Will Sunnova put a lien on my business property? What is the Uniform Commercial Code (UCC) financing statement?

Whether we file a lien to secure our interest in the system depends on the energy plan you choose:

Sunnova Lease - When you choose the Sunnova Lease energy plan, Sunnova will file a UCC-1, which is a public declaration of our system ownership. This helps prevent the unauthorized sale of our equipment. In addition, if a business is foreclosed, the UCC-1 filing prevents the bank from claiming the equipment as part of the homeowner’s property.
Sunnova Loan - If you choose our Sunnova Loan energy plan, Sunnova will file a UCC-1 on the system as evidence of its security interest in the system until the loan is paid off
Sunnova Cash Purchase - If you choose our Sunnova Cash Purchase energy plan, Sunnova may file a UCC-1 for the period during which the system is being built. If we require a UCC-1 filing, Sunnova will remove the filing once the system is in service and paid in full.
In all cases, it’s important to note that Sunnova files a UCC-1 financing statement with respect to the equipment only, not your business or building. Some states refer to these filings as a lien on collateral – which in our case is the solar system and all other equipment installed.

If you are selling your business or securing financing using your business as collateral, there may be conditions that require the removal of the UCC-1 filing before selling or completing the financing process. The UCC-1 filing should not impact your ability to sell your business 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 business as the UCC removal process may take a few weeks.

With every energy plan, if you are planning to sell your business or property, you must notify us and receive our consent in advance as the removal process of the UCC-1 filing (lease and loan only) and approval of the new owner takes time. Sunnova customers are responsible for any UCC-1 removal expenses and fees.