Ucc Filing Solar Panels

Sometimes as referred to as a ucc 1 filing a ucc 1 fixture filing or a ucc 1 lien this is a public document that the owner of the equipment the solar company files to indicate that they have the legal right to repossess the solar equipment in the event that the debtor you the homeowner fails to keep up with their payments.

Ucc filing solar panels. It is a financing statement confirming tesla s ownership and or financial interest in the leased or financed solar equipment. Unfortunately when you go to refinance or sell the property it s generally trouble to have any kind of lien on your home. Is this ucc 1 a lien against my whole property or just the leased solar panels on my roof. To file the agreement the authorized ucc 1 is filed with the secretary of state sos and the county where your solar home is located.

The sun comes up and there s just energy there you can run your house on it you can charge your battery. Not only does it help with climate change but if you get a battery it can provide backup power when the grid goes down. However does not make claim against the real property. It helps prevent the sale of our equipment without our knowledge.

Mine is a pre paid lease so there is no chance for default so no need for collateral. The ucc 1 fixture filing is a public declaration of our interest in the solar energy system. If the lender that holds the mortgage on the real property forecloses on our customer s home the ucc 1 filing protects our interest in the solar energy system and prohibits the lender from taking ownership of it. If you re not buying your solar panels with cash the manufacturer may place a lien or uniform commercial code filing on your property to make sure you keep paying for them.

Fixtures are defined in section 9 102 of the ucc as goods that have become so related to particular real property that an interest in them arises under real property law. Although the solar panel system will be attached to a particular home the ucc 1 financing statement will show the true owners it ll show that the homeowner is simply leasing the solar system through a ppa or from a tpo. When the only property described in the ucc filing as collateral is the solar equipment covered by the lease or power purchase agreement and not the home or underlying land such a precautionary ucc filing is acceptable and a minor impediment to title as long as the loan is underwritten in accordance with this topic. As a homeowner you authorized a uniform commercial code 1 ucc 1 filing when you received a loan to add solar panels to your home.

Ucc 1 fixture filing for home solar panel systems some people call the ucc 1 a lien but it can also be referred to as a financing statement and commonly goes by the name fixture filing. With this in mind a solar energy system under real property law would fall into this category as solar panels are typically mounted to the roof of the home. Ucc 1s are common for solar panel leases power purchase agreements ppas with monthly payments.