The Solar Trap: How LEASING Your Roof Could Destroy Your Financial Future
The Solar Dream Gone Wrong
Across America, homeowners are being sold a dream: lower utility bills, energy independence, and a cleaner future — all at “no upfront cost.” But for too many, that dream becomes a nightmare wrapped in predatory solar leases and confusing financing terms.
Solar should be empowering, not entrapping. Unfortunately, tens of thousands of homeowners have found themselves:
Unable to sell their homes due to lien-blocked titles
Unable to refinance their mortgages because lease companies won’t subordinate.
Paying more for electricity than they did before
Losing their federal tax credits to the solar financing company
Facing ballooning payments due to escalator clauses they never understood
This post will help you understand why this happens, how the solar sales industry unintentionally trains reps to mislead, and what alternative options (like Lowtility) actually protect you and your home.
🧾 How Solar Leasing Really Works
When a homeowner chooses a solar lease or Power Purchase Agreement (PPA), they’re not buying solar panels — they’re renting them from a third-party financier. In exchange for installing the panels, you commit to paying them a fixed (or escalating) monthly payment for 20–25 years. Your giving them permission to put their panels on your roof for a monthly fee.
On the surface, this seems like a win-win. But here's the catch:
You don’t own the system.
You often can’t claim the federal tax credit — the leasing company does.
There’s typically a lien on your property, even if they call it a "UCC filing."
Monthly payments increase by 2.9% to 4.9% per year — a hidden escalator.
What happens if the Lease company goes out of business.
Transferring the lease to a buyer is complicated and often kills deals.
You give the lease company the last say, on what happens to your property.
According to home appraisal rules, LEASED SOLAR can not be considered in the valuation of a home.
Can be nearly impossible to pay off unless you pay all of it off.
Most homeowners aren’t told this. Why? Because the sales rep is often incentivized just to close the deal — not to educate. Solar Sales reps have no Fiduciary responsibilities to home owners.
🧠 The Sales Script: How Reps Are Unintentionally Trained to Mislead
Solar sales reps — especially at large volume firms — are often trained with objection-handling scripts, not product knowledge. Many reps:
Don’t understand the long-term financial obligations of the leases they’re selling.
Are told to say things like:
“It’s just a bill swap.”
“You can cancel at any time.”
“It increases your home value.”
“It’s easily transferable.”
“I’m working with ‘xyz’ Utility company”
Jump on any social media site where they recruit solar sales reps and you’ll see they openly coaches reps to:
“Tell them what they need to hear so they sign the contract” Tips on how to NOT come off as a solar sales person, and imply they work with the utility companies, while focusing on the payment and omitting the legal total debt obligation the homeowner is agreeing to.
It’s estimated that greater than 75% of the solar sales reps have even read the full contracts they are trying to get homeowners to sign. A majority when asked what a lien is can’t explain it’s implications to the homeowners.
Often the plan presented is often a 25-year lease with escalating payments, buried in legal language that most homeowners don’t read — or can’t fully understand.
💥 The Homeowner Fallout
Here’s what happens after the ink dries:
🏠 1. Can’t Sell the Home
When you sell a home with a solar lease:
You have to find a buyer willing to assume the Lease.
The new buyer must qualify to assume the lease.
The solar company must approve the transfer (they can deny it).
Many buyers walk away when they hear the word “lease.”
Forcing seller if they want to sell their house to eat the whole cost of the Lease.
💳 2. Can’t Refinance
Mortgage lenders often won’t refinance homes with active solar liens or leases — especially if the solar company won’t subordinate (move to second lien position). Many lender looked at combined loan to value of all the liens attached to a house. With the lien it pushes many home owners into higher risk brackets because the lien amounts combined are more than the home is worth. Making their interest rates higher or affecting qualification all together.
💰 3. Escalating Payments
A $120 monthly solar lease could grow to $225 by year 20 — even if your real electric bill would have been less.
📉 4. Lost Tax Credits
The leasing company claims the 30% federal tax credit, even though you're paying them monthly.
🧑⚖️ 5. Legal Bind
You're locked into a 20–25-year contract. Breaking it early can cost tens of thousands in termination fees.
🧑⚖️ Real Lawsuits & Government Investigations
This isn’t just anecdotal. A growing number of lawsuits and complaints have exposed the solar leasing industry:
🔹 Class Actions
Sunnova and SunPower have faced class actions for misrepresentation and deceptive practices.
Homeowners allege they were misled into believing they owned their systems or that leases wouldn’t affect resale.
🔹 State Investigations
California Attorney General sued solar companies for unlawful business practices.
New Jersey fined companies for deceptive marketing under the Consumer Fraud Act.
🔹 Federal Oversight
The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) have received thousands of complaints.
💸 Why Banks and Solar Companies Push Leases
Why does this system even exist?
Because Leasing companies and third-party financiers make money through:
Tax equity investing (they get the tax credit)
Securitizing solar leases into financial instruments (just like mortgages)
Dealer fees — installers are often charged 15–30% to originate financing, which is passed on to the customer as inflated pricing
The selling of tax credit on secondary markets.
Since the loan is tied to the house, banks know for a homeowner to refinance or sell the house there has to be a clear title their and the lien has to be Paid. With record appreciation, the last several months banks know there’s no way for a homeowner to walk away from their loan without getting paid.
Meanwhile, reps are paid high commissions, even if the customer ends up worse off. And nobody is on the hook when the system fails — except the homeowner.
The tax credit is based off the cost of the system, and Leasing Companies get to rapid depreciate the system they own, and the homeowner rents on the Leasing companies taxes, it’s an asset that is essentially paid for by tax credits and tax deductions that produces monthly s cash flow but the home owner is on the hook for everything. The Inflation Reduction Act created a legal pathway for Leasing companies to get money from the government to their pockets while making the home owner liable for the payment and the loan.
🌱 A Better Way: Lowtility’s Energy-Integrated Mortgage
Here’s the good news: You don’t need to avoid solar — you just need to avoid solar leases.
Lowtility offers a smarter model by integrating solar directly into your mortgage, with no lease, no second lien, and no tricks.
✅ What Lowtility Offers:
Feature + Benefit
🎯 Own your solar system // Keep the 30% federal tax credit
📜 No second liens // You keep clean title and mortgage flexibility
🏡 Transferable system // Home can be sold easily — no lease approval
💵 Increased home values // Because you solar is owned and not leased appraisers can consider solar in the valuation of your home.
📈 Transparent pricing // No dealer fees or inflated finance charges
🤝 Additional Tax Benefits // For many their mortgages come with tax deductions. Where as solar liens and Leases do not.
💡 Real Case Example:
A Lowtility buyer added a $37,000 solar system that would have been double the cost had they leased. When they bought their home and used the resulting $11,725 in solar boost funds to cover their entire 3.5% down payment. They moved in with zero cash to close, saved $377/month in utilities, and kept the $20,100 tax credit.
Another Lowtility home owner used the equity in their home to add a solar system, and to pay off High interest debts. Because they used their mortgage their old utility bill essentially wen to paying off their mortgage.
Solar was not a burden — it was a tool for ownership.
🧭 What Homeowners Should Do
Before you sign any solar contract:
Ask if it’s a lease — if it’s a lease, pause. How can you get out of it. How much does it cost in total not just the monthly fee. Negotiate for the lowest total cost no the lowest monthly payment.
Read the escalation clause — most payments increase over time.
Confirm title impact — if there’s a lien or UCC filing, ask what it affects.
Compare to mortgage-integrated options — like Lowtility.
🧨 Final Word: The Solar Movement Deserves Better
Solar energy is one of the greatest innovations of our time. Solar is great! But it’s being corrupted by predatory financial engineering.
If you’re a homeowner, you deserve:
To own your system
To keep your tax credit
To retain control of your home and equity
And to actually save money, not just feel good about a decision that costs you more long-term
Lowtility exists because the current system is broken.
It’s time to stop letting solar financing derail American homeownership — and start using energy savings to unlock it instead.
🔍 Want to Learn More?
We’ll help you understand your solar + mortgage options and see if a Lowtility loan is right for you. Let’s find the smartest way to own your energy.
👉 GET A FREE QUOTE TODAY or schedule a free call to explore your options.
📚 Sources & Citations
FTC Solar Complaints Database
CFPB Solar Financing Reports
California AG v. Solar Companies [Public Record]
NerdWallet 2025 Home Buyer Report
CNET 2025 Energy Survey
Documents provided by Lowtility.com
“Solar Leasing and the New Subprime” — ProPublica, 2024
NREL: Home Sale Challenges Due to Solar Leases
