With a solar loan, the homeowner is financing the purchase of the system, just like a car loan. Once the loan is fully paid off, they own the system outright and continue to benefit from the energy savings without any further payments.

During the loan period, they can still claim tax credits and incentives because they technically own the system—it's just being financed. If they sell the home before paying off the loan, they typically need to pay off the remaining balance or work with the lender to transfer the loan to the buyer (if allowed).

Manufacturer Warranty

• Covers defects in the panels themselves, usually for 20–25 years.

• Includes a performance guarantee, ensuring panels produce energy at a certain efficiency level over time (e.g., at least 80% of original output after 25 years).

1. Workmanship/Installation Warranty

   • Provided by the installer (solar company) and typically lasts 5–10 years.

   • Covers issues related to installation, such as faulty wiring, leaks from roof penetrations, or mounting problems.

2. Inverter Warranty

   • Inverters (which convert solar energy into usable electricity) usually have a separate warranty of 10–15 years, depending on the brand.

3. Battery Warranty (if applicable)

   • If the system includes a battery, it often comes with a warranty of 10 years or a cycle limit, ensuring it retains a certain percentage of capacity over time.

How This Affects Home Sales

• Warranties stay with the system, meaning they transfer to the new homeowner as long as the original terms allow it.

• It’s important to review warranty transfer policies, as some manufacturers require a transfer fee or registration update.

• If the system has existing issues, buyers may want to verify if the warranty still applies before closing.