Solar UCC-1 Liens in Florida: What Homebuyers Aren't Told
Many solar leases and solar financing agreements file UCC-1 liens that homeowners don't discover until they try to refinance or sell — because the solar decision happens after the home purchase.
Learn How Florida Buyers Avoid This
What Is a UCC-1 Lien?
A UCC-1 financing statement is a legal document filed by lenders and leasing companies to establish a security interest in personal property. In the solar industry, these filings are commonly used to protect the leasing company's interest in solar equipment installed on your home.
Unlike traditional property liens that appear clearly in title searches during home purchases, UCC-1 filings are often recorded against the homeowner's name rather than the property address itself. This critical distinction means standard title searches conducted during real estate transactions frequently miss these encumbrances entirely.
The filing creates a legal claim that can complicate future refinancing, home equity loans, or property sales. Most homebuyers and even experienced realtors don't encounter these documents during the purchase process because they're filed in a separate database maintained by the Florida Department of State, not in county property records where mortgage liens are recorded.
Why This Is a Florida Problem
High Refinance Activity
Florida homeowners refinance at rates significantly higher than the national average. Competitive mortgage rates and rising home values create frequent refinancing opportunities that reveal hidden UCC-1 liens.
Homestead Protections
Florida's homestead exemption and Save Our Homes cap portability provisions encourage homeowners to maximize property tax benefits through strategic refinancing, making lien discoveries more common.
Post-Closing Discovery
The timing mismatch means UCC-1 filings become problems months or years after purchase, when homeowners seek to tap equity or change lenders — not during the initial title search.
Many Florida homeowners only learn about UCC-1 liens when they attempt to refinance their mortgage or apply for a home equity line of credit. At that point, the lender conducting a comprehensive financial review discovers the filing and requires it to be subordinated or removed before approving the new loan. This discovery often comes as a complete surprise, creating delays, additional costs, and sometimes deal-breaking complications that could have been entirely avoided with better timing and planning.
The Timing Trap: How UCC-1 Liens Appear After Purchase
Understanding the sequence of events is critical to avoiding this common pitfall. The UCC-1 lien doesn't exist when buyers purchase the home — it's created later when solar is added after closing.
1
Step 1: Home Purchase
Buyer purchases a Florida home without solar panels. Title search is clean. No UCC-1 liens exist at closing.
2
Step 2: Post-Closing Marketing
After closing, homeowner receives aggressive marketing for "$0 down solar" programs and "free solar" offers from installation companies.
3
Step 3: Lease Selection
Because mortgage options are no longer available post-purchase, buyer chooses a solar lease or PPA as the only accessible financing path.
4
Step 4: UCC-1 Filing
Solar leasing company files a UCC-1 financing statement to protect their equipment investment. Homeowner may not be clearly informed this is happening.
5
Step 5: Later Discovery
Homeowner discovers the UCC-1 lien months or years later when attempting to refinance, obtain home equity financing, or sell the property.
This timeline reveals why the problem is so widespread. The lien doesn't exist during the home purchase when title searches occur. It's created afterward, through a separate transaction that many homeowners don't fully understand until it creates obstacles to their financial flexibility.
Why Solar Leases Create This Risk
Solar leases are structured as long-term commitments, typically spanning 25 years. These extended terms create significant complications for homeowners who need financial flexibility.
The first five years of these agreements present the most challenging obstacle. This minimum lock-in period is tied to federal solar tax credit monetization requirements. The leasing company must maintain control of the solar equipment to claim and benefit from these tax incentives, which they use to subsidize the "$0 down" offers that attract homeowners in the first place.
25-Year Commitment
Solar leases lock homeowners into agreements that span a quarter-century, far exceeding typical homeownership durations in Florida and creating transfer complications.
5-Year Minimum Lock
Early termination is either prohibited or extremely expensive during the first five years due to tax credit recapture provisions that protect the leasing company's investment.
Control Requirements
Leasing companies need legal mechanisms to maintain control over the equipment they own. UCC-1 filings provide this protection but create conflicts with mortgage lenders.
Refinancing Conflicts
The security interest established by UCC-1 filings directly conflicts with mortgage lenders' requirements for first-position security interests in all improvements to the property.
Companies like Sunrun, Palmetto Lightreach, Tesla Energy, and Enfin commonly use these lease structures. These arrangements are designed to make solar accessible to homeowners who can't or won't purchase systems outright, but they create legal entanglements that weren't part of the original home purchase and can't easily be undone when financial circumstances change.
How Florida Buyers Avoid the UCC-1 Lien Trap
The solution is straightforward but requires a fundamental shift in thinking about when solar decisions should be made. Prevention is far simpler than remediation.
01
Plan Solar Before Purchase
Include solar in your home purchase decision from the beginning. Evaluate properties with solar compatibility in mind, and structure financing that accommodates solar from day one.
02
Avoid Post-Purchase Pressure
Resist aggressive marketing for "$0 down" solar leases after closing. These offers are designed to capitalize on homeowners who didn't plan for solar during purchase and have limited financing options.
03
Maintain Mortgage Compatibility
Keep solar financing compatible with your mortgage and future refinancing needs. Structure solar investments to preserve your financial flexibility rather than constraining it for 25 years.
04
Integrate Solar with Homeownership
Treat solar as an integral part of your home purchase decision, not a separate contract added later. This approach prevents legal conflicts and maintains clean title.
When solar is planned before home purchase, multiple financing pathways remain available. Mortgage programs exist that can incorporate solar costs. Purchase options preserve homeowner control without UCC-1 complications. The key is timing — making the solar decision part of the home purchase process rather than a separate transaction afterward.
This approach requires coordination between homebuyers, realtors, mortgage lenders, and solar planning professionals before closing. The extra planning pays dividends by avoiding the legal entanglements, refinancing obstacles, and financial constraints that plague homeowners who add leased solar systems after purchase.
What Happens When You Don't Plan Ahead
1
Refinancing Delays
Lenders discover the UCC-1 lien during their title review and require subordination or removal before proceeding.
2
Additional Costs
Obtaining subordination agreements from solar leasing companies often involves fees, legal costs, and administrative expenses.
3
Deal Complications
Some transactions fall through entirely when UCC-1 issues can't be resolved within required timeframes.
Real-world consequences extend beyond paperwork hassles. Homeowners have lost favorable refinancing rates because resolution took too long and rates increased. Home sales have been delayed or repriced downward when buyers learned about lease obligations during due diligence. Home equity lines of credit have been denied when lenders couldn't establish clear first-position security interests.
The financial impact can be substantial. A missed refinancing opportunity might cost thousands in higher interest payments over the loan term. A sale delay could mean lost purchase opportunities on a new home. These aren't theoretical problems — they affect Florida homeowners every day because solar decisions were made after home purchase rather than before.
Understanding Your Options
Post-Purchase Lease
What It Is: Adding a solar lease after closing on your home purchase.
UCC-1 Risk: High — filing is standard practice.
Refinancing Impact: Significant complications likely.
Duration: 25-year commitment with 5-year minimum lock.
Pre-Purchase Planning
What It Is: Incorporating solar into your home buying decision from the start.
UCC-1 Risk: Eliminated through proper structuring.
Refinancing Impact: Minimal to none when properly planned.
Duration: Aligned with homeownership timeline.
The choice seems obvious when presented this way, yet thousands of Florida homeowners continue to make solar decisions after purchase simply because they didn't know to plan differently. The information gap is the problem — not a lack of viable solutions.
Pre-purchase solar planning isn't more expensive or more complicated. It simply requires homebuyers, realtors, and lenders to coordinate on solar considerations during the home selection and financing process rather than treating solar as an afterthought once the home purchase is complete.
The Reality of Florida's Solar Market
300K+
Florida Solar Installations
Over 300,000 residential solar installations exist in Florida, with thousands added monthly.
60%
Financed Through Leases
Approximately 60% of residential solar in Florida involves lease rather than ownership.
25
Years of Commitment
Standard solar lease terms span 25 years, outlasting average homeownership duration significantly.
Florida's solar market is booming, driven by abundant sunshine, rising electricity costs, and aggressive marketing by solar companies. The growth is positive for renewable energy adoption, but the financing structures haven't kept pace with homeowner mobility and refinancing needs.
The problem isn't solar itself — it's the disconnect between when solar decisions are made and how home financing works. Homebuyers who close on their homes and then consider solar are limited to lease options that create UCC-1 complications. Those who plan solar before purchase have access to financing structures that integrate cleanly with their mortgage and preserve future flexibility.

Important: This page does not recommend for or against solar energy. Solar can be an excellent investment for Florida homeowners. The issue is timing and financing structure, not whether solar makes sense for your home.
Take Action: Resources for Florida Homebuyers
Three options exist for Florida homebuyers who want to avoid UCC-1 lien complications while still benefiting from solar energy. Each addresses the timing and financing structure issues in different ways.
Clear-Title Solar™
A solar ownership structure designed specifically to avoid lease lock-ins and UCC-1 filings. This approach eliminates the 25-year commitment problem while preserving refinancing flexibility.
Solar-Ready Homes™
Florida properties pre-evaluated and pre-planned for solar compatibility. These homes have solar considerations already integrated into the purchase process and financing structure.
QuiqNest Pre-Purchase Planning
Solar planning services for homebuyers before they close on their purchase. This coordination ensures solar decisions align with mortgage financing from day one.
The common thread: all three options address solar before or during the home purchase process, not after. This timing shift is what eliminates UCC-1 lien complications and preserves homeowner financial flexibility.
No forms to fill out. No sales calls. These resources exist to educate Florida homebuyers about timing and structure — the two factors that determine whether solar enhances your home investment or constrains it for 25 years.