Selling a Home with Solar Panels on Oahu: Owned, Leased or PPA

Selling a home with solar panels on Oahu comes down to two questions: who owns the panels, and which Hawaiian Electric program the system is on. Answer those two before you list, gather the paperwork that proves it, and solar becomes a selling point instead of an escrow delay.

Hawaiian Electric estimated in November 2025 that about 49% of all single-family homes on Oahu have rooftop solar. So your buyer, their lender and their appraiser will likely all ask about your panels. Here is what they ask and which documents to pull. For the whole selling process, start with my complete guide to selling a house on Oahu.

In this guide:

• Owned vs leased vs financed vs PPA
• What happens to your Hawaiian Electric program
• What buyers and lenders ask for
• Documents to gather before you list
• Selling a home with leased solar or a PPA
• Disclosing solar to your buyer
• At closing: switching the electric account
• Mistakes I see sellers make
• FAQ
• Bottom line

Selling a Home with Solar Panels on Oahu: Owned vs Leased vs Financed vs PPA

Most sellers know they have solar. Fewer can tell me exactly how they pay for it, and that one detail changes almost everything about the sale.

The Federal Trade Commission explains the difference simply: with a lease you pay to use a system the company owns, often on a contract of about 20 years, and with a PPA you agree to buy the power the system makes at a price the provider sets. It also warns that lease payments can rise over time and that ending a lease early can be difficult and expensive (FTC: Solar Power for Your Home).

Not sure which you have? Look at who you pay each month. A solar company means a lease or PPA, a lender means a loan, and no payment usually means you own it. Confirm with the original paperwork.

Does the Hawaiian Electric Solar Program Transfer to the Buyer?

Yes. Hawaiian Electric’s page on transferring, buying or selling a property with a rooftop solar system says a buyer assumes all the rights and responsibilities of the previous owner’s existing agreement, can stay enrolled in the program, and keeps its benefits. If the lease on the system has changed, the utility says it may ask for documentation, and it lists connect@hawaiianelectric.com for questions.

What the buyer inherits depends on your program, and the names have changed several times over the years.

Source: Hawaiian Electric’s customer renewable programs and Smart Renewable Energy programs pages. Credit rates change, so check those pages for current numbers.

Two details buyers appreciate hearing early. First, according to Hawaiian Electric’s September 2024 announcement, the CGS to SRE switch is automatic, the customer is notified by email or mail as the date approaches, and customers are enrolled in the Shift and Save time of use rate, which they can decline. Second, if your agreement is NEM, do not let anyone casually “add a few panels” before closing. Hawaiian Electric says amendments to existing agreements are subject to review and new capacity may be limited by what the program allows.

What Buyers and Lenders Ask For When a Home Has Solar

Most of the hard questions come from the buyer’s lender, not the buyer. A common rulebook is Fannie Mae’s Selling Guide section B2-3-04, Properties with Solar Panels (current version dated Oct. 8, 2025). FHA, VA and other programs have their own rules. Here is the Fannie Mae version in plain English.

If you own the panels

Standard appraisal, insurance and title rules apply. Owned panels are treated like part of the house.

If the panels are financed

• If the financing is secured with a UCC fixture filing recorded in the land records, the debt counts in the buyer’s debt to income ratio if they take it on, and any senior fixture filing has to be subordinated so the new mortgage stays in first position.
• If the panels are financed but the debt is not on the title report, the appraiser gives the panels no contributory value.
• If ownership is unclear, no value goes to the panels on the appraisal unless the lender gets a UCC personal property search showing no other lender claims them.

If the panels are leased or on a PPA

• The lender must get and review a copy of the lease or PPA.
• “The value of the solar panels cannot be included in the appraised value of the property.” That is a direct quote from the guide.
• A fixed monthly lease payment counts in the buyer’s debt to income ratio unless the lease meets specific conditions, including a prorated production guarantee. PPA payments based only on power produced may be left out.
• The home must keep access to an alternate power source, which on Oahu means staying connected to the grid.
• The solar company cannot be a named insured or loss payee on the homeowner’s insurance policy.

What this means for you: do not price a leased or PPA system as if it adds appraised value for a Fannie Mae buyer, and get the contract into the file early, because the lender cannot clear the loan without it.

Documents to Gather Before You List a Home with Solar

This is the checklist I give sellers. Pull it together before photos.

• Proof of ownership: purchase contract and paid invoice, or the loan payoff letter if it is paid off.
• Your solar contract, if leased, financed or PPA: the full signed agreement, including the transfer, buyout and early termination sections.
• A current payoff or buyout quote from the solar company or lender, with the date it expires.
• Your Hawaiian Electric solar agreement showing the program (NEM, CGS, Smart Export, SRE) and the agreement date.
• 12 months of electric bills, so buyers can see what the home actually costs to power.
• Permits and inspection sign-offs for the original install and any later changes, including batteries.
• Warranties: panels, inverter, battery and roof penetration or workmanship warranties, with the company contact.
• Any UCC filing paperwork, so your escrow officer can see what will need to be released or subordinated.

Thinking about selling a home with solar and want to know where you stand? Get a free home value, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.

Selling a Home with Leased Solar Panels or a PPA on Oahu

A lease or PPA does not stop you from selling, but it adds a third party with its own process and timeline to your deal.

The FTC’s guide lists the questions to answer from your contract before you sell: are you allowed to transfer the contract to the buyer, will the buyer have to meet credit requirements or pay fees to take it over, and are there early termination fees or other charges to end it early. Your contract will usually give you some mix of these options:

• Transfer to the buyer. The buyer applies with the solar company and takes over the payments and the agreement. The buyer has to agree and qualify.
• Buy the system. If your contract allows it, you purchase the equipment, often from your proceeds, so it conveys as owned and the buyer has no solar payment.

My advice: call the solar company the week you decide to sell, not the week you get an offer, and ask for the transfer packet and a buyout quote. Then we write the solar terms into the purchase contract. Have a real estate attorney read anything unclear.

Disclosing Solar Panels When You Sell in Hawaii

Hawaii’s seller disclosure law requires you to disclose material facts you know about. HRS 508D-1 defines a material fact as any fact, defect or condition, past or present, that would be expected to measurably affect the value of the property to a reasonable person. A solar lease or PPA is an ongoing contract the buyer may have to take over, so treat it as something to disclose, along with any loan or filing tied to the system, any roof leaks around the panels, and any equipment that is not working.

Disclose the install date, any battery added, and permit status too. This is general information, not legal advice. If you are unsure whether something must be disclosed, ask a real estate attorney.

At Closing: Switching the Hawaiian Electric Account

The solar agreement transfers to the buyer, but the electric service account is still yours until you stop it. Hawaiian Electric’s start, stop or move service page says to submit a stop request at least one business day in advance (you can schedule it up to 30 days out), and you are billed for energy through your requested stop date. The buyer starts service in their own name with one business day of notice and a $20 service establishment fee.

Line up the stop date with closing and possession.

Mistakes I See Sellers Make with Solar

• Listing before finding the solar contract. On a lease or PPA, the buyer’s lender must review it.
• Assuming leased panels add appraised value. For a Fannie Mae loan they do not.
• Adding panels or a battery to a NEM system right before selling without checking how the change affects the agreement.
• Not telling buyers the Hawaiian Electric program and agreement date, so they cannot judge future bills.

Also remember your other seller costs while you are building a net sheet. Solar payoffs come out of the same proceeds as the Hawaii conveyance tax. If you live on the mainland now, my guide to selling Oahu property from out of state covers how to handle all of this remotely.

Selling a Home with Solar on Oahu: FAQ

Can I sell my house on Oahu if my solar panels are leased?

Yes. The buyer usually takes over the lease, or you pay it off or buy the system, depending on what your contract allows.

Does my Hawaiian Electric net metering agreement transfer to the buyer?

Hawaiian Electric says a buyer of a property with rooftop solar assumes all the rights and responsibilities of the previous owner’s existing agreement and can stay enrolled in the program. NEM and NEM Plus customers are not required to move to the newer programs.

What happens to a Customer Grid Supply agreement when I sell?

It transfers to the buyer, and it still moves to Smart Renewable Energy Export no later than seven years after the original agreement date. The switch is automatic and Hawaiian Electric notifies the customer as the date approaches.

Do leased solar panels add value to my home in an appraisal?

Not for a loan sold to Fannie Mae. Its Selling Guide says the value of leased or PPA panels cannot be included in the appraised value.

Do I have to disclose solar panels when selling in Hawaii?

Hawaii law requires sellers to disclose material facts, meaning anything expected to measurably affect value to a reasonable person. Disclose the ownership type, any contract or lien, and the system’s condition.

Selling a Home with Solar Panels on Oahu: The Bottom Line

Solar is normal on Oahu, and buyers expect it. What slows a sale is not the panels, it is missing paperwork. Know whether you own, finance, lease or have a PPA, know your Hawaiian Electric program and agreement date, and have the contract, payoff quote, bills, permits and warranties ready before you list.

This is general information, not legal or tax advice. Confirm your own situation with a real estate attorney or CPA, and check current program details with Hawaiian Electric.

Sources

• Hawaiian Electric: Transferring, Buying or Selling a Property with a Rooftop Solar System
• Hawaiian Electric: Customer Renewable Programs
• Hawaiian Electric: Smart Renewable Energy Programs
• Hawaiian Electric: Transition of rooftop solar customers to Smart Renewable Energy (Sept. 4, 2024)
• Hawaiian Electric: Nearly half of all Oahu single-family homes now have rooftop solar (Nov. 25, 2025)
• Hawaiian Electric: Start, Stop or Move Service
• Fannie Mae Selling Guide B2-3-04, Special Property Eligibility Considerations (Oct. 8, 2025)
• Federal Trade Commission: Solar Power for Your Home
• Hawaii Revised Statutes 508D-1, Definitions

Getting ready to sell a home with solar? Let’s sort out the paperwork before you list so nothing surprises you in escrow. Get a free home value, or call or text me at (808) 459-6450. I am Devin Hammack with Team Taparra at eXp Realty.