No, a Sunnova does not put a lien on your home.
When a homeowner enters into a PPA or lease, the solar service provider (third-party owner) may file a Uniform Commercial Code filing (UCC-1) on the home solar system to show that it is the true owners of the home solar system.
At Sunnova, the UCC-1 filing is a public declaration of our solar system ownership. This helps prevent the unauthorized sale of our home solar equipment. In addition, if a home is foreclosed, the UCC-1 filing prevents the bank from claiming the home solar system as part of the homeowner’s property.
If you have received a loan to purchase your solar system, the lender may file a UCC-1 filing on the system as evidence of its security interest in the system until the loan is paid off.
It’s important to note that Sunnova files a UCC-1 financial statement with respect to the home solar system only, not your home. Some states refer to these filings as a lien on a collateral - in our case, it is the solar system we (or our dealers) installed on your home.
If you are selling a home or securing financing using your home as collateral, there may be conditions that require the removal of the UCC-1 filing before the home can be sold or the financing process is completed.
The sale of a home is the most common scenario where the UCC-1 filing needs to be removed in advance. However, this applies also to any process that may affect your home’s title with the county. For example, if you decide to secure a second mortgage on your solar home, we will also need to remove the UCC-1 filing before you can do so.
The UCC-1 filing should not impact your ability to sell your home as it will be removed and refiled under the new title owner’s name. However, we recommend you contact us as soon as you think you will be selling your home as the UCC removal process may take a few weeks.
Sunnova customers are responsible for any UCC-1 removal expenses and fees.