If you go solar by using a loan, your lender can place a lien on your equipment. This is a legal claim on your equipment alone; it does not apply to any other part of your home.
Confusion About UCC-1 Filings
A UCC-1 filing (Uniform Commercial Code), also known as a UCC-1 fixture filing or a UCC-1 lien, is a financial statement that your lender can make when you accept a loan from them. This is a public document that says if you defer payments, the lender can repossess your solar system.
A mortgage lender can search your property address and pull up this document. This will only be a problem if the lender is unfamiliar with solar liens. They might assume that the lien is on your property instead of your equipment and halt the loan. This can easily be cleared up by calling the lender and giving them information about your lien.
Selling a Home With a Solar Lien
A solar-equipment lien won't prevent you from selling your home. In fact, solar has proven to help sell homes by increasing their value (up to 5% more). To ensure the selling process runs smoothly, we recommend choosing a real estate agent with prior experience selling homes with solar systems. They will understand what a solar lien is and how solar can give you more opportunities to sell.
To ensure your lien is understood, learn everything about your specific UCC-1 filing and loan agreement. Preparing a folder with all this information could be helpful for when you decide to sell your home.