⚖️ Clearing Title: The Process of Purchasing Your Leased Solar System

If you have a solar lease or Power Purchase Agreement (PPA), buying out the system is often the best financial move, especially if you plan to sell your home soon.

1. Why Buy Out Your System?

Converting a liability (lease) into an asset (owned system).

• ✅ **Increased Resale Value:** Owning the system adds significant value to the home, whereas a lease often deters buyers or requires the buyer to assume the contract.
• ✅ **Better ROI:** After the buyout, you own the power generation free and clear, accelerating your overall financial return.
• **End of Escalation:** PPA payments often escalate (e.g., 2.9% annually), while a buyout eliminates all future escalator payments.

2. The Buyout Process

Start by reviewing your original contract documents.

• **Fair Market Value (FMV):** Some contracts allow a buyout at a pre-set price, while others require an appraisal to determine the Fair Market Value at the time of purchase.
• **Lender Coordination:** If selling the home, your solar provider will work with the escrow company to handle the payoff amount simultaneously with the closing.
• **Title Change:** Ensure the UCC-1 financing statement (liening the panels to the lender) is removed from your property title after the purchase is complete.

Timing the Buyout

The ideal time to buy out a leased system is just before listing your home for sale, as it instantly makes the property more appealing and valuable to potential buyers. 💡