--- title: Solar Agreement Types and the UCC-1 description: Confused about Solar Leases, PPAs, and UCC-1 filings? Learn the differences between solar contract types, and why UCC-1 liens can become a problem for you image: https://blog.solarescalations.com/hubfs/Looking%20Back%20Facebook%20Ad-1.jpg --- [Skip to content](https://blog.solarescalations.com/blog/solar-agreement-types-and-the-ucc-1#main-content) [![logo-40](https://blog.solarescalations.com/hs-fs/hubfs/logo-40.png?width=3300&height=1274&name=logo-40.png)Homepage](https://blog.solarescalations.com/blog/www.solarescalations.com) [Contact Us](mailto:info@solarescalations.com) [Contact Us](mailto:info@solarescalations.com) ![](https://blog.solarescalations.com/hs-fs/hubfs/Looking%20Back%20Facebook%20Ad-1.jpg?width=1200&height=628&name=Looking%20Back%20Facebook%20Ad-1.jpg) # Solar Agreement Types and the UCC-1 ![John Ryan](https://app.hubspot.com/settings/avatar/9f71d9f12bbdc9c267e1a4e78d770d6c) John Ryan September 1, 2025 ## Residential Solar Lease - **You rent the panels.** Fixed monthly bill no matter what they produce. - **Risk:** You pay even if performance tanks. - **Headache:** Leases are notorious deal-killers when selling your home. --- ## Power Purchase Agreements (PPA) ### **True PPA** - **Billing:** Charged per kWh only for actual production. - **Safety net:** If the system stops producing, you don’t owe. - **Catch:** Escalator clause (often 2.9% annually) ratchets up your rate regardless of utility trends. ### **Leveled PPA** - **Billing:** Estimated yearly production ÷ 12 = same bill each month. - **Looks like a lease:** You pay even if production underperforms. - **Catch:** Same 2.9% escalator, and same headaches transferring at sale. --- ## Direct Purchase (Cash or Loan) ### **Cash Purchase** - **Ownership:** You own the equipment outright—no monthly payments beyond your normal utility “standby” charges. - **Incentives:** Eligible for the federal solar Investment Tax Credit (ITC)—but **that expires January 1, 2026** for homeowners. After that, it’s gone for direct purchases. - **Long-term math:** Once ITC is gone, direct purchase costs will still “pencil out” as utility rates keep climbing—sometimes even faster without the lease/PPA escalators. - **Warranties:** Most solar panels carry **25-year manufacturer warranties**; inverters usually **12–20 years**. ### **Loans** - **Availability:** Solar loans are everywhere, but **read the fine print.** - **Dealer fees:** Finance companies tack on large hidden dealer fees (sometimes 20–30%), which get rolled into your loan balance. Easy to hide in long amortizations. - **Advice:** Compare against local banks or credit unions, who may offer lower-fee loans. Ask directly: “What dealer fee is built into this loan?” --- ![A photo of a middle aged man and woman reviewing a solar contract together with a calculator and notes on the table looking across the table at a sales representative-1](https://242681937.fs1.hubspotusercontent-na2.net/hub/242681937/hubfs/AI-Generated%20Media/Images/A%20photo%20of%20a%20middle%20aged%20man%20and%20woman%20reviewing%20a%20solar%20contract%20together%20with%20a%20calculator%20and%20notes%20on%20the%20table%20looking%20across%20the%20table%20at%20a%20sales%20representative-1.png?width=1200&length=1200&name=A%20photo%20of%20a%20middle%20aged%20man%20and%20woman%20reviewing%20a%20solar%20contract%20together%20with%20a%20calculator%20and%20notes%20on%20the%20table%20looking%20across%20the%20table%20at%20a%20sales%20representative-1.png) In Today's Shaky Solar Environment, Due Diligence is required to avoid troubles down the road. Choose your solar company and your contract type carefully.  ![Default image alt text](//7528315.fs1.hubspotusercontent-na1.net/hubfs/7528315/raw_assets/public/mV0_d-web-default-modules_hubspot/img/slider-dark-image.jpg) **2** An optional caption for the image that will be added to the gallery. Enter any descriptive text for this image that you would like visitors to be able to read. ![Default image alt text](//7528302.fs1.hubspotusercontent-na1.net/hubfs/7528302/raw_assets/public/mV0_d-web-default-modules_hubspot/img/slider-light-image.jpg) **3** An optional caption for the image that will be added to the gallery. Enter any descriptive text for this image that you would like visitors to be able to read. ![Default image alt text](//7528315.fs1.hubspotusercontent-na1.net/hubfs/7528315/raw_assets/public/mV0_d-web-default-modules_hubspot/img/slider-dark-image.jpg) **4** An optional caption for the image that will be added to the gallery. Enter any descriptive text for this image that you would like visitors to be able to read. ![Default image alt text](//7528302.fs1.hubspotusercontent-na1.net/hubfs/7528302/raw_assets/public/mV0_d-web-default-modules_hubspot/img/slider-light-image.jpg) **5** An optional caption for the image that will be added to the gallery. Enter any descriptive text for this image that you would like visitors to be able to read. ![Reviewing a Contract Facebook Ad](https://242681937.fs1.hubspotusercontent-na2.net/hub/242681937/hubfs/Reviewing%20a%20Contract%20Facebook%20Ad.jpg?width=1200&length=1200&name=Reviewing%20a%20Contract%20Facebook%20Ad.jpg) ## The UCC-1 Filing - **What it is:** A lien filed by the finance company, showing they own the panels. - **Impact:** - Home sales grind to a halt until it’s cleared or transferred. - Refinancing often gets blocked. - Bankrupt solar company? The lien stays like a ghost until you fight to remove it. --- ✅ **Bottom Line:** - **Lease:** Rent panels, fixed bill, tough to exit. - **True PPA:** Pay only for production, escalator risk, no bill if system fails. - **Leveled PPA:** Flattened monthly bill, but you’re stuck paying even when output is low. - **Direct Purchase (Cash):** Best long-term control, ITC until 1/1/2026, strong warranties. - **Loans:** Attractive but risky—dealer fees can erase the savings. ---  John Ryan                                                                                                                                     Executive Director                                        About Solar Escalations LLC: Solar Escalations LLC was started with two primary goals in mind. First - Help existing solar customers that are stuck with bad solar agreements, faulty installations, and unresponsive solar  companies. Second - To advocate for stronger consumer protections in the solar industry through our Ambassador for Change program. [Ambassador Program Details](https://solarescalations.com/ambassadors-for-change) If we can assist you, let us know. The first consultation is always "no cost". You can use the link below or send us an email to [Email Us Here](mailto:info@solarescalations.com) [View Our Website](http://www.solarescalations.com)   ## Share this post [mailto:https%3A%2F%2Fblog.solarescalations.com%2Fblog%2Fsolar-agreement-types-and-the-ucc-1](mailto:https%3A%2F%2Fblog.solarescalations.com%2Fblog%2Fsolar-agreement-types-and-the-ucc-1) ## Keep reading ### [![](https://blog.solarescalations.com/hs-fs/hubfs/Looking%20Back%20Facebook%20Ad-2.jpg?width=1200&height=628&name=Looking%20Back%20Facebook%20Ad-2.jpg) Homeower Roof Leaks From Solar Roof Leaks From Solar Installation: Causes and How to Protect Your Home](https://blog.solarescalations.com/blog/roof-leaks-after-solar-installation-causes-timing-and-how-to-protect-your-home-and-health) ### [![](https://blog.solarescalations.com/hs-fs/hubfs/US%20Capitol%20Facebook%20Ad.jpg?width=1200&height=628&name=US%20Capitol%20Facebook%20Ad.jpg) Consumer Protection Solar Contract Arbitration Clause “Silenced No More: The FAIR Act Gives Solar Homeowners Their Voice Back”](https://blog.solarescalations.com/blog/can-we-get-a-ban-on-those-nasty-arbitration-clauses-....maybe) [![](https://blog.solarescalations.com/hs-fs/hubfs/logo-40-1.png?width=170&height=66&name=logo-40-1.png)](http://www.solarescalations.com) --- Privacy Policy · Legal · © 2026 Solar Escalations, LLC. 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