You Thought You Were Saving the Planet. You Actually Mortgaged Your Roof.
I got a call from a client in Arizona yesterday. He had a cash offer on his house. $650,000. Closing in 10 days. Then the Title Company called. "We found a cloud on the title. A UCC-1 Financing Statement from 'SunRunNow LLC'. We can't issue title insurance until it's cleared."
The client was confused. "But I didn't take a loan! It was a Power Purchase Agreement (PPA). They said it was 'free installation'!" That was the lie. In the fine print of that iPad contract you signed in 2023, you gave the solar company the right to file a lien on your property fixtures. Now, the buyer's bank refuses to lend on the house because they don't want to be in "Second Position" behind a solar company. The Ransom: The solar company demands a $42,000 buyout to remove the panels and the lien. The deal is dead.
Here is why the "Solar Lease" is the asbestos of 2026 real estate.
1. The "UCC-1" Silent Killer
Solar companies don't call it a lien. They call it a "Notice of Fixture Filing." Legally, it functions like a lien. It tells the world: "This homeowner owes us money for 20 more years."
- The Problem: When you try to sell, the buyer sees this debt.
- The 2026 Buyer: Buyers today are savvy. They know solar technology improves every year. They do not want to inherit your 4-year-old panels with a 20-year payment plan that escalates by 3% annually.
- The Standstill: The buyer says "Pay it off." You say "I don't have $40k." The house sits on the market for 100 days.
2. The "Refinance" Block
Even if you aren't selling, you are trapped. Want to refinance your mortgage to get a lower rate? Your bank will deny you. Why? Because the Solar Lien often technically claims "First Position" on the roof. Fannie Mae and Freddie Mac require the mortgage to be the only primary lien. You have to ask the Solar Company to do a "Subordination." Good luck. Their customer support is an AI bot that puts you on hold for 6 weeks. Meanwhile, your rate lock expires.
3. The "Roof Repair" Catch-22
It gets worse. Your roof starts leaking in 2026. You call a roofer. Roofer: "I can't touch those panels. You void the warranty. Call the solar company to remove them first." Solar Company: "Sure. That will be $3,000 to take them down and $3,000 to put them back up." You are now paying $6,000 just for the privilege of fixing your own roof. If you refuse? The leak rots your attic. The asset value plummets.
Comparison: Lease (PPA) vs. Loan vs. Cash
If you haven't installed yet, read this. If you have, cry.
| Feature | Cash Purchase | Solar Loan | Solar Lease / PPA |
|---|---|---|---|
| Ownership | You | You | Solar Company |
| Lien Type | None | UCC-1 (Usually) | UCC-1 (Always) |
| Sale Impact | Adds Value | Neutral (Payoff) | Toxic (Must Transfer) |
| Tax Credit | You keep it | You keep it | They keep it |
The Checklist: How to Remove the Lien
If you are selling, do not wait for the Title Company to find this.
- Check Your County Recorder:
- Search your address online. Look for "UCC Financing Statement."
- If you see it, you have a problem.
- Request a "Temporary Lift" (Refi only):
- If refinancing, ask for a "Subordination Agreement."
- Warning: They charge a $500 "Processing Fee."
- The "Buyout" Negotiation:
- If selling, read the contract. Look for the "Fair Market Value" buyout clause.
- Do not pay the full contract value.
- Hire a specialized attorney to argue that the depreciated value of the 4-year-old panels is only $15,000, not the $40,000 "future rent" they are demanding.