PROPERTY RIGHTS GUIDE
Discovering a solar lien on your house can be alarming — especially if you're trying to sell or refinance. This guide explains what solar liens are, how they got there, whether they're legitimate, and the step-by-step process to get them removed.
Updated March 2026 · Not legal advice · Our methodology
A solar lien on your house is typically a UCC-1 financing statement filed by a solar company or its financing partner to establish a security interest in the solar equipment on your property. While technically a lien on the equipment rather than your real estate, UCC filings appear on title searches and can complicate home sales, refinancing, and property transfers. In many cases, these liens can be removed — either by working with the solar company, paying off the obligation, or challenging the filing if it was improper.
When people refer to a "solar lien on their house," they're typically describing one of two things:
A UCC-1 filing is a public notice that a creditor (the solar company or its financing partner) has a security interest in specific collateral — in this case, the solar equipment. UCC-1 filings are governed by the Uniform Commercial Code and are filed with your state's Secretary of State office. They're designed to protect the solar company's interest in equipment they've financed, leased, or provided under a PPA. While technically attached to the equipment rather than your real property, they appear on title searches and can create confusion during home sales.
A more formal type of UCC filing specifically for items that have been attached to real property (fixtures). Solar panels mounted on a roof are generally considered fixtures. A fixture filing is recorded with both the Secretary of State and the county recorder, creating a more visible cloud on title. These are less common but more problematic when they occur.
For a comprehensive technical walkthrough, see our detailed UCC lien removal guide →
| Lien Type | Filed By | Attached To | Impact on Home Sale |
|---|---|---|---|
| UCC-1 (Standard) | Solar company or lender | Solar equipment | Moderate — appears on title search, may concern buyers/lenders |
| UCC Fixture Filing | Solar company or lender | Equipment as fixture on property | High — clearly clouds title, often must be resolved before closing |
| Mechanic's Lien | Installer (for unpaid work) | Real property | Very High — directly encumbers property, blocks clean title |
| Tax Lien (PACE) | PACE financing authority | Real property (property tax bill) | Very High — senior to mortgage, stays with property |
PACE loans are different: Property Assessed Clean Energy (PACE) financing creates a special assessment on your property tax bill. PACE liens are senior to your mortgage (meaning they get paid first) and transfer with the property regardless of ownership changes. If you have PACE financing, the removal process is significantly different and more complex than standard UCC liens. Consult with a real estate attorney familiar with PACE in your state.
Solar liens are typically created through one of these scenarios:
Key question: Did you know the lien was being filed? In many cases, homeowners discover solar liens only when they try to sell or refinance. If the UCC filing wasn't clearly disclosed during the sales process, this may be grounds for a consumer protection complaint or legal claim.
A solar lien on your house can create several practical problems:
Discovered a solar lien on your property? Get a free contract review to understand your options.
Determine who filed the lien — it may be the solar company, a financing partner, or a third-party lender. The UCC filing will identify the "secured party." This is who you need to contact.
Request a UCC-3 termination statement (the document that officially removes the UCC filing). If you've paid off the solar loan or bought out the lease, the company is generally required to file the termination. Put your request in writing.
If you're refinancing but not paying off the solar agreement, ask the lien holder for a subordination agreement — this moves the solar lien behind your new mortgage, which most lenders require.
After the company files the UCC-3 termination, verify removal by checking the Secretary of State database. This can take 2-4 weeks to process. Keep copies of all correspondence and the termination statement.
If the company refuses or ignores your request, file complaints with your state AG's office and the CFPB. Under most state UCC codes, a secured party must file a termination within 20 days of receiving a proper demand after the obligation is satisfied. Failure to do so may expose them to liability.
If you're trying to sell your home and a solar lien is complicating the process, you have several options:
Complete guide to selling a home with solar →
If the solar company refuses to remove a lien that should be terminated, you have legal recourse:
Important: This guide provides general information about solar liens. It is not legal advice, and SolarPanelExit.com is not a law firm. We do not advise homeowners to stop making payments or breach contractual obligations. Results vary by individual situation. Consult a qualified attorney for advice specific to your lien situation.
Get a free contract review. We'll help you understand the lien on your property and what options you have.
A solar lien is typically a UCC-1 financing statement filed by a solar company or lender to establish a security interest in the solar equipment on your property. While technically attached to the equipment rather than your real estate, it appears on title searches and can complicate home sales and refinancing. The lien protects the solar company's ownership interest in equipment they've financed or leased to you.
Yes, but the lien must be addressed during the sale. Options include transferring the solar agreement to the buyer, buying out the agreement to have the lien removed, negotiating with the title company, or offering a seller credit. The approach depends on your specific agreement terms, the buyer's willingness, and your state's requirements. Selling with solar guide →
Contact the lien holder (identified on the UCC filing) and request a UCC-3 termination statement. If you've paid off the obligation, they're generally required to file the termination within 20 days of a proper demand. If they refuse, file complaints with your state AG and CFPB, or hire an attorney to compel removal. For detailed steps, see our UCC lien removal guide →
A UCC filing itself doesn't typically appear on your personal credit report. However, if the underlying solar obligation becomes delinquent (missed payments on a solar loan or lease), that delinquency can affect your credit. Additionally, if a lien leads to collection actions, those can impact your credit score. The lien's main practical effect is on property transactions rather than personal credit.
No. A standard solar lien (UCC-1 filing) is a security interest in the solar equipment, not in your real property. A mortgage lien is a security interest in your real property (the house and land). Solar UCC liens are generally subordinate to (lower priority than) your mortgage. However, PACE solar liens are attached to your property taxes and may take priority over your mortgage, which is why they can be particularly problematic.
The right to file a UCC-1 is typically buried in the terms of your solar agreement. If you signed a lease, PPA, or financed purchase, you may have authorized the filing without realizing it. However, if the lien wasn't adequately disclosed during the sales process, this may constitute a violation of consumer protection laws or disclosure requirements. Review your contract for UCC filing language and consult with a consumer protection attorney if you believe it wasn't properly disclosed.
If the obligation is satisfied (loan paid off, lease ended), removal should be free — the company is required to file a UCC-3 termination at their expense. If you need to buy out a lease or loan to trigger removal, that cost depends on your agreement's buyout terms. If you need legal help to compel removal, attorney costs typically range from $500-$2,500 for straightforward cases. A quiet title action can cost $1,500-$5,000.
Usually, yes, but you may need a subordination agreement from the solar lien holder. This document tells the new mortgage lender that the solar lien is subordinate to (lower priority than) the new mortgage. Some solar companies provide subordination letters routinely; others require a formal request. Your mortgage lender and title company can advise on what's needed. Start the subordination request early in the refinancing process to avoid delays.
Start with a free contract review. We'll help you understand the lien and your removal options.
Disclaimer: This guide provides general information about solar liens. It is not legal advice, and SolarPanelExit.com is not a law firm. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.