Arizona buyer question
What does a solar lease or PPA mean when I buy a home in Arizona?
Lots of Arizona homes have rooftop solar, but who owns the panels changes your monthly budget and your loan. Here's how to tell, and what to ask for.
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The short answer
Quick answer: If the panels are leased or under a power purchase agreement, a solar company owns them, and you'd take over the contract. Under Fannie Mae's guide, the monthly lease payment usually counts in your debt-to-income ratio, and leased panels add nothing to the appraised value. Get the full agreement and transfer terms before your inspection period ends.
Source: Fannie Mae Selling Guide, B2-3-04, Properties with Solar Panels (retrieved November 5, 2026). Last updated .
Four ways the panels can be owned
| Setup | What it means | How a lender usually treats it |
|---|---|---|
| You own them outright | Paid in cash, included in a past purchase, or financed and paid off | Treated like the rest of the house; standard appraisal, insurance and title rules |
| Separately financed | A loan secured by the panels, sometimes with a UCC fixture filing in the county records | The loan payment counts in your debt-to-income ratio, and the lien may need to be paid or handled at closing |
| Leased | A third party owns the panels; you pay a monthly lease payment | The lease payment usually counts in your debt-to-income ratio, and the panels add no value in the appraisal |
| Power purchase agreement (PPA) | A third party owns the panels; you buy the power they produce | A payment based only on energy produced may be left out of the debt-to-income ratio; the panels add no value in the appraisal |
Source: Fannie Mae Selling Guide B2-3-04, Properties with Solar Panels (11/04/2026). Other loan programs have their own rules; ask your loan officer which apply.
What it means for your monthly budget
A solar lease is a monthly bill that sits next to your house payment. Add it to your budget along with the electric bill you'd still get from the utility. Under Fannie Mae's rules the lender counts the lease payment in your debt-to-income ratio unless the lease is structured with a fixed payment for a set amount of energy and a production guarantee. A PPA payment calculated only on the energy produced may be left out. Either way, ask for a year of the seller's solar and utility bills so you're budgeting from real numbers, not a sales projection.
Create your free account to see all homes for sale that fit the monthly payment you're comfortable with, each with its actual property taxes, HOA dues, estimated homeowners insurance, and mortgage insurance when it applies, plus its own estimated closing costs and APR disclosure.
Opens a third-party home search site. Payments shown there are estimates to help you search, not a loan offer or rate quote. Your actual payment depends on price, down payment, credit, taxes, insurance, HOA, and loan program.
What the lender will look for
- A copy of the lease or PPA. The lender must review it.
- Roof damage terms. The agreement should make the panel owner responsible for damage from installation, malfunction or removal.
- Insurance. The panel owner shouldn't be a named loss payee on your homeowners policy.
- Backup power. The home must still have access to regular utility power.
- Title. A "precautionary" UCC filing that covers only the solar equipment is acceptable; a lien on financed panels is handled differently.
Arizona's solar contract rules
Arizona law (A.R.S. §44-1763) requires solar sale and lease agreements to spell out the total cost over the life of the agreement, warranty periods, maintenance costs, and any limits on transferring the system or the home, and to warn that utility rates and projected savings can change. Subsection G says those disclosure rules don't apply when the system is transferred as part of a home sale. So the protections cover the seller's original contract, not your takeover of it. Read that original agreement yourself. A.R.S. §44-1762 also sets minimum warranty terms for systems sold or installed in Arizona.
What to ask for before you're past the inspection period
- The full lease or PPA, including the payment schedule, any yearly increases, the end date and what happens at the end.
- The solar company's transfer requirements and timeline, and whether you must qualify with them.
- Whether the seller plans to pay off or buy out the system instead of transferring it.
- Recent solar and utility bills, and the warranty and maintenance terms.
- Your home inspector's notes on the roof and panels.
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Related: the seller's property disclosure (SPDS) · appraisal vs. inspection · homeowner costs renters don't pay · how much house can I afford? · more questions.
General information, not legal or tax advice and not a loan offer. Solar contracts vary; the signed agreement controls. Your agent, loan officer or an attorney can review a specific contract.
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Search Arizona homes with each home's property taxes, HOA dues, and insurance built into the estimated payment. We never sell your information or pass it to other lenders or marketers. Only Rebel Rate Mortgage, Inc. contacts you.
Create your free account to see all homes for sale that fit the monthly payment you're comfortable with, each with its actual property taxes, HOA dues, estimated homeowners insurance, and mortgage insurance when it applies, plus its own estimated closing costs and APR disclosure.
Opens a third-party home search site. Payments shown there are estimates to help you search, not a loan offer or rate quote. Your actual payment depends on price, down payment, credit, taxes, insurance, HOA, and loan program.
Prefer to talk it through? Pam Messina, NMLS #245626
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Sources
- Fannie Mae Selling Guide, B2-3-04 Special Property Eligibility Considerations (11/04/2026): Properties with Solar Panels (retrieved November 5, 2026)
- Arizona Revised Statutes §44-1763 (distributed energy generation system agreements; required disclosures; subsection G) (retrieved November 5, 2026)
- Arizona Revised Statutes §44-1762 (solar energy device warranties; installation standards) (retrieved November 5, 2026)
Frequently asked questions
Can I buy a house with leased solar panels in Arizona?
Yes. You'd usually take over the lease or PPA, subject to the solar company's transfer process, or the seller may pay it off. Your lender will review the agreement.
Does a solar lease payment count against my loan qualification?
Under Fannie Mae's guide, the monthly lease payment is generally included in your debt-to-income ratio. A PPA payment based only on energy produced may be excluded.
Do leased solar panels add value to the appraisal?
No. Under Fannie Mae's guide, leased panels and panels under a PPA can't be included in the home's appraised value.
What's the difference between a solar lease and a PPA?
With a lease you pay a set monthly amount to use panels a solar company owns. With a PPA you pay for the electricity the panels produce.
Does Arizona's solar disclosure law protect me as the buyer of the home?
A.R.S. §44-1763 requires detailed disclosures in the original solar agreement, but subsection G says those rules don't apply to a transfer that's part of a home sale. Read the original agreement carefully.