Is the Arizona sun powering your roof helping your bottom line when you sell in Tempe? If you are weighing solar or getting ready to list a home with panels, you are not alone. Many buyers love lower electric bills, but the details matter. In this guide, you will learn how ownership type, appraisals, SRP or APS rules, and documentation can influence price, days on market, and negotiations. Let’s dive in.
Solar and Tempe home value at a glance
Owned solar systems often support a sale price premium compared to similar homes without solar, especially when you can verify production and savings. Leased or third‑party systems can complicate a sale because a buyer must assume a contract or the seller must buy it out. Utility policies, like export credits and time‑of‑use structures, affect real savings and what buyers are willing to pay.
Owned vs. leased solar in Tempe
Owned systems: Why buyers pay more
When you own your panels, they are part of the real property and usually transfer with the home. Multiple research efforts, including work from Lawrence Berkeley National Laboratory, have found that owned residential systems tend to be associated with higher sale prices versus comparable non‑solar homes. In Tempe, that premium grows when the system is healthy, relatively new, and backed by clear documents that show proven production and savings.
Leased or PPA systems: Know the tradeoffs
With a lease or power‑purchase agreement, the solar company owns the equipment and you have a contract. At resale, a buyer must accept that contract or you must arrange a buyout or removal. These situations can reduce your buyer pool and may lead to price concessions if the terms are not attractive or easy to assume. Before you list, confirm transfer rules, any fees, the buyout price, and how your lender and the buyer’s lender will treat the contract.
PACE or assessment financing: Watch underwriting
Property‑assessed financing adds a repayment obligation to the property tax bill. Some mortgage programs and lenders consider these assessments a barrier unless addressed directly. If your Tempe home has any assessment or lien tied to solar, surface it early and work with the buyer’s lender to avoid surprises.
How appraisers value solar in Tempe
The approaches they use
- Sales comparison: The most common method. Appraisers compare recent sales of similar homes and adjust for whether solar is owned or leased, system size, and other features.
- Cost approach: Reflects the installed cost less depreciation when comparable sales are limited.
- Income approach: Estimates value based on expected energy savings. This is less common for single‑family homes but can be useful when savings data are clear.
What appraisers want to see
Appraisers rely on documents, not assumptions. Gather these ahead of time:
- Proof of ownership and any lien releases if you financed the system.
- System specs: size in kW, panel and inverter models, age, and installer.
- Permits and the utility’s permission to operate or interconnection approval.
- Production history: at least 12 months of actual kWh output.
- Warranties: panel, inverter, and workmanship, plus transfer terms.
- Pre‑ and post‑installation utility bills that show measurable savings.
How ownership shows up in comps
Owned systems are typically treated as an asset that can justify a premium when there are good comps. Leased systems are often treated as an encumbrance unless the lease is easily transferable at terms the market accepts. Clear MLS remarks and supporting documents help the appraiser make informed adjustments.
SRP vs. APS: Why your utility matters
What changes with the utility
Different Tempe homes are served by different utilities. Salt River Project serves much of Tempe, while some addresses may be in Arizona Public Service territory. Each utility’s export credits, interconnection rules, time‑of‑use windows, and demand charges shape actual savings. These policies also change from time to time, which affects payback and buyer confidence.
Key items to verify by address
- Interconnection status: Confirm permission to operate and any outstanding utility items.
- Export credit method: Understand how the utility credits exported kWh and at what rate.
- Rate plan history: Gather bills that show usage and production during specific TOU periods.
- Compliance and grandfathering: Confirm if the system is compliant with current rules or if any upgrades were required.
If you verify the utility details upfront, you can present real savings to buyers rather than estimates.
ROI and buyer demand in Tempe
What drives value
- System size and orientation: Well‑oriented, unshaded systems produce more and are worth more to buyers.
- Proven production: Actual kWh history carries more weight than a model or brochure.
- Local rate structure: Higher retail rates and less favorable export credits change payback math.
- Remaining life and warranties: Newer systems with active warranties are more attractive.
- Incentives already used: Buyers generally cannot re‑claim tax credits that were taken by the seller.
Batteries and add‑ons
If a battery is included, clarify what it does. In Tempe, batteries can help with time‑of‑use rate shifting or backup. They add complexity but can add value when their purpose and performance are documented.
Common negotiation scenarios
Owned solar with strong documentation
If you provide 12 to 36 months of production and utility bills, buyers can see real savings. In these cases, offers are more likely to reflect a premium, and appraisals have better support for adjustments.
Leased system with a transfer option
If the lease is transferable with reasonable terms, present the contract early and confirm the buyer’s lender will accept it. Some buyers will assume the lease if the payment is lower than expected bill savings. Others may ask for a price concession to offset the obligation.
Leased system with a required buyout
If the lease requires a buyout before transfer, get a current buyout quote. Some sellers choose to buy out the system before listing so it converts to owned. Others offer a credit at closing. Clear math and upfront disclosure keep these deals on track.
Utility rate changes during escrow
Utility policies can shift. If a rate or export credit update lands during your listing, give buyers updated information and, where possible, fresh usage and production summaries. Transparency maintains trust and reduces re‑negotiation risk.
Seller checklist: What to gather before you list
- Proof of ownership: invoice marked paid in full, and any lien release if financed.
- Financing status: loan balance or buyout terms if the system is not fully owned.
- System specs: size in kW, panel and inverter models, installation date, and installer.
- Permits and interconnection: city permits, final sign‑offs, and utility permission to operate.
- Production history: monthly and annual kWh reports for at least 12 months.
- Utility bills: pre‑ and post‑install statements to demonstrate savings.
- Warranties: manufacturer and installer warranties with transfer instructions.
- Maintenance records: inverter replacements, service calls, and cleaning logs.
- Roof info: age, warranty, and any repairs around penetrations.
- Any assessments: PACE or other liens, outstanding balances, and repayment terms.
Buyer checklist: Questions to ask before you offer
- Who owns the system, and are there any liens or loans?
- Is the system included in the sale price with clear title transfer at closing?
- Can the seller provide 12 to 36 months of production and utility bills?
- If leased, what are the transfer terms, monthly payment, escalator, and buyout price?
- Will your lender accept the lease or PACE assessment if present?
- Are warranties active and transferable, and has any equipment been replaced?
- Which utility serves the address, and how are exported kWh credited today?
Tips for a smoother Tempe sale
- Be specific in the MLS: list ownership status, system size, average annual production, warranty transferability, and whether solar is included in price.
- Upload production summaries: appraisers and buyers value documents they can review quickly.
- Confirm utility details by address: SRP and APS policies differ and can change.
- Loop in lenders early if there is a lease, PPA, or assessment: this avoids underwriting surprises.
The bottom line for Tempe homeowners
Owned solar, documented production, and clean paperwork can boost your sale price and expand your buyer pool. Leased or third‑party systems can still work, but you need to understand transfer rules and how lenders view the contract. In every case, utility policy and real bill data drive perceived value.
If you want a clear plan to price, position, and market your Tempe home with solar, I am here to help. I will gather the right documents, highlight real savings, and present your home with premium marketing to attract qualified buyers. Let’s talk strategy and timing so you can move with confidence.
Ready to get started? Reach out to Robyn Combs for a friendly, no‑pressure consultation.
FAQs
Do solar panels increase home value in Tempe?
- Owned systems often support a price premium compared to similar non‑solar homes when production and ownership are documented, while leased systems tend to have mixed or negative effects on price and days on market.
How do leased panels affect selling my Tempe home?
- Buyers must assume the lease or you must buy it out or remove it, which can reduce the buyer pool and may require a price concession unless the transfer terms are attractive and lender‑approved.
What documents do appraisers need for solar at resale?
- Proof of ownership, system specs, permits and permission to operate, at least 12 months of production, utility bills showing savings, and warranty transfer details help support value adjustments.
Why do SRP and APS policies matter for my sale?
- Export credits, time‑of‑use windows, and interconnection rules shape actual savings, which influences buyer demand and appraised value; verify the serving utility and current policy for the specific address.
Can I claim the solar tax credit when I buy a home with panels?
- Buyers generally cannot re‑claim federal or state tax credits that were already used by the seller, so focus on documented energy savings and remaining warranty value.
