable to the new owner. If it is, that is a massive negotiating chip worth thousands of dollars.

Summary

Owned solar sells homes. Leased solar requires a strategy. Don't let your panels become a problem during escrow.

Have a solar lease and want to know your options? Contact Oliver Realty for a review of your solar contract and home value.

🎧 Read the Full Audio Transcript: The "Solar Surprise" & Selling Guide

Speaker: Michael Oliver, Oliver Realty

This is Michael Oliver with Oliver Realty. We need to have a talk about the "Solar Surprise." It happens every month in Tucson. A seller gets an offer, they are ready to close, and suddenly everything grinds to a halt because of the solar panels on the roof.

If you are asking, "How do I sell my home with solar panels?" or "What happens to my lease?", you need to know that solar is not just a feature. It is a legal contract attached to your property.

Do Solar Panels Increase Home Value?

First, the most common question: Do solar panels increase my home's value? The answer is it depends entirely on ownership.

• Owned Panels: If you own them outright? Yes. In Arizona, owned solar can add 3-5% to your home's value because buyers love free electricity—or at least really, really cheap electricity.
• Leased Panels: If you lease them? No. A lease is a debt obligation that the buyer has to take on. It generally does not add to the list price and can actually narrow your buyer pool. We've had deals like that where buyers just did not want to deal with a lease. While these leases have "step-ups" in them in later years, it can be a thorny issue.

The Hidden Obstacle: UCC-1 Filing

Here is another thing that catches people off guard: What is a UCC-1 Filing? Even if you think you don't have a lien on your house, the solar company likely filed a UCC-1 Financing Statement. This is a claim on the equipment itself.

Why does this matter? Because a buyer's mortgage lender often won't fund the loan until they see that the filing is handled. We often have to get this temporarily lifted or transferred, and it takes time.

Transferring the Lease

How do I transfer a solar lease? It is not automatic. The buyer has to qualify for your solar lease just like they qualify for their mortgage. If they have a high debt-to-income ratio, the solar company can reject them.

Tip: Start with the transfer process 30 days before closing. Do not wait until the last week. Again, we've had deals where the buyer barely qualifies for the mortgage, and a solar lease of $150 or even $100 a month makes them not qualify for the house anymore.

Appraisals & The "Green Addendum"

Finally, how do I prove the value to an appraiser? Standard appraisers often miss the value of solar. At Oliver Realty, we ensure the appraiser uses the Green Addendum (Form 820-05). This is a specific document that forces the appraiser to calculate the energy savings as actual value. Without it, you are leaving money on the table.

Can I Move My Solar Panels?

I’ve also had one other thing happen with solar—it only happened once, but it is an option. One of our clients was actually able to move all the panels and equipment to his new house. I hesitate to recommend it because it was a one-off type of thing, but if you have solar and you like it, that might be another option because panels can be tricky to get a buyer to pay for.

Solar is great for living, but complex for selling. If you want to navigate the lease transfer without losing your buyer, give us a call at Oliver Realty: 520-800-8922.