Open solar permits at closing: how to find them before they kill your deal

Open solar permits are one of the most common and least expected closing complications on solar properties. They don't show up in UCC searches. They often don't appear until the title officer orders a municipal lien search or a full permit report — sometimes just days before closing. This guide explains what open permits are, how to find them early, and how to resolve them without blowing your timeline.

What an open permit is

When a solar company installs a system, it pulls a building permit with the local jurisdiction before starting work. The permit has two stages: issuance (the permit is approved and work may begin) and final inspection (a city or county inspector visits the property, verifies the installation meets code, and signs off). A closed permit has completed both stages. An open permit has not completed the second stage.

An open permit means, from the municipality's perspective, that work was begun but not officially approved. The jurisdiction may consider the installation to be in a state of non-compliance. It may restrict certain future work on the property. And when it surfaces during a real estate transaction, it typically needs to be resolved before close.

Why solar permits are so often left open

The solar installation boom of 2018–2022 created a massive permitting problem. Companies were installing systems as fast as they could hire crews. Final inspections require scheduling with the city, waiting for an available inspector, having someone present at the property, and addressing any code corrections — all of which take time and cost money that a company trying to hit monthly installation targets doesn't want to spend.

The result: thousands of systems were installed on permits that were pulled but never closed. The homeowner didn't know — the system works fine, their electricity bill is lower, and nobody ever told them the final inspection didn't happen. The open permit sits quietly in the building department records until a title search pulls it years later.

The problem intensified as companies went bankrupt. An installer that files for Chapter 11 is not scheduling final inspections on last year's permit backlog. Those open permits became permanent orphans.

How to find open permits before closing

Don't wait for the title company's permit search. Check early, before the transaction opens if possible.

County/city building department website: Most jurisdictions have made permit records publicly searchable by address. Go to the city or county building department website, navigate to permit search, and enter the property address. Look for any solar-related permits — typically filed under "electrical," "photovoltaic," or "solar." Check the status of each: "finaled," "closed," or "completed" is what you want. "Open," "issued," or "pending inspection" is a flag.

Call the building department: If the online record is unclear, a two-minute phone call to the permit desk will tell you exactly what's open on a given address. This is faster than most agents expect.

Municipal lien search: Order one early. In Florida this is standard practice on most transactions. In other states it may not be — request it specifically for any solar property. The municipal lien search typically captures open permits alongside code violations and unpaid utility assessments.

Resolution paths

Path 1: Schedule the final inspection

If the original installer is still operational, contact them and request they schedule and complete the final inspection. They have an ongoing obligation to close the permit they pulled. Most cooperate when contacted directly, though timelines vary by company and jurisdiction.

Path 2: Hire a licensed contractor to close the permit

If the original installer is out of business, a licensed solar electrical contractor in the jurisdiction can often take over the permit, review the installation, and schedule the final inspection. The cost is typically $500–$2,000 depending on the jurisdiction and the complexity of the installation. The seller should bear this cost.

Path 3: Permit resolution service

Several companies specialize in open permit resolution for real estate transactions. They handle the communication with the building department, arrange the inspection, and manage any required corrections. Useful when you're working with a jurisdiction you're unfamiliar with or when the seller needs the work handled without their involvement.

Path 4: Title exception

Some title companies will close with an open permit if the seller provides written indemnification and funds are held in escrow to cover resolution costs. This is a last resort and requires insurer approval — don't count on it being available.

Battery permits: a separate, often-missed issue

Battery storage systems added after the original solar installation require separate permits in most jurisdictions. A homeowner who added a Tesla Powerwall or Franklin battery in 2022 to an existing 2019 solar system has two permit events — the original solar permit and the battery permit. Both need to be closed.

Battery permits are frequently missed in permit searches because they're filed under different categories than the original solar permit — sometimes "electrical," sometimes "energy storage," sometimes "battery," depending on how the jurisdiction classifies them. Search specifically for any permit activity in the years after the original solar installation.

Timeline by jurisdiction

Final inspection scheduling time varies enormously by jurisdiction. In some suburban jurisdictions, inspectors are available within 3–5 business days of request. In major metro areas — Los Angeles, Phoenix, Tampa — scheduling a solar inspection during busy periods can take 2–4 weeks. And if the inspection reveals code corrections (outdated equipment, missing labeling, grounding issues), add another cycle.

Build two to four weeks of buffer into your closing timeline any time an open solar permit is identified. If the permit is from an out-of-business installer, add another week for contractor sourcing.