On this page
The answer
Checked October 21, 2026: You generally have two choices: pay the solar loan off from the sale proceeds, or have the buyer assume it if your lender allows it.[1] GoodLeap and Dividend allow assumption only if the buyer applies and qualifies;[2][3] Solar Servicing, which services Mosaic loans,[10] says it does not offer loan transfers and suggests a payoff.[4] After payoff, the lender must file a UCC termination within one month, or within 20 days of your authenticated demand if sooner.[6] Start early: the buyer's mortgage lender will look for the solar debt and the filing.[5]
Our partner Solar Exit Group (Uso Holdings LLC) takes solar loans from any lender except Tesla. No cost to submit. Paid partner; it does not change our ratings.
Your options when you sell
| Option | How it works | Watch out for |
|---|---|---|
| Pay off at closing | Request a payoff quote dated to your closing date; the title or escrow company pays it from your proceeds. GoodLeap says most homeowners choose this.[2] | The payoff includes any dealer fee built into the principal and, if the 30% prepayment was never made, that amount too. |
| Buyer assumes the loan | The buyer applies and must qualify. GoodLeap says it may decline; if it does, the loan must be paid off in the sale.[2] Dividend says the full Incentive Investment payment must be satisfied before a transfer.[3] | The buyer can say no, and the lender can decline the buyer. |
| Lender does not allow transfers | Solar Servicing (Mosaic loans) says it does not offer loan transfers and suggests a payoff.[4] | Plan the payoff into your net proceeds from day one. |
| Lease or PPA instead of a loan | Different process: transfer or buyout of the contract. | See transferring a solar lease. |
What the buyer's mortgage lender checks
Fannie Mae tells lenders they are responsible for determining who owns the panels and how they are financed, so the mortgage keeps its first-lien position. Lenders may check the borrower's credit report for solar debt, ask for the loan documents and review the title report for related filings.[5]
Two Fannie Mae rules matter for your sale price:[5]
- Separately financed solar panels must not add value in the appraisal unless the documents show the panels cannot be repossessed if the financing defaults.
- If ownership is unclear, no value may be given to the panels unless a UCC personal property search shows no non-mortgage lender claims them as collateral.
In practice, a paid-off loan and a terminated filing give the appraiser and the buyer's lender the cleanest file. More on value: do solar panels add home value?
See if our partner Solar Exit Group can help. No cost to submit. Paid partner, disclosed.
Getting the UCC filing released
Solar lenders typically record a UCC-1 financing statement and a county fixture filing. GoodLeap says its filings are a lien on the solar equipment, not on the home, but that you will find the fixture filing in state and county records for your property.[2] The CFPB notes a UCC lien "can muddy the title" because some jurisdictions view it as applying to the whole property, so it may have to be released or subordinated.[1]
- Deadline. For consumer goods, the secured party must file a termination within one month after the debt is paid, or within 20 days of your authenticated demand if that is earlier. In other cases it must file or send one within 20 days of your authenticated demand.[6]
- Penalty. A secured party that fails to file or send a required termination can owe $500 in statutory damages, plus any actual damages.[7]
- Proof. Get the termination (often called a UCC-3) for both the state filing and the county fixture filing, and give copies to the title company.
Full walkthrough with state filing offices: solar panel UCC lien removal.
Selling with a solar loan, step by step
- Before you list, find your lender or servicer (lookup) and your loan agreement. Note whether it allows assumption.
- Get a payoff quote and work it into your net proceeds. Dividend asks you to give your closing date when you request a quote;[3] Solar Servicing provides payoff letters dated up to 10 calendar days ahead by email;[4] GoodLeap generates a payoff quote in its app.[2]
- Disclose the loan and filing to your agent and the title company early, with the filing numbers if you have them.
- Decide payoff or assumption once you have a buyer. If the buyer wants to assume, start the lender's application right away.
- Order an updated payoff for the actual closing date; the title or escrow company pays it at closing.
- After closing, send the lender a written, signed demand for the UCC termination and keep a copy.[6]
- Confirm the termination shows in the state and county records, and keep the payoff letter.
Tax credit, dealer fees and disputes
- Tax credit. The IRS says the Residential Clean Energy Credit applies to property installed through December 31, 2025.[8] What selling does to a credit you claimed: solar tax credit when selling your house.
- The payoff may be bigger than you expect. Dealer fees are part of the principal (how to find yours), and if the 30% prepayment was never made, that amount is still in the balance (payoff math).
- If the system never worked or the installer misled you, raise that with the loan holder in writing before closing. The FTC Holder Rule notice may let you raise the seller's misconduct against the holder.[9] See the Holder Rule guide.
We do not advise homeowners to stop making payments or breach contractual obligations. Keep the solar loan current through closing. A missed payment can delay the payoff, add fees and show up on the credit report your next lender pulls.
Disclosure: We may earn compensation when you contact companies through our site. This does not change our ratings. Our partner for solar loans (all lenders except Tesla) and Sunnova PPAs is Uso Holdings LLC d/b/a Solar Exit Group; see authorized partners. SolarPanelExit.com is not a lender, law firm or credit counselor and is not affiliated with any lender named on this page.
Frequently asked questions
Can I sell my house if I have a solar loan?
Yes. You usually pay the solar loan off from the sale proceeds at closing, or the buyer assumes it if the lender allows and the buyer qualifies.
Are solar loans transferable to the buyer?
Some are. GoodLeap and Dividend allow assumption if the buyer applies and qualifies. Solar Servicing, which services Mosaic loans, says it does not offer loan transfers and suggests a payoff.
Is a solar loan a lien on my house?
Lenders record a UCC-1 and often a county fixture filing. GoodLeap and Solar Servicing say these cover the solar equipment, not the home, but the CFPB notes a UCC lien can muddy the title, so title companies usually want it released or subordinated.
How long does the lender have to release the UCC filing after payoff?
Under UCC Section 9-513, for consumer goods, within one month after payoff, or within 20 days of your authenticated demand if sooner. A secured party that fails to can owe $500 in statutory damages plus actual damages.
Do solar panels with a loan add value to my house?
Under Fannie Mae's rules, separately financed panels must not add value in the appraisal unless the documents show they cannot be repossessed on default. A paid-off loan and a released filing avoid that problem.
What if the buyer does not want to take over my solar loan?
Then plan to pay it off at closing from your proceeds. Request a payoff quote dated to your closing date early so it is built into your net proceeds.
Still paying a solar loan (not Tesla) or a Sunnova PPA? See if our partner Solar Exit Group can help. No cost to submit. Paid partner; it does not change our ratings.
Sources
Checked October 21, 2026. Lender policies, servicer details and contact information change; confirm on the linked primary source and in your own loan agreement before you act.
- RegulatorCFPB, Issue Spotlight: Solar Financing (August 7, 2024)
- LenderGoodLeap, FAQ (UCC-1 and fixture filing, payoff quote, home sale, hardship)
- LenderDividend Finance, Selling your home with solar (payoff, assumption, Incentive Investment)
- ServicerSolar Servicing LLC (Mosaic loans), Homeowner FAQs (loan transfers, payoff letters, UCC-1)
- AgencyFannie Mae Selling Guide B2-3-04, Special Property Eligibility Considerations: Properties with Solar Panels
- StatuteUCC Section 9-513, Termination statement (Cornell LII)
- StatuteUCC Section 9-625, Remedies for secured party's failure to comply, incl. $500 statutory damages (Cornell LII)
- RegulatorIRS, Residential Clean Energy Credit
- Regulation16 CFR Part 433, FTC Holder Rule: definitions (433.1) and required notice (433.2), eCFR
- CompanyForbright Bank, Solar Mosaic’s loan servicing operations transition to Solar Servicing (September 22, 2025)
Disclaimer: This page is not legal advice. It is general information, not legal, tax or financial advice, and it does not create an attorney-client relationship. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. Consult a qualified attorney licensed in your state before acting on your solar contract or loan. We may earn compensation when you contact companies through our site. This does not change our ratings. Solar Exit Group (Uso Holdings LLC) is a paid partner; see authorized partners. See our Ownership Disclosure, Advertiser Disclosure and Methodology.