• The solar provider owns the system
• The homeowner may not be eligible to claim the federal solar tax credit
• The agreement may include a third-party ownership interest, such as a UCC-1 filing
• Monthly solar payments are added to the borrower’s debt-to-income ratio
• Re-subordination requirements and combined loan-to-value limits can make refinancing impossible
Once signed, these agreements often restrict refinancing, resale, and future financing options for several years.
Before signing a solar lease or solar loan, it is important to understand whether solar can be structured as homeowner-owned solar without third-party ownership or liens.
If you recently signed an agreement, many solar contracts include a short cancellation window. A timely review may help identify title, lien, or refinancing risks before options become limited.
Owned solar can often be integrated directly into mortgage financing, including FHA solar programs, without creating separate liens or long-term contractual restrictions.
Only homeowner-owned, lien-free solar integrates cleanly with mortgage financing.
Third-party solar leases and subscriptions can introduce long-term contractual obligations, add recurring monthly payments to a borrower’s debt-to-income ratio, and create re-subordination or loan-to-value constraints that limit or prevent refinancing.
Once signed, these agreements can also complicate resale or require approvals or payoffs later.
