Selling a Phoenix Home With Leased Solar, Step‑by‑Step

Thinking about selling your Phoenix home but the solar panels are leased? You are not alone. Leased or third-party-owned systems are common across the Valley, and with the right plan you can move from listing to closing without surprises. In this guide, you will learn exactly what to disclose, which path to choose, and how to manage lenders, title, and timing in Phoenix. Let’s dive in.

What leased solar means for your sale

A leased or third-party-owned system adds an extra step to your sale. Most Phoenix sellers resolve it in one of three ways: the buyer assumes the lease, you prepay or buy out the lease, or you remove the system before closing. Each option affects your timeline, costs, and buyer interest.

• Buyer assumes the lease: expands buyer options if the terms are attractive. The buyer must qualify with the solar provider, and the lender will review the lease payment for debt-to-income.
• Seller buyout or prepay: can streamline underwriting and appraisal, and may improve marketability. Expect a written payoff and recorded release on title.
• Removal: sometimes chosen if a buyer will not assume and you do not want to buy out. Plan for removal and roof repair before closing.

Phoenix disclosure and required forms

Arizona law requires you to disclose if the property has solar energy devices that are leased and to provide the leasing company’s name and phone number on the state disclosure affidavit. Review A.R.S. §33-422 and complete this early to avoid delays. See the statute on seller disclosure of leased solar devices at the state level for details: A.R.S. §33-422.

Arizona REALTORS also announced revised forms, including a Solar Addendum, with a November 2025 release. Your agent will source the correct forms and guide you on how to present lease terms to buyers. You can read the announcement here: Arizona REALTORS forms update including Solar Addendum.

Step-by-step plan for Phoenix sellers

Pre-listing: get organized

Do these before you go live.

• Gather your solar documents. Collect the lease or PPA, current statement, contract start and end dates, and any warranties. If you cannot locate them, ask your provider’s customer support for copies. Many providers outline process details in their customer FAQs, like Sunrun’s FAQ page.
• Request a written payoff and transfer instructions. Ask the provider for the prepay and buyout numbers, transfer fees, required forms, and estimated timelines in writing.
• Ask title to search for UCC or fixture filings. Solar companies often file a UCC-1 financing statement to secure equipment. Title needs to clear, subordinate, or insure around it. Learn what that filing is here: UCC-1 financing statement overview.
• Plan your disclosures and buyer packet. Complete the Arizona statutory disclosure and prepare a simple packet with the lease, fee schedule, payoff quote, and warranty/service info. Link provider contacts so buyers can review quickly. See the statutory requirement at A.R.S. §33-422.

While on market: set expectations

• MLS remarks should clearly state that the solar system is leased or third-party owned and that documents are available for review.
• Share a short FAQ for buyer agents: monthly payment, any escalator, contract end date, transfer fee, buyout option, maintenance and roof responsibilities, and whether a UCC filing exists.

Under contract: move fast on transfer

• Start the provider’s transfer process immediately. Most companies require forms from both parties and a buyer credit check if the lease will be assumed. For general steps, see Sunrun’s FAQ.
• Loop in the buyer’s lender and appraiser. Provide the lease and payoff options early. FHA programs generally require the borrower to own the system for it to count as an eligible improvement, which affects buyers using FHA. Review FHA policy context in the HUD Handbook reference.
• Coordinate with title and escrow. Confirm whether title needs a payoff at closing or a recorded UCC termination or subordination, and what endorsements they will issue. Lender program notes on leased solar are summarized in conforming loan guidance overviews.
• If delays pop up, add remedies in writing. Options include a seller payoff at closing, a credit to the buyer, or a price adjustment if a transfer stalls.

Closing: three common scenarios

• Buyer assumes the lease. The buyer executes the assignment, the provider approves, and the lender accounts for the monthly payment in debt-to-income. Expect documentation from the provider at or before closing. See process notes in Sunrun’s FAQ.
• Seller prepays or buys out. You pay the provider’s quoted amount, then ensure a recorded UCC termination is delivered to title to avoid a cloud on title. Company filings discuss the need to record terminations, as noted in Sunrun’s 10-K reference.
• Seller removes the system. Schedule removal and roof repair before close of escrow. Your listing should outline completion and inspection timing.

Post-closing: confirm releases

• Verify the account transfer is reflected in the provider portal, confirm the utility interconnection or account update, and keep the recorded UCC termination for your records.

Lender, appraisal, and title realities

• Appraised value. Mortgage programs often do not add value for leased or third-party-owned systems. This is true across many lender guides and can impact appraisal outcomes.
• Underwriting. Lenders usually count the monthly lease payment in the buyer’s debt-to-income unless the agreement is structured in very specific ways. See lender program summaries for leased solar in conforming loan guidance and FHA context in the HUD Handbook reference.
• Title encumbrances. UCC-1 and fixture filings are common with leased solar and will appear on title. Your title company will ask for a termination, subordination, or a specific endorsement. Review how a UCC-1 works here: UCC-1 financing statement overview.

Why APS vs SRP matters

Phoenix-area homes are typically served by APS or SRP. Arizona shifted from full net metering toward export credit models, and APS uses a Resource Comparison Proxy approach with time-based rules for credit levels. These export policies affect projected savings for the next owner. Share your system’s production history and utility details so buyers can model savings. Read background on Arizona’s export credit changes in this report on the APS rate-case settlement and solar export framework.

Costs to budget for

• Provider fees: transfer or assumption fees and any early termination charges.
• Buyout or prepay: varies by contract and timing.
• Title and recording: UCC terminations, subordinations, and endorsements.
• Removal and roof repair: if you choose to remove the system.
• Potential price concessions: if a buyer will not assume and the seller will not buy out. Lender and title expectations are summarized in conforming loan guidance.

Risk checks before you choose a path

• Provider timelines can stretch. Transfers and buyouts often take multiple weeks, so start the provider process as soon as you open escrow. See typical process notes in Sunrun’s FAQ.
• Provider stability. Some national providers have experienced restructurings that can affect servicing or response times, which may slow transfers. Recent coverage of industry changes includes this report on Sunnova’s asset sale and restructuring.

What to include in your solar packet

Share a clean, complete packet on day one.

• Solar contract and any addenda, plus customer account or portal info. See common customer resources in Sunrun’s FAQ.
• Current statement with monthly payment, escalator, start and end dates, and a written payoff or prepay quote.
• Any recorded UCC-1 or fixture filing found by title. Learn what it is here: UCC-1 financing statement overview.
• Permit and interconnection approval from the city or county and your utility.
• Warranty and maintenance coverage summary.
• Provider transfer instructions and team contacts.

Work with a local team you trust

Selling a Phoenix home with leased solar is very doable when you prepare early, present clear options, and keep title, the lender, and the provider in sync. If you want a calm, well-managed sale with a high-touch strategy, our family team is ready to help you plan the best path for your property and buyer pool. Connect with The Hoods Real Estate Team to start your tailored selling plan.

FAQs

How do I disclose leased solar in Arizona?

• Arizona law requires you to disclose leased solar devices and provide the leasing company’s name and phone number on the state disclosure affidavit. See A.R.S. §33-422.

Can a Phoenix buyer assume my solar lease with FHA financing?

• Often yes, but the buyer must meet the provider’s requirements and the lender must approve. FHA guidance treats owned systems differently than leased, so the lender may set conditions. Review the HUD policy context.

How long do solar lease transfers take in Phoenix?

• Provider timelines vary and can take multiple weeks, so start immediately after opening escrow. See typical steps in provider FAQs like Sunrun’s.

Will leased panels increase my home’s appraised value?

• Many mortgage programs do not add value for third-party-owned systems, and lenders typically include the lease payment in debt-to-income. See conforming loan guidance summaries.

What if a UCC filing for my solar shows up on title?

• Title will likely require a termination, subordination, or specific endorsement. Ask your provider for the recorded UCC termination after payoff. Learn what a UCC-1 is here: UCC-1 overview.

Do APS or SRP export credits transfer to the buyer?

• Export credit frameworks are set by the utility and depend on interconnection dates and current programs. Share production history and utility details so buyers can model savings. Get background on Arizona’s export approach in this APS rate-case report.