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When it comes time to sell, panels can raise home values by 5% to 10%.The only problem? Many homeowners with solar don’t actually own their panels. Instead, they lease them. Leases can run up to 25 years and come with onerous monthly payments, annual increases, and hefty early-purchase prices — they’re a liability, not an asset.Owners who sign such deals often do so under the impression that if they sell their homes before their lease ends, their buyers will take over the payments. But the reality is more complicated: Buyers may struggle to qualify to assume a long-term liability on top of their mortgage, or simply refuse to take over a hefty contract they had no part in signing up for.As buyers gain ground in many parts of the country, real estate agents say solar leases have emerged as a frequent sticking point in negotiations that can end in sellers paying off their contracts early, often for tens of thousands of dollars, lest their buyers walk away.“When you go to sell the house, if you don't pay off this system, the buyer has to qualify not just for buying the house, but also for this lease,” said John Bulik, a real estate agent in the western suburbs of Denver. “It can knock out some potential buyers, and we see a lot of buyers not wanting to go through that hassle.”Read more: Seller's disclosure: How it affects home sellers and buyersResidential solar has exploded in popularity in the past two decades, spurred by a growing interest in green energy, high electricity prices, tax incentives, and technological advances that made panels cheaper and more efficient. Nationwide, around 8% of homes now have solar (in sunny states like Hawaii, California, and Arizona, that number is far higher), making panel-dotted roofs increasingly common in listing photos.While prices have come down over the years, solar is still a hefty investment: In 2025, Tesla put the cost of an average system at $21,900 to $26,400.Leasing removes those up-front costs and relieves homeowners of maintenance headaches associated with owning their panels outright. The tradeoff, in addition to potential home-sale complications, is that they often end up paying more and seeing their energy savings diminish over time due to common contract clauses that ratchet up payments each year.Despite the downsides, leases have been growing in popularity in recent years. As of mid-2024, around 36% of residential solar projects were leased or under a lease-like arrangement known as a power purchase agreement, up from 22% three years earlier, according to solar research firm Ohm Analytics.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.11 (-0.17%)Nasdaq23,515.39 -14.63 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX15.86 +0.02 (+0.13%)Gold4,595.40 -28.30 (-0.61%)Trending tickersBTC-USD Bitcoin USD 95,365.52 -44.16 (-0.05%)ETH-USD Ethereum USD 3,301.77 -5.25 (-0.16%)^GSPC S&P 500 6,940.01 -4.46 (-0.06%)APP AppLovin Corporation 568.76 -38.23 (-6.30%)SMCI Super Micro Computer, Inc. 32.64 +3.22 (+10.94%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.24 +2.67 (+16.11%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +8.99 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.42 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.96 (-9.65%)Most activeIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Inc. 12.16 -0.66 (-5.15%)NVDA NVIDIA Corporation 186.23 -0.76 (-0.41%)INTC Intel Corporation 46.96 -1.35 (-2.78%)BBAI BigBear.ai Holdings, Inc. 6.12 -0.05 (-0.81%)Top economic eventsEarnings eventsMy earnings eventsEarnings events