Home Sale / Refinance

Selling A Home With Solar

What steps must I take to sell my home with solar?

If the system is owned by a third party owner, such as Sunrun, Spruce (formerly known as KiloWatt or Clean Power Finance), New Columbia Solar (NCS), Redball, etc.

Step 1 - Collect your Paperwork - The contracts you signed with your GRID Outreach Coordinator contain a lot of important information, including who the third party owner of the system is, how you were able to receive the system at no cost to you, the warranties, as well as all the features of the solar system that you may want to highlight as a benefit of your home (such as the size rating of the system in kW, how much power they produce that future homeowners will also get at no cost, estimated environmental benefit, etc). The “Solar System Contact & Reference Sheet” is also a helpful 1 page resource that tells you who to contact for different scenarios and should be shared with the eventual new owner of your home.  

Step 2 - Prepare to answer questions about the solar system - It is important to inform your realtor how GRID’s program and the agreements you signed works. Even if your realtor has sold other homes with solar, GRID’s program is very unique within the industry, so they may make some false assumptions unless you show them your contracts and advise them otherwise. 

Be sure to explain to them that the contract for the solar system on your home is either a 20 or 25 year agreement where a third party company is the owner of the system, but all of the power the system produces for 20 or 25 years has been pre-paid in full by GRID. There are no monthly payments nor remaining balances and any future homeowner can enjoy free solar power under the same terms and warranties as you. Additionally, there are no liens on the home, there are simply some notices which will come up at title check (such as the UCC-1 filing or NOIEPC) as well as some additional minor paperwork that the third party owner will assist with. 

Step 3 -Contact your Third Party Owner ASAP- You must contact the third party owner of the solar system with 30 days notice to inform them of your plans to sell your home and give them proper notice to start the required paperwork. Contact information for all the third party owners that GRID has worked with are listed on this page.

Common steps your third party owner will need to take include temporarily removing the UCC-1 filing on your home (again, this is NOT a lien) and preparing a transfer agreement that will need to be signed by the new homeowner after the sale is complete. Continue reading these FAQ to learn more on the UCC-1 filing.

If the system is owned by you

Step 1 - Collect your Paperwork - The contracts you signed with your GRID Outreach Coordinator contain a lot of important information, including how you were able to receive the system at no cost to you, the warranties, as well as all the features of the solar system that you may want to highlight as a benefit of your home (such as the size rating of the system in kW, how much power they produce that future homeowners will also get at no cost, estimated environmental benefit, etc). If “Solar System Contact & Reference Sheet” is also a helpful 1 page resource that tells you who to contact for different scenarios and should be shared with the eventual new owner of your home.  

Step 2 - Prepare to answer questions about the solar system - It is important to inform your realtor and other professionals you are working with how GRID’s program and the agreements you signed works. Even if your realtor has sold other homes with solar, GRID’s program is very unique within the industry, so they may make some false assumptions unless you show them your contracts and advise them otherwise. 

Be sure to explain to them that the solar system on your home is owned by you and paid in full. There are no monthly payments nor remaining balances and any future homeowner will automatically own the panels and enjoy free solar power under the same terms and warranties as you. Additionally, there are no liens or notices on the home’s record from the system. 

Why did my third party owner file a UCC-1 filing? 

All third party owners of solar systems file a notice on the home’s record (commonly referred to as a UCC-1 filing or financial statement) after the solar system has been installed. This notice basically says to anyone who performs a title search on your address, “Just so you know, the solar system installed on this home is the property of someone different than the homeowner.” Sometimes realtors or lenders who are unfamiliar with this practice may tell you that a lien was placed on your home, but this is not true. A UCC-1 notice is not a lien and should never be mistaken for one. 

UCC-1 filings protect the third party owner’s rights as the solar system’s owner, but it does not make any claims against the rest of the home or property. Another reason why third party owners file the UCC-1 is because they want to keep track of their property and make sure that they are notified when the home has any change in owners. Seeing this notice on your home’s title record is a reminder that you need to contact your third party owner to tell them that you are in the process of a real estate transaction (selling, refinancing, home equity line of credit - HELOC, etc) so they can be prepared to temporarily remove the UCC-1 for you to proceed with the transaction and complete any other required paperwork.

Is a UCC-1 filing a lien?

No. What you’ll find on the title of a home is a UCC-1 filing, essentially a simple notice that the solar panels have an owner different than the homeowner. A UCC-1 filing is never a lien against the home.

Refinancing A Home With Solar

What do I need to know when refinancing my home with solar?

If the system is owned by a third party owner, such as Sunrun, Spruce (formerly known as KiloWatt or Clean Power Finance), New Columbia Solar (NCS), Redball, etc.

During the refinance process, your credit history and other public records will be reviewed. During this time, your lender or other companies will likely find a UCC-1 filing notice that the third party owner of the solar panels placed on your home’s record. The UCC-1 is meant to simply be a notice on the property record indicating that the solar panels have a different owner. It is not a lien on your home, and it should never be mistaken as one. This notice will simply need to be temporarily removed by the third party owner in order for you to proceed with the refinance. Don’t be alarmed, this is a simple and straightforward administrative process. To have a smooth experience refinancing your home, GRID recommends that you take the following steps:

Step 1 - Collect your Paperwork - The contracts you signed with your GRID Outreach Coordinator contain a lot of important information, including who the third party owner of the system is and how you were able to receive the system at no cost to you. The “Solar System Contact & Reference Sheet” is a helpful 1 page resource that tells you who to contact for different scenarios. 

Step 2 - Prepare to answer questions about the solar system - It is important to inform your lender and other professionals you are working with how GRID’s program and the agreements you signed works. Even if they have worked with other homes with solar, GRID’s program is very unique within the industry, so they may make some false assumptions unless you show them your contracts and advise them otherwise. 

Be sure to explain to them that the contract for the solar system on your home is either a 20 or 25 year agreement where a third party company is the owner of the system, but all of the power the system produces for 20 or 25 years has been pre-paid in full by GRID. There are no monthly payments nor remaining balances and any future homeowner can enjoy free solar power under the same terms and warranties as you. Additionally, there are no liens on the home, there are simply some notices which will come up at title check (such as the UCC-1 filing or NOIEPC) as well as some additional minor paperwork that the third party owner will assist with. 

Step 3 -Contact your Third Party Owner ASAP - You must contact the third party owner of your solar system with 30 days notice to inform them of your plans to sell your home and give them proper notice to start the required paperwork, including temporarily removing the UCC-1 filing on your home (again, this is NOT a lien). Contact information for all the third party owners that GRID has worked with are listed on this page.

Continue reading these FAQ to learn more on the UCC-1 filing.

If the system is owned by you

To have a smooth experience refinancing your home, GRID recommends that you inform your lender and other professionals you are working with how GRID’s program and the agreements you signed works. Even if they have worked with other homes with solar, GRID’s program is very unique within the industry, so they may make some false assumptions unless you show them your contracts and advise them otherwise. 

Be sure to explain to them that the solar system on your home is owned by you and paid in full. There are no monthly payments nor remaining balances and any future homeowner will automatically own the panels and enjoy free solar power under the same terms and warranties as you. Additionally, there are no liens or notices on the home’s record from the system. 

Why did my third party owner file a UCC-1 filing? 

All third party owners of solar systems file a notice on the home’s record (commonly referred to as a UCC-1 filing or financial statement) after the solar system has been installed. This notice basically says to anyone who performs a title search on your address, “Just so you know, the solar system installed on this home is the property of someone different than the homeowner.” Sometimes realtors or lenders who are unfamiliar with this practice may tell you that a lien was placed on your home, but this is not true. A UCC-1 notice is not a lien and should never be mistaken for one. 

UCC-1 filings protect the third party owner’s rights as the solar system’s owner, but it does not make any claims against the rest of the home or property. Another reason why third party owners file the UCC-1 is because they want to keep track of their property and make sure that they are notified when the home has any change in owners. Seeing this notice on your home’s title record is a reminder that you need to contact your third party owner to tell them that you are in the process of a real estate transaction (selling, refinancing, home equity line of credit - HELOC, etc) so they can be prepared to temporarily remove the UCC-1 for you to proceed with the transaction and complete any other required paperwork.

Is a UCC-1 filing a lien?

No. What you’ll find on the title of a home is a UCC-1 filing, essentially a simple notice that the solar panels have an owner different than the homeowner. A UCC-1 filing is never a lien against the home.