Homebuying in Palm Desert: Residential Solar Checklist
Buying a home with solar panels in Palm Desert can be a major benefit. An existing system may help reduce electricity costs, provide protection from rising utility rates, and even offer backup power if battery storage is installed.
However, residential solar should never be treated as just another feature of the house. Before buying, you need to understand what you’re inheriting—from equipment condition and energy production to financing, warranties, and net metering agreements.
10 Item Checklist for Residential Solar in Palm Desert
Here are 10 important things to check before buying a home with solar panels.
1. Find Out Who Owns the Solar System
Don’t assume the solar panels belong to the seller simply because they’re installed on the property. The system may be owned outright, financed through a solar loan, or owned by a third party through a lease or Power Purchase Agreement (PPA). Ask for the original solar contract and current financing documents. Determine who owns the equipment, whether a balance remains, and what obligations must be addressed when the home changes ownership. A paid-off system is typically the simplest arrangement because the equipment is generally included with the property without an ongoing solar payment.
2. Understand the Financing Agreement
If the system isn’t paid off, determine whether it involves a solar loan, lease, or PPA. With a solar loan, there may be a remaining balance that must be paid during escrow or handled according to the financing agreement. Don’t assume the loan automatically transfers with the property. With a solar lease, a third party typically owns the equipment while the homeowner makes monthly payments. Review the remaining term, payment amount, annual increases, transfer requirements, and potential buyout options. Alternately, with a PPA, the third party generally owns the system while the homeowner purchases the electricity it produces at an agreed rate. Review the current electricity rate, future increases, remaining contract term, and transfer conditions. Understanding these obligations before closing can help prevent unexpected costs later.
3. Verify the Net Metering Agreement
For California homes, find out which utility agreement applies to the solar system.
Depending on when the system received Permission to Operate (PTO), it may fall under NEM 1.0, NEM 2.0, or the current Net Billing Tariff commonly called NEM 3.0. This can significantly affect the value of electricity exported to the grid. Older grandfathered net metering agreements may provide different benefits than today’s Net Billing structure. This information is especially important if you plan to add solar panels or battery storage after purchasing the home. Future modifications should be evaluated carefully to avoid unnecessarily affecting an existing grandfathered agreement.
4. Confirm the Original PTO Date
Permission to Operate is the date the utility officially authorized the solar system to operate. For qualifying NEM 1.0 and NEM 2.0 systems, grandfathering is generally tied to a 20-year period beginning with the original PTO date. Two homes may both have NEM 2.0 solar but have very different amounts of time remaining under that agreement. Ask the seller to obtain the PTO information from the utility rather than relying only on the approximate installation date.
5. Identify the Solar Panels and System Age
Find out what equipment is installed and how old it is. Important information includes the panel manufacturer and model, panel wattage, number of panels, approximate installation date, and remaining manufacturer warranty. Also determine whether the property has more than one solar system. Some homeowners install additional panels years later as their electricity consumption increases, creating systems with different equipment, ages, warranties, and inverters. Knowing exactly what’s installed provides a clearer picture of the system you’re purchasing.
6. Check the Inverter
The inverter is one of the most important components of a solar energy system because it converts the electricity produced by the panels into power the home can use. Determine the inverter manufacturer, model, installation date, warranty status, and repair or replacement history. This is especially important with older solar systems. Solar panels may continue producing for many years while an older inverter could be approaching the end of its warranty or useful service life. Understanding its age and condition can help you anticipate potential repair expenses.
7. Make Sure Solar Monitoring Works
Monitoring provides valuable information about whether the system is operating correctly. Many solar systems use platforms such as SolarEdge or Enphase. Ideally, the seller should be able to provide access to historical production data so you can review performance over several months or years. If monitoring isn’t working, the solar system may still be producing. The issue could simply involve a lost internet or cellular connection or an improperly configured monitoring platform. Monitoring access should also be transferred to the new homeowner whenever possible. Once you own the property, reliable monitoring can help you identify production problems before they affect your electricity bill for months.
8. Verify That the System Is Producing Properly
A solar system being turned on doesn’t necessarily mean it’s performing as expected. Review historical monitoring data for unexplained drops in production, offline equipment, unusual patterns, or significant changes from year to year. Previous utility bills can also help show how much electricity the system exported and how much power the home continued purchasing from the grid. Production should be evaluated based on the system’s size, age, roof orientation, shading, equipment, and seasonal conditions. For older systems without usable monitoring, a qualified solar technician may need to perform additional testing to determine whether the equipment appears to be operating properly.
9. Review Batteries, Warranties, and Installer Support
If battery storage is installed, identify the manufacturer, model, battery capacity, installation date, warranty, monitoring system, and whether the system provides partial- or whole-home backup. Also determine whether solar and battery warranties transfer when the home is sold. Manufacturer equipment warranties may have procedures for transferring ownership. Workmanship warranties are typically provided by the original installer and may be handled differently. It’s also worth determining whether the original solar company is still in business. If the installer has closed, manufacturer warranties may remain valid, but you’ll need another qualified solar contractor willing to service the existing equipment.
10. Have the Solar System Professionally Inspected
Whenever possible, schedule a professional solar inspection before closing. A traditional home inspection may identify obvious concerns, but solar is a specialized electrical system. A dedicated inspection can evaluate equipment condition, wiring, conduit, inverter performance, monitoring, roof attachment areas, electrical workmanship, and visible signs that repairs may be necessary. An inspection can also document exactly what equipment is installed and give you an opportunity to gather financing information, PTO records, net metering details, warranties, and production history before completing the purchase. If problems are discovered, they may be easier to address with the seller before closing than after the home becomes yours.
Make Sure Solar Is an Asset at Your New Palm Desert Home
Buying a home with solar panels can provide years of value, but that value depends on much more than the number of panels visible on the roof. A paid-off system with a favorable grandfathered net metering agreement can be very different from a property with aging equipment or a long-term third-party solar agreement. Before buying, understand the ownership and financing, verify the net metering agreement and PTO date, identify the equipment, review production and monitoring, confirm warranties, and have the system professionally inspected whenever possible.
At Supreme Solar & Electric, we provide solar inspections, repairs, monitoring assistance, battery service, and electrical work for homeowners throughout Fresno and the Central Valley, including systems installed by other contractors and systems whose original installer is no longer in business. If you’re considering buying a home with solar, our team can inspect the existing system and help you better understand its condition before you close.
Contact Supreme Solar & Electric to schedule a solar inspection or get help evaluating an existing solar system before purchasing your next home.