Short answer
Owned panels are part of the house and can add to its appraised value. Leased panels and power purchase agreements belong to a solar company: their value can't be counted in the appraisal, a lease payment usually counts in your debts, and the lender reviews the agreement before closing.
What are the ways solar panels can be owned?
- Owned: bought with cash, included in the price or paid off. They're part of the home.
- Separately financed: paid for with a solar loan, often recorded as a fixture filing (a UCC-1) in the land records.
- Leased or a power purchase agreement (PPA): owned by a solar company, which charges a monthly lease or a price per unit of power.
Do solar panels add to the appraised value?
Under Fannie Mae's guide, owned panels can contribute value like any other feature. Separately financed panels can add value only if they can't be repossessed for missing payments on the solar loan. The value of leased or PPA panels can't be included in the appraised value.
Does the solar payment count in my debts?
A separately financed solar loan counts in your debt-to-income ratio. A lease payment counts too, unless the lease sets a fixed payment for a set amount of power with a production guarantee. Payments under a PPA that are based only on the power produced can be left out.
What does the lender check on a lease or PPA?
- A copy of the lease or PPA
- That the home still has access to another source of electric power
- That the solar company is responsible for damage from installing, fixing or removing the panels
- What happens to the agreement if the lender ever has to foreclose
What about FHA loans?
FHA can insure a home with leased solar or a power purchase agreement only if the agreement doesn't restrict selling the home, such as requiring the solar company's approval of a buyer or putting a lien on the home. Ask for the agreement early so the lender can review it.
What should I ask the seller?
Ask whether the panels are owned, financed or leased, for a copy of any agreement, how much time is left, the monthly cost, and how the agreement transfers to a buyer or can be paid off. A recorded solar filing can show up in the title search, so raise it early. Some NH towns offer a property tax exemption for solar; see NH property taxes.
Sources
- Fannie Mae Selling Guide B2-3-04, Special Property Eligibility Considerations: solar panels (10/08/2025)
- HUD Handbook 4000.1, Update 18 (August 2026)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.