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What If I Already Paid Off Most or All of My Solar Panel Loan?
If you're a homeowner who financed your solar panel system through a loan, you might be wondering what your options are if you've already paid off most or all of the loan, especially if issues with the solar company or the panels themselves arise. This is a common question that many homeowners face, particularly when dealing with problems such as company bankruptcies, UCC liens, or unfulfilled warranties.
Here, we’ll break down what happens when you’ve already paid off your solar loan and provide actionable insights to protect your rights and finances.
Understanding the Challenge: Paid-Off Loans and UCC Liens
One of the most frustrating situations for homeowners is discovering that a UCC lien has been placed on their solar panels. UCC liens are often filed by lenders to secure their financial interest in the solar equipment until the loan is fully repaid. While a UCC lien itself isn’t harmful, it can prevent you from selling your home or transferring ownership until the lien is satisfied.
The question becomes even trickier when you’ve paid off most or all of your solar loan, and yet, issues persist—whether it’s poor installation, unmet promises about energy savings, or the company going out of business. You might feel stuck with a system that doesn’t deliver on its promises, and you may be wondering if there’s any recourse to recover your investment.
Steps You Can Take if You’ve Paid Off Your Loan
If you find yourself in this situation, here are some steps you can take:
Consult a Lawyer Experienced in Solar Panel Cases
First and foremost, consult an attorney who specializes in solar panel lawsuits. These legal experts can help you understand your rights, assess whether there’s been a breach of contract or warranty, and guide you through the next steps. Even if the loan is paid off, you may still have claims against the lender, installer, or manufacturer.
File a Notice of Payment Under Protest
If you’ve had to pay off your loan to resolve a UCC lien or facilitate the sale of your home, consider filing a notice of payment under protest. This is a legal strategy where you pay the loan or lien amount while explicitly stating that you reserve the right to pursue a refund through legal action.
By sending this notice to the lender, you’re protecting your ability to later argue that the payment was made under unfair circumstances—for example, due to a breach of warranty by the solar installer or misrepresentations made at the time of sale.
Document All Communications and Evidence
Keep detailed records of:
Communications with your lender and the solar company.
Installation agreements, warranties, and performance guarantees.
Payment records for the loan.
Evidence of any misrepresentations or unmet promises (e.g., energy savings projections that weren’t met).
This documentation will be invaluable if you pursue a refund or damages.
Consider Legal Action for a Refund
Even if you’ve paid off the loan, you may still have a case for a refund. For example, under the Federal Trade Commission (FTC) Holder Rule, lenders can be held liable for claims and defenses you have against the solar company. This means you could potentially sue for the amount you’ve already paid if the solar company breached its contract or made false promises.
Why Paying Off the Loan Doesn’t Mean You’re Out of Options
It’s a common misconception that paying off a solar loan eliminates your ability to take legal action. In reality, paying off the loan can sometimes strengthen your case, as it demonstrates your willingness to resolve the matter in good faith.
By working with an experienced legal team, you can explore options to recover funds or address unresolved issues with your solar panels. This includes pursuing claims against:
The lender, for failing to ensure the solar company met its obligations.
The solar company, for breaches of contract or warranty.
The manufacturer, for defective equipment.
Protecting Yourself Moving Forward
If you’re considering another solar project or helping someone else navigate this situation, here are some tips to avoid similar pitfalls:
Research the Solar Company: Look for companies with strong reputations, solid warranties, and no history of bankruptcies.
Understand the Financing Agreement: Review the loan terms, including any clauses about UCC liens, early payoff penalties, and the lender’s obligations.
Consult an Attorney Before Signing: An attorney can help you review contracts to ensure your rights are protected.
Conclusion
Even if you’ve already paid off most or all of your solar panel loan, you still have options to seek justice and potentially recover your investment. By taking proactive steps, consulting with legal experts, and documenting your case thoroughly, you can hold lenders and installers accountable for their promises.
If you’re facing challenges with your solar loan or panels, don’t hesitate to reach out to a legal professional who can help you navigate the complexities of your situation. Remember, you have rights as a consumer—and paying off a loan doesn’t mean giving them up.
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Neal Prevost, Trial Attorney With 31 Years of Experience
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"Took Care of Everything"
I felt completely stuck when Encor went out of business, leaving me with an unfinished solar system that didn’t work, failed inspections, and a loan I still had to pay. On top of that, they misled me about tax credits and savings, and I ended up paying more in taxes and insurance instead. Prevost Law Firm stepped in and took care of everything. Their team handled my case with professionalism and compassion, and I’m so grateful for the outcome. If you're struggling with solar issues, you need to call them. (Cara J.)
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My experience with Encor Solar was a disaster. They installed a system that didn’t work, used an unlicensed subcontractor, voided my roof warranty, and lied about the need for batteries during power outages. When they went out of business, they left me with an unfinished system and no way to fix the mess they created. Prevost Law Firm was amazing—taking on my case and delivering results that exceeded my expectations. They are true advocates for homeowners, and I’m so grateful for their help. If you're facing a similar situation, I can’t recommend them enough! (John S.)
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Would recommend 100%. Neal and his staff did an excellent job keeping me informed about the process every step of the way. He was able to get a settlement. He was a pleasure to deal with. (Gabrielle S.)
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Working directly with Mr. Prevost was excellent. Having worked with several attorneys in several fields regarding general real estate matters, I was very pleased with my specific niche case against UCC-1 filings regarding solar liens. Mr. Prevost knew exactly how things would play out in handling the matter and communicated each stage clearly with me as to what I should do and what his team would need from me in the process. (Cody McDonald)
"Changed Our Lives
We can’t thank Prevost Law Firm enough for what they’ve done for us. My wife and I felt utterly defeated and trapped by the $73,590 loan for a solar panel system that never even worked. Encor, the installer, went out of business before the system passed inspection, but Solar Mosaic still demanded we pay for it. As disabled homeowners, we felt taken advantage of and didn’t know where to turn.
From the first phone call, their team made us feel like we weren’t alone in this fight. They listened to our story, fought tirelessly on our behalf, and never gave up until they got results. Thanks to them, our $73,590 loan was completely canceled, and we were refunded every single dollar of the $28,493 we had already paid into the loan. Best of all, we got to keep the solar panels for free!
When we got the news, we were overwhelmed with relief and gratitude. My stroke has already made life challenging enough, and this financial nightmare had only added more stress. Now, thanks to Prevost Law Firm, we can breathe again and finally focus on getting the panels working for us.
To anyone dealing with a solar panel loan disaster: don’t wait—call Prevost Law Firm. They are incredible, and they truly fight for people like us. We are so grateful we found them, and we hope others in similar situations will reach out for their help.
Bart and Diana Daniels
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Nothing herein is intended, and does not, create an attorney client relationship and is for informational purposes only. The Prevost law firm is licensed in Texas and is licensed to practice law in all Texas state courts and in multiple Federal Courts and Arbitration in 46 states. Solar sales are governed by both state and federal law. The attorney client relationship will only be created after the parties enter into a signed letter of representation.