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Arizona · A.R.S. §§44-1763, 44-1764Arizona solar on a home for sale: transfer restrictions and who approves them

Arizona regulates agreements to sell or lease a distributed energy generation system – a system over one kilowatt, such as rooftop solar or a battery, used mainly on site (A.R.S. §44-1761(2)). The agreement must disclose whether the warranty or maintenance obligations may be sold or transferred to a third party; must include a separately acknowledged disclosure of any restriction on the owner's or lessee's ability to modify or transfer the system, including whether a transfer needs a third party's review or approval; and must include a separately acknowledged disclosure of any restriction the agreement places on transferring the house itself, again saying whether approval is needed (§44-1763(A)(8)–(10)). When approval is required, the agreement must give the name, address and telephone number of the entity that approves, and provide for updating them (§44-1763(A)(9)–(10)). The utility that owns the grid the system is connected to must receive notice of any change in ownership of the system (§44-1764).

The rules

  1. 1. Covered systems (§44-1761(2))

    Over one kilowatt, mainly for on-site use – solar panels or batteries.

  2. 2. System transfer (§44-1763(A)(9))

    Agreement discloses transfer restrictions and who approves, with contact details.

  3. 3. House transfer (§44-1763(A)(10))

    Agreement discloses any restriction on selling the house and who approves.

  4. 4. Warranty (§44-1763(A)(8))

    Whether warranty and maintenance obligations can be transferred.

  5. 5. Utility notice (§44-1764)

    The utility must be notified of a change in the system's ownership.

What the TC can do

  • Ask the seller early whether the solar system is owned, financed or leased, and get the agreement.
  • Find the approval entity named in the agreement and start the transfer or payoff request right away.
  • Tell the buyer's lender about a lease or financing statement on the system, and ask the title company how it shows on title.
  • After closing, confirm the utility was notified of the new owner.

Questions about solar when selling in Arizona

Does an Arizona solar lease have to say how to transfer it when the house sells?

Yes. The agreement must include a separately acknowledged disclosure of any restriction on transferring the system or the house, and, if a third party must approve, that entity's name, address and telephone number (A.R.S. §44-1763(A)(9)–(10)).

Who must be told when solar ownership changes in Arizona?

The utility that owns or operates the grid the system is connected to must receive notice of any change in ownership of the system (A.R.S. §44-1764).

Related guides

Track the solar transfer approval and the utility notice as tasks on the deal in ClosingCode.

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Source: A.R.S. §§44-1761, 44-1763 and 44-1764 (azleg.gov, read October 29, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.