What should buyers and sellers know about solar panels when a Markham home sells?First confirm whether the panels are owned outright or tied to a lease or equipment agreement, since Ontario has allowed third-party ownership of net-metered systems since July 2022. A legacy microFIT contract does not transfer automatically; the seller starts the transfer with the IESO, and it can take weeks to months. Net metering requires an agreement with the utility. Also check the roof’s age, because replacing shingles means removing and reinstalling the panels.
Solar panels from the microFIT era and newer net-metered systems now appear on Markham resale listings. They can be an asset, as long as the paperwork is sorted out before closing.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, asks for the solar contracts early so buyers and sellers are not negotiating on closing week.
Owned, leased or financed?
| Arrangement | What to ask for |
|---|---|
| Owned outright | Invoices, warranties, permits |
| Leased or third-party owned | The equipment agreement, buyout terms and what happens on sale |
| Financed | Payout amount and whether a security interest is registered |
MicroFIT contracts
- The seller, as contract holder, starts the transfer with the IESO.
- The buyer completes it and sets up a generation account with the utility.
- Payments to the new owner start from the date the IESO consents, not the closing date.
- The process can take a few weeks to several months.
Net metering
Net metering lets owners use their own power and earn bill credits for the excess, which can carry forward up to 12 months. It requires an agreement with the utility. Buyers should confirm with Alectra how the arrangement continues after the change of ownership.
Selling a home with solar?
Michael John Lau can help you gather the contracts buyers will ask for.
Request a home evaluationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Roof age
Panels usually last longer than shingles. If the roof is near the end of its life, removing and reinstalling panels adds cost and coordination. Ask for the roof’s age and whether the installer offers removal and reinstallation.
In the agreement
Your lawyer can address the solar system, contracts and any payouts in the agreement of purchase and sale. Ultimately, the decision is yours. The goal is to make sure you have all the information before closing.
Clear paperwork turns solar panels into a selling point. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Does a microFIT contract transfer with the house?
Not automatically. The seller starts a transfer with the IESO, and the buyer completes it.
How long does a microFIT transfer take?
A few weeks to several months.
Can solar panels be leased in Ontario?
Yes. Third-party ownership of net-metered systems has been allowed since July 2022.
Do net metering credits carry over?
Yes, for up to 12 months.
What if the roof needs replacing?
The panels must be removed and reinstalled, which adds cost.
What documents should a seller provide?
Contracts, invoices, warranties and permits for the system.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. MicroFIT transfer steps are from EPCOR's microFIT transfer guidance (IESO process). Net metering and third-party ownership points are from an Ontario Federation of Agriculture fact sheet (2023). Confirm details with Alectra and the IESO. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
