I'm Brian Cooper. California requires solar on most new homes, but how that solar is owned — leased, financed, or included — varies by builder and affects your costs and your future sale. Here's the breakdown.
Why new California homes have solar
California's building energy standards (Title 24) require solar on most new residential construction, which is why nearly every new home you tour will have panels.
Owned vs leased vs PPA
- Owned (included or purchased): the system is yours; simplest at resale and no monthly solar payment, though it's reflected in the home price.
- Financed: you own it but carry a loan; confirm the balance and payment.
- Lease / PPA: a third party owns the panels; you pay monthly and must transfer the agreement to a buyer when you sell, which can complicate resale.
Questions to ask
- Is the solar owned, financed, or leased/PPA?
- If leased/PPA, what are the monthly payment, escalator, and transfer terms?
- What's the system size and estimated production?
- Is a battery included or available?
Bring your own agent — it doesn't cost you more
The friendly sales associate at the a new community model home works for the builder. They're paid to protect the builder's interests and maximize the builder's price and margin. You deserve someone on your side.
In California, having your own buyer's agent at a new-construction community generally does not raise your price — builder marketing budgets anticipate buyer-agent participation. The one rule: I usually need to register with you on your first visit. If you tour and give your information before I'm named, some builders will not honor representation later.
Questions to ask the builder before you sign
- What's included as standard versus an upgrade on this floor plan?
- What incentives apply right now, and are they tied to your preferred lender?
- What is the exact Mello-Roos/CFD amount and HOA due on this specific lot?
- What's the realistic completion date, and what happens if it slips?
- What does the warranty cover, and for how long (workmanship, systems, structural)?
- Can I use my own lender and my own inspector?
- Which lots carry premiums, and why?
Solar and your true monthly cost
However the solar is structured, it affects your numbers. Owned solar may raise the price but eliminate a power-purchase payment; a lease or PPA adds a monthly cost and a transfer obligation at resale.
I fold the solar arrangement into your all-in monthly cost and flag any lease/PPA transfer terms before you commit. Confirm the specifics directly with the builder.
Frequently Asked Questions
Is solar required on new California homes?
Yes — California's Title 24 energy standards require solar on most new residential construction.
Is it better to own or lease solar?
Owned solar is generally simpler at resale and carries no monthly solar payment, though it's reflected in the price. Leases/PPAs must be transferred to a buyer. Confirm terms with the builder.
What is a solar PPA?
A power-purchase agreement where a third party owns the panels and you buy the power, usually with a monthly payment and escalator. It transfers to the next owner.
Does leased solar hurt resale?
It can complicate it, since the buyer must qualify for and assume the lease/PPA. Owned systems avoid that.
Is solar related to Mello-Roos?
No — separate items. Mello-Roos is a community tax; amounts vary by parcel. Verify with the builder.
How does Brian help?
Brian confirms how the solar is owned and folds any payments into your true cost — and flags lease/PPA transfer issues for resale.
