Environmental

What is 'solar panel disclosure' requirement in Hawaii real estate?

AA. Hawaii requires sellers to disclose whether solar panels generate enough energy for the entire home
BB. Sellers should disclose whether solar systems are owned outright or subject to a lease or PPA, which can affect the buyer's obligations and financing✓ Correct
CC. Solar panel disclosures are only required for commercial properties in Hawaii
DD. No solar panel disclosure is required because all Hawaii properties benefit from solar energy

Explanation

Solar panel ownership structure is critical to disclose in Hawaii. If solar panels are owned outright, they convey with the property. If subject to a lease or Power Purchase Agreement (PPA), the buyer must assume the contract (typically 20 years), which can affect financing eligibility and monthly cash flow. Hawaii has the highest rooftop solar penetration rate in the US.

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