Buckle Up: Why Solar Transactions Require More Time, More Documents, and Early Action
Buckle Up: Why Solar Transactions Require More Time, More Documents, and Early Action
The revised Arizona REALTORS® Solar Addendum gives agents and clients a clearer roadmap, but it cannot make a slow transfer process move faster.
By Dennis R. Riccio, President, Central Arizona Association of REALTORS®
THE PRACTICAL REALITY A buyer can qualify for the home mortgage and still fail to qualify for the separate solar lease or loan. |
Solar-equipped homes are not a large share of the Rim Country market. But when a property does have solar, the system can introduce a second transaction inside the real estate transaction. That second transaction may involve a solar lender or lessor, a utility company, escrow, the buyer’s mortgage lender, warranties, payoff demands, transfer fees, and a separate buyer-qualification process.
Arizona REALTORS® revised its Solar Addendum in November 2025 after receiving feedback about these recurring complications. The new form does not suggest that every solar transaction will be delayed. It does, however, place the parties on unmistakable notice that transfer work takes time and must begin immediately.
The revised addendum opens with a conspicuous instruction that did not appear in the same form in the February 2022 version:
Excerpt from Arizona REALTORS® Solar Addendum, updated November 2025. Sample form shown for member education.
That warning captures the central lesson for REALTORS®: do not select a routine closing date and assume the solar transfer will fit inside it. The seller should initiate the process upon contract acceptance, the buyer should promptly apply and respond to document requests, and the closing date should reflect the actual transfer procedure.
A financed or leased solar system may require the buyer to satisfy two different decision-makers. Approval by one does not guarantee approval by the other.
Approval | What is evaluated | What can go wrong |
|---|---|---|
Mortgage loan | Income, assets, credit, appraisal, debt obligations, property and lender requirements. | The solar payment may affect debt-to-income calculations or lender approval. |
Solar assumption | The solar company’s credit requirements, account status, transfer documents, fees and existing agreement. | The buyer may be declined, additional money may be required, or approval may arrive too late. |
The mortgage and solar obligations may have different creditors, standards, documents, and timelines.
At CAAR’s September 2025 Business Breakfast, Arizona REALTORS® General Counsel Aaron Green previewed the overhaul while the form was still in development. The final form reflects the concerns he identified and adds several practical safeguards.
Delay warning | The form now warns that even an outright-owned system may take significant time to transfer and instructs the parties to choose a realistic closing date. |
Account status | For a lease or unpaid loan, the seller must disclose whether the obligation is current. A delinquency can prevent or complicate transfer. |
Final terms check | The buyer is specifically advised to review the assumption-approval documents and verify that the terms remain the same. |
Payoff at closing | The instructions now expressly address a system that will be paid in full at and as a condition of closing. |
Broader fees | The fee provision now addresses lessor, utility, third-party, document-processing, and warranty-transfer charges and requires the parties to allocate payment. |
Comparison highlights are based on the November 2025 form, the prior February 2022 form, and Aaron Green’s September 2025 presentation recap.
The buyer’s initial review of the disclosed solar agreement is not necessarily the end of the inquiry. As Aaron explained, the final assumption approval may arrive later in escrow. The revised form advises the buyer to confirm that the final terms have remained the same.
Agents should not interpret this provision as permission to provide legal, lending, tax, or solar-system advice. The form expressly recognizes that those subjects are beyond a broker’s expertise. The REALTOR®’s role is to identify the issue, insist on early action, track deadlines, obtain documentation, and direct the parties to the appropriate professionals.
1 BEFORE LISTING Seller gathers the agreement, recent statement, payoff or buyout information, warranty documents, utility information, and transfer instructions. | 2 UPON ACCEPTANCE Seller contacts the solar company immediately. Buyer receives documents and promptly submits any required assumption application. | 3 DURING ESCROW Buyer reviews cost, escalators, remaining term, production, roof, insurance, fees and lender impact. Agents track the transfer actively. | 4 BEFORE CLOSING Buyer compares final assumption terms, escrow confirms payoff or transfer requirements, utilities remain on, and all approvals are documented. |
Start before the property is under contract when possible. A 30-day escrow leaves little room for a late solar application.
CAAR MEMBER TAKEAWAY Solar may be uncommon in Rim Country, but it is too complicated to learn for the first time in the middle of an escrow. |
When Aaron Green previewed the revised form, he described the solar process as a journey and advised agents to help clients understand that they may need to ‘buckle up.’ The goal is not to discourage solar or alarm clients. It is to recognize the additional transaction, begin it promptly, and avoid discovering an unqualified buyer, delinquent account, changed assumption term, unexpected fee, or delayed approval days before closing.
SEP 16 11:30 A.M. – 2:30 P.M. | Understanding Solar in a Real Estate Transaction Three-hour Disclosure CE Class | Instructor: Tara Rutkowski Learn how to recognize ownership and financing arrangements, use the revised addendum, manage assumption and transfer problems, and protect the closing timeline. Visit caaraz.com/education for registration information and updates. |
CAAR encourages members to attend so that the next solar-equipped property becomes a manageable transaction rather than a last-minute crisis.
Arizona REALTORS® Solar Addendum, updated November 2025; Arizona REALTORS® Solar Addendum, February 2022; CAAR recap of Aaron Green’s September 3, 2025 presentation; Arizona REALTORS® Residential Resale Real Estate Purchase Contract, updated February 2026; CAAR 2026 education schedule.
This article is intended for general member education and is not legal, tax, lending, insurance, utility, or solar-system advice. Members should use current Arizona REALTORS® forms, follow brokerage policy, consult their designated broker, and direct clients to qualified professionals regarding their specific transaction.
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