Understanding Equipment Ownership vs. Service Responsibility in Solar Agreements
May 18, 2026 No Comments
Read More » If you signed a solar Power Purchase Agreement (PPA) and the per-kilowatt-hour rate has climbed higher than expected, the system is not producing what was described, or the agreement is creating obstacles to selling or refinancing your home, you are not alone. Many homeowners with PPAs from Sunrun, Sunnova, Tesla Energy, SunPower, Vivint Solar, and other providers have questions about their options.
PPAs are often confused with solar leases, but they are structured differently. Under a PPA, you do not pay for the equipment itself — you pay for the electricity the equipment produces, typically at a per-kilowatt-hour rate that increases each year through what is called an escalator clause. This page covers what makes PPA situations distinct, the situations a qualified attorney may review, and how SCRC’s intake process works.
Solar Cancellation Resource Center is a marketing and intake company. SCRC does not perform legal work. SCRC collects and organizes the information you provide, then connects you with a qualified law firm — such as Consumer Advocacy Law Group — that may review your situation. The initial intake is free, takes approximately 60 seconds, and you can submit your information at any point on this page.
A Power Purchase Agreement (PPA) is a contract under which a third party owns the solar equipment installed on your roof, and you agree to purchase the electricity that equipment produces — usually for 20 to 25 years. You do not pay for the panels, the inverter, or the installation. You pay only for the electricity, billed at a per-kilowatt-hour (per-kWh) rate that is set in the agreement.
Most PPAs include an annual rate escalator. This is a clause that increases the per-kWh rate by a fixed percentage every year — commonly between 2.9% and 3.9%. Over the 20- to 25-year term, that escalator can push the effective electricity rate well above what you would pay your local utility, depending on how utility rates change in your area.
Solar leases are similar in structure (a third party owns the equipment), but the payment is based on a fixed monthly fee rather than electricity production. The distinction matters because PPAs and leases are often described differently in marketing materials, and a qualified attorney may apply slightly different review considerations to each.
If your agreement is a solar lease (fixed monthly fee), see our solar lease cancellation information page. If you financed the equipment through a lender, see our solar loan cancellation information page.
Pull out your contract. If the agreement is a PPA, the document will typically include language like the following:
“Power Purchase Agreement” or “PPA” appears in the title or header.
The payment section refers to a “price per kWh” or “per kilowatt-hour rate” rather than a fixed monthly amount.
There is an “annual escalator” or “rate escalator” clause that defines how the per-kWh rate increases each year.
The provider retains ownership of the equipment for the duration of the agreement.
You agree to purchase all (or a minimum amount of) the electricity the system produces.
Common PPA providers include Sunrun, Sunnova, Tesla Energy, SunPower (under various corporate structures), and Vivint Solar. If your agreement is with one of these companies and includes per-kWh pricing rather than a fixed monthly fee, it is most likely a PPA.
There are several situations involving solar PPAs that have led homeowners to submit their information for intake. The information below is general and educational. Whether your specific situation may be eligible for a legal review is determined by a qualified attorney, not by SCRC.
Some homeowners report that the annual rate escalator was glossed over or not explained clearly at the point of sale. The salesperson may have focused on the first-year per-kWh rate without explaining how the rate would increase every year over the 20- to 25-year term. A qualified attorney may review whether the description of the escalator may be a potential issue under state consumer protection laws.
PPAs are often sold based on the assumption that utility rates will rise faster than the PPA escalator, keeping PPA electricity cheaper than utility electricity over time. When that comparison does not play out — for example, when utility rates stay flat or rise more slowly than projected — the PPA can become more expensive than buying electricity from the utility. A qualified attorney may review whether the rate comparison described at the point of sale may be a potential issue.
Because you pay per kWh under a PPA, production matters in a different way than it does under a lease. Some PPAs include a production guarantee from the provider; others do not. Some homeowners report that the equipment is producing significantly less electricity than was described at the point of sale, or that the production estimates used to justify the agreement turned out to be inflated. A qualified attorney may review whether the production description may be a potential issue.
Some homeowners report that the savings, financial projections, or guarantees described at the point of sale did not match what actually happened after installation. This may include claims about specific dollar savings per month, total savings over the term of the agreement, or how the PPA would interact with utility net metering programs. A qualified attorney may review whether the sales description may be a potential issue under state consumer protection laws.
Some homeowners report that a potential buyer has refused the property because of the attached PPA, or that a refinance has been affected by the UCC-1 fixture filing on the solar equipment combined with the long-term obligation to purchase electricity from a third party. A qualified attorney may review the homeowner’s options.
Recent bankruptcy filings in the solar industry have left many PPA homeowners without responsive service or honored production guarantees. The PPA obligation typically transfers to a successor servicer when the original provider closes. A qualified attorney may review whether the practical breakdown of the provider’s obligations may be a potential issue worth considering.
About PPA Payments
The decision to stop making payments must only be considered under the advice and representation of a qualified attorney. PPA payments are owed to a provider for electricity produced, and missed payments can have consequences that vary based on the agreement and applicable law. SCRC does not provide guidance on whether or when payments should continue or stop. If you have submitted your information and been connected with a qualified law firm, any questions about payments should be directed to the attorney handling your matter.
Most solar PPAs include a UCC-1 fixture filing. This is a notice filed in public records that places a lien on the solar equipment itself — not on your home. The UCC-1 protects the PPA provider’s ownership interest in the equipment they installed.
Even though the lien is on the solar equipment, it can affect a home sale or refinance because title companies and lenders see the filing during their searches. Some buyers and lenders are not comfortable proceeding with a property until the filing is resolved. A qualified attorney may review the homeowner’s options for addressing the UCC-1 filing on the solar equipment in the context of a specific situation.
This is a distinction that often gets confused. The PPA provider’s filing protects their ownership of the panels, inverters, and related equipment — not the home itself. SCRC does not provide guidance on how a UCC-1 filing on solar equipment may affect a specific real estate transaction. That determination is made by a qualified attorney based on the specifics of the situation.
Many PPAs include a buyout provision that allows the homeowner to purchase the equipment from the provider and end the per-kWh payment obligation. Buyout amounts are often substantial — frequently in the tens of thousands of dollars — and the calculation method is defined in the agreement.
A buyout is fundamentally different from any potential legal review. A buyout is a contractual option set by the provider; a legal review by a qualified attorney looks at whether the agreement itself may have been a potential issue based on how it was sold, how it has performed, or other factors specific to the situation. A qualified attorney may help a homeowner understand which considerations may apply to their specific situation.
SCRC follows a structured intake process. Each step is designed to gather complete information before connecting you with a qualified law firm. SCRC does not perform legal work at any stage.
You complete a short intake form that asks about your PPA, the provider that holds it, the per-kWh rate and escalator terms, what was described to you at the point of sale, and the issues you have experienced since. The intake takes approximately 60 seconds and there is no cost or obligation to submit your information.
If your initial intake suggests there may be matters worth a legal review, an SCRC specialist follows up to collect additional information. The homeowner provides their documentation — including the PPA agreement, sales materials, communication records, monthly statements showing kWh usage and per-kWh rates, and electric bills from before and after installation. SCRC organizes the information you provide; SCRC does not analyze, audit, or interpret your PPA.
The information you provide is then forwarded to a qualified law firm, such as Consumer Advocacy Law Group. A qualified attorney may review your documentation and determine whether your PPA situation may qualify for a potential legal review. Any decision about whether your situation has merit, what legal considerations may apply, and what next steps may be appropriate is made by the attorney — not by SCRC.
If a qualified attorney determines that your situation may be eligible for a legal review, the law firm communicates directly with you about next steps. From this point forward, the relationship is between the homeowner and the law firm. SCRC’s role is complete once the connection has been made.
SCRC operates on a fixed-fee model. Any fees that may apply are disclosed in writing before any commitment is made. The initial intake is free. You would know what fees apply before agreeing to anything, with no hourly billing and no surprise invoices.
Why Homeowners with PPAs Choose SCRC for Their Initial Intake
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Pull out your contract. A PPA charges you per kilowatt-hour for electricity produced and is typically titled “Power Purchase Agreement.” A lease charges you a fixed monthly fee for the use of the equipment. A loan involves a separate lender (such as GoodLeap or Mosaic) and you make payments on the equipment itself. Each type is governed by different considerations and a qualified attorney may apply different review angles to each.
: A rate escalator is a clause in most PPAs that increases the per-kWh rate by a fixed percentage every year — commonly between 2.9% and 3.9%. Over a 20- to 25-year agreement, the escalator can substantially increase what you pay per kWh. If the escalator was not clearly described at the point of sale, a qualified attorney may review whether this may be a potential issue.
This is a common situation when utility rates rise more slowly than the PPA escalator. SCRC does not provide guidance on individual financial decisions. A qualified attorney may review whether the rate comparison described at the point of sale, the escalator terms, or other aspects of the agreement may be a potential issue worth considering.
The decision to stop making payments must only be considered under the advice and representation of a qualified attorney. PPA payments are owed to a provider for electricity produced, and missed payments can have consequences that vary based on the agreement and applicable law. SCRC does not provide guidance on payment decisions. If you have been connected with a qualified law firm, please direct payment-related questions to the attorney handling your matter
The UCC-1 fixture filing typically associated with a PPA is a lien on the solar equipment, not on the home itself. However, the filing can appear in title and lender searches and may affect a real estate transaction. A qualified attorney may review how the filing may apply to your specific situation.
No. A buyout is a contractual option that allows you to purchase the equipment from the provider and end the per-kWh payment obligation. A legal review by a qualified attorney is different — it looks at whether the agreement itself may have been a potential issue based on how it was sold, how it has performed, or other factors. A qualified attorney may help you understand how each may apply to your situation.
It can. Different providers structure their PPAs differently and have different histories with consumer matters. A qualified attorney may consider the specifics of your provider and your agreement when reviewing the situation. The intake process gathers this information.
The PPA obligation typically transfers to a successor servicer when the original provider closes. The agreement remains in effect, but the practical breakdown of warranty and service obligations creates a situation a qualified attorney may review
The intake form itself takes approximately 60 seconds. Information collection typically takes one to two weeks, depending on how quickly the homeowner provides the requested documentation. Once SCRC has connected you with a qualified law firm, the timing of any review is determined by the attorney.
No. SCRC does not guarantee any outcome. Whether your PPA situation may qualify for a legal review — and the result of any review — is determined by a qualified law firm based on the specifics of your situation. Individual experiences vary.
These are the questions that come up most often during intake calls involving solar PPAs. The answers below are general and educational. They do not constitute legal advice.
Or call 888-918-2083 to submit your information