buy + sellsolar + electrificationupdated for 2026boyenga team at compass
The Solar Lab
Buying or selling a home with solar? See what transfers with the house (net metering, a lease or a PPA), how lenders treat each, what changed for taxes in 2026 and the electrification rules that come with it.
Solar checkerWhat transfersNet meteringElectrification
- legacy net metering20 yearsfrom hook-up, tied to the system
- new solar tariffApr 15, 2023applications on or after
- federal solar creditendedfor systems finished after 2025
- property tax exclusionends at saleper the Board of Equalization
solar checker
What comes with this system
Seven questions about the panels, the utility and the buyer’s loan. The list shows what transfers and what to check; the numbers show the years left on legacy net metering.
What to know about this system
the numbers
Years left use the year the system was connected; the utility’s permission-to-operate letter has the exact date.
General information from the CPUC, PG&E, the city utilities, Fannie Mae, the IRS and the Board of Equalization, not tax or legal advice. The contracts and the utility’s records control.
what transfers
What transfers, by ownership
How Fannie Mae treats solar panels in a home sale.
| panels | appraised value | debt-to-income | before closing |
|---|---|---|---|
| Owned outright | Can add value under standard appraisal rules | No effect | Warranties and paperwork go to the buyer |
| Owned, with a loan | Only if the lender can’t repossess the panels | The loan counts | Pay off or subordinate a fixture filing that ranks ahead of the mortgage |
| Leased | None | Payments count, unless production is guaranteed | Transfer through the provider, or pay off |
| PPA | None | Payments tied only to production may be left out | Transfer through the provider |
| PACE-financed | — | — | Must be paid in full at or before closing |
From Fannie Mae Selling Guide B2-3-04 (October 8, 2025). Other loan programs have their own rules.
net metering
Net metering, decoded
Which plan a system is on decides what its exports are worth, and the utility decides which plans exist.
before april 15, 2023PG&E
NEM 1.0 and 2.0
A 20-year legacy term from the date the system was connected. PG&E says the term is tied to the system, not the owner.
- A buyer gets the years left
- Adding 1 kW or 10% of capacity moves it to the Solar Billing Plan
- At year 20 it moves at the annual true-up
april 15, 2023 onPG&E
Net Billing Tariff (Solar Billing Plan)
Exports earn credits that change by hour, day and season, usually below the retail rate and sometimes above it on late-summer evenings.
- Systems connected by 2027 have credit values set for nine years, for the original customer
- The bonus export credit ($0.009/kWh for 2026 systems) isn’t available to buyers of a home with existing solar
- Nearly 70% of these customers had added batteries by the end of 2024
city utilitySanta Clara
Silicon Valley Power
Its own net metering (Schedule NM), open until customer generation reaches 5% of its peak demand; excess energy is paid at a yearly rate.
- SVP isn’t required to offer a successor plan after the cap
city utilityPalo Alto
Palo Alto Utilities
NEM 1 (retail-rate exports) filled its cap in 2017. NEM 2 exports are paid $0.0990 per kWh from July 1, 2026.
- That export rate can’t be combined with a time-of-use schedule
proposedSan Francisco
CleanPowerSF Solar Billing Plan
Up for approval in September 2026; if approved it starts with the May 2027 billing period.
- For systems applied for after April 2023 and systems 20 or more years old
since july 1, 2026San Mateo County
WestLight Energy
Peninsula Clean Energy now operates as WestLight Energy; rates, programs and rebates stayed the same.
- The new name started appearing on bills July 17, 2026
electrification
Electrification rules that come with a sale
What changes when appliances are replaced or new space is built.
- Bay Area Air District appliance rulesZero-NOx (in practice, electric) units for newly installed water heaters under 75,000 BTU/hr from January 1, 2027, furnaces from 2029 and larger water heaters from 2031. Working appliances don’t have to be replaced.
- 2025 Energy CodeEnforced since January 1, 2026: heat pumps for both space and water heating are the baseline for new homes, though equally efficient alternatives are allowed.
- A new detached ADUNeeds its own new solar unless an exception applies, and must be battery-ready unless its electric service is 125 amps or less. Attached ADUs count as additions and don’t need solar.
- The 2026 disclosuresThe electrical advisory flags panel capacity for solar, heat pumps and EV charging; sellers of single-family homes also disclose known local or state limits on replacing gas appliances.
- HOA solar rulesDeed or HOA restrictions that effectively prohibit or restrict solar are void; reasonable rules are allowed, and an HOA that doesn’t deny an application in writing within 45 days has approved it.
questions
Questions we hear
Does net metering transfer to the buyer?
On PG&E’s legacy plans, yes: PG&E ties the 20-year term to the system, not the owner, so the buyer gets the years left. On the Net Billing Tariff, the nine-year credit values are described as guaranteed to the original customer, so ask the utility.
What happens to a solar lease when the home sells?
The buyer takes it over through the provider or it’s paid off. For a Fannie Mae loan, leased panels add no appraised value and the payments usually count in the buyer’s debt-to-income.
Can I still get the federal solar tax credit?
Not for systems finished after December 31, 2025, per the IRS. California’s property tax exclusion covers systems completed before January 1, 2027, and ends when the home sells.
Do I have to replace my gas furnace or water heater?
Not if it works. The Bay Area Air District’s rules apply when new units are installed, starting with smaller water heaters in 2027.
sources
Sources
Utility, state, lender and federal sources behind this page, checked October 2026.
- CPUC: Net Billing TariffDecision D.22-12-056www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/customer-generation/nem-revisit/net-billing-tariff
- CPUC: Net energy meteringLegacy periods and battery datawww.cpuc.ca.gov/NEM
- PG&E: NEM billing FAQJanuary 2024www.pge.com/assets/pge/docs/account/billing-and-assistance/nem-billing-faq.pdf
- Fannie Mae Selling Guide B2-3-04Solar panels, dated October 8, 2025selling-guide.fanniemae.com/sel/b2-3-04/special-property-eligibility-considerations
- IRS: Form 5695 instructionsResidential clean energy creditwww.irs.gov/instructions/i5695
- Board of Equalization: Letter to Assessors 2024/031Solar new-construction exclusionwww.boe.ca.gov/proptaxes/pdf/lta24031.pdf
- California Energy Commission: 2025 Energy Code fact sheetSeptember 2024www.energy.ca.gov/sites/default/files/2024-09/2025_California_Energy_Code_Fact_Sheet_ada.pdf
- California Energy Commission: 2025 Energy Code ADU FAQSolar and battery-ready ruleswww.energy.ca.gov/programs-and-topics/programs/building-energy-efficiency-standards/energy-code-support-center-6/2025
- Bay Area Air District: building appliance rulesRules 9-4 and 9-6www.baaqmd.gov/community-health/building-appliances-rule-implementation
- Silicon Valley Power: Rate Schedule NM2026www.siliconvalleypower.com/home/showpublisheddocument/58854/639080506621200000
- City of Palo Alto Utilities: EEC-1 rateEffective July 1, 2026www.paloalto.gov/files/assets/public/v/7/utilities/rates-schedules-for-utilities/residential-utility-rates/e-eec-1_effective_2026-07-01.pdf
- Civil Code 714: Solar Rights ActCalifornia Legislative Informationleginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=714
more to learn
Keep going
- Buying a home with solarWhat transfers: net metering, leases and loan rules.
- Electricity providers by cityWho supplies power in each city we cover.
- Build LabADUs, SB 9 homes and lot splits.
- Inspection DecoderWhat common inspection findings mean.
- Insurance LabPolicies, deductibles and wildfire discounts.
- Disclosure DecoderEvery document in a California disclosure packet.
- Mortgage LabPoints, buydowns, ARMs and jumbo limits.
- Seller PlaybookSelling a home, step by step.
General information as of October 2026, not tax, legal or financial advice. Utility tariffs, contracts and loan programs change; the documents for the specific system control.
talk to a property nerd
Selling a home with solar?
We’ll pull the solar paperwork together early so the lease, loan or net metering details don’t hold up escrow. Commissions are negotiable, and we offer bundled services, so ask us what’s included.
