As more homeowners review their solar agreements in 2026, many are taking a closer look at how those contracts are structured and what options may be available moving forward.
While solar energy remains an important part of the residential energy landscape, the terms of solar agreements can vary significantly. For homeowners evaluating their situation, one of the most important distinctions is how the system is financed.
In general, solar agreements fall into two primary categories:
- Solar loans (where the homeowner finances and owns the system)
- Solar leases or Power Purchase Agreements (PPAs), where a third party owns the system
Understanding the differences between these models may help homeowners better navigate their agreements and determine what steps may be appropriate.
The Solar Cancellation Resource Center (SCRC) is a national intake company that assists homeowners in collecting and organizing their solar-related documentation. Once submitted, this information can be shared with a qualified law firm, such as our partners at Consumer Advocacy Law Group, where a licensed attorney may review the agreement and discuss potential legal considerations.
Understanding Solar Leases and PPAs
In a solar lease or PPA, the homeowner does not own the solar equipment. Instead, a third-party provider owns and maintains the system, while the homeowner agrees to make payments based on the terms of the agreement.
These agreements are often structured as long-term arrangements, typically spanning 20 to 25 years.
Key Characteristics of Leases and PPAs
- The provider retains ownership of the solar equipment
- The homeowner makes recurring payments based on usage or a fixed schedule
- Maintenance responsibilities are often defined in the agreement
- Transfer or modification of the agreement may require provider approval
Because the provider retains ownership, any changes to the agreement may depend on the terms outlined in the contract.
If documentation is provided, a qualified attorney may review these terms to determine whether there are any potential legal considerations.
Understanding Solar Loans
With a solar loan, the homeowner typically finances the purchase of the solar system through a lender.
This means the homeowner owns the system, but also assumes responsibility for repayment under the loan agreement.
Key Characteristics of Solar Loans
- The homeowner owns the solar equipment
- A lender finances the purchase of the system
- Monthly payments are made toward the loan balance
- The agreement may include financing terms, disclosures, and repayment conditions
Because these agreements involve financing, they are often governed by consumer lending laws and disclosures.
If documentation is provided, a qualified attorney may review the loan terms to determine whether they align with applicable requirements.
Structural Differences Between Loans and Leases
Understanding the structural differences between these two models may help homeowners better evaluate their situation.
Ownership
- Lease/PPA: Equipment is owned by a third-party provider
- Loan: Equipment is owned by the homeowner
Payment Structure
- Lease/PPA: Payments may be based on usage or a fixed agreement
- Loan: Payments are made toward a financing balance
Responsibility
- Lease/PPA: Responsibilities may be shared or defined by the provider
- Loan: The homeowner typically assumes responsibility for the system
Flexibility
The level of flexibility in modifying or ending an agreement depends on the specific terms outlined in the contract.
If documentation is provided, a qualified attorney may review these differences to determine whether any options may be available.
Factors That May Affect Your Options
Every solar agreement is different, but several factors may influence how a situation is handled.
Contract Terms
The language within the agreement defines rights, responsibilities, and procedures. This includes any provisions related to transfers, buyouts, or modifications.
System Performance
Some homeowners compare expected system performance with actual results over time.
Provider Status
In some cases, the original installer or provider may no longer be operating, or the agreement may have been transferred to another entity.
Communication History
Records of communication between the homeowner and the provider may provide additional context.
If documentation is provided, a qualified attorney may review these factors to determine whether there are any potential legal considerations.
Solar Agreements and Home Sales
For homeowners planning to sell their property, the type of solar agreement may influence the process.
Lease or PPA Considerations
In lease or PPA scenarios:
- The agreement may need to be transferred to the buyer
- The provider may have approval requirements for transfer
- The buyer may need to review and accept the agreement terms
Loan Considerations
In loan scenarios:
- The system is typically considered part of the property
- The loan balance may need to be addressed during the sale
- A UCC-1 filing (lien on the solar equipment) may need to be resolved
If documentation is provided, a qualified attorney may review how these factors apply to a specific situation.
Understanding the UCC-1 Filing
Some solar agreements involve a UCC-1 Financing Statement filed against the solar equipment.
This filing represents a secured interest in the equipment, not a lien on the home itself.
In certain situations, the filing may need to be addressed before completing a home sale or modifying the agreement.
If there are questions about the status of a UCC-1 filing, a qualified attorney may review the documentation to determine what steps may be appropriate.
Payment Structures and Escalation Clauses
Some solar agreements include payment structures that may change over time.
For example, certain agreements may include periodic increases based on the terms outlined in the contract.
Understanding how these provisions are structured may be an important part of reviewing your agreement.
If documentation is provided, a qualified attorney may review whether these provisions were clearly outlined.
Provider Changes and Industry Shifts
The solar industry has experienced changes over time, including company restructuring, consolidation, and closures.
In situations where the original installer is no longer operating, homeowners may need to determine which entity is responsible for the agreement.
This may require reviewing documentation provided by the homeowner.
A qualified attorney may review this information to determine whether there are any potential legal considerations.
Avoiding Informal Decision-Making
When dealing with a solar agreement, decisions made without reviewing the contract terms may lead to unintended outcomes.
Some homeowners may consider taking action based on limited information or informal communication.
However, because solar agreements often involve long-term contractual obligations, it may be helpful to review all documentation before making decisions.
If documentation is provided, a qualified attorney may review the situation and discuss potential considerations.
How SCRC Supports the Intake Process
SCRC does not provide legal advice and does not perform legal analysis. Instead, SCRC assists homeowners by organizing their information so it can be reviewed by a qualified law firm.
This process may include:
Document Organization
Homeowners provide their agreements and related materials. SCRC helps organize these documents for clarity.
Information Collection
Relevant details about the system and agreement are compiled into a structured format.
Law Firm Connection
SCRC connects homeowners with a qualified law firm, such as our partners at Consumer Advocacy Law Group, where an attorney may review the documentation and discuss potential legal options.
Planning Your Next Steps
If you are reviewing your solar agreement in 2026, taking a structured approach may help you better understand your situation.
This may include:
- Gathering your solar documentation
- Reviewing key terms within the agreement
- Keeping records of communication with providers
Submitting your information for intake may help ensure your documentation is organized for potential review by a qualified attorney.
Frequently Asked Questions
Is it easier to change a lease or a loan?
The answer depends on the specific terms of the agreement and the circumstances involved. If documentation is provided, a qualified attorney may review the agreement to determine what options may be available.
Can I switch from a lease to ownership?
Some agreements may include purchase options, depending on the terms outlined in the contract.
What happens if my solar provider is no longer operating?
If documentation is provided, a qualified attorney may review the agreement to determine whether another entity may be responsible.
Do all solar agreements include the same terms?
No. Terms, conditions, and structures can vary significantly between agreements.
Take the First Step Toward a Contract Review
Ready to turn your concerns into a clear path forward? Submit your information for a free, no-obligation intake to learn more about your potential options
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SCRC is not a law firm and does not give legal advice. SCRC does not advise any consumer contracted with the solar system to stop making payments without consulting an attorney first. Nothing in this communication establishes any type of attorney client relationship, SCRC is a marketing organization that connects consumers with qualified legal professionals.