Transferring Ownership of Your Solar System

When Tesla customers sell their homes, we transfer the solar agreement to the new owner ~98% of the time. In a small number of cases our customers elect other options as outlined in their agreement.

The home sale process should be initiated as soon as you are in contract with a buyer.

1. Seller Contact
   The seller submits a request to initiate the solar agreement transfer with the buyer, including escrow details.
2. Assuming Party Contact
   The assuming party is contacted to review the obligations of the agreement and address any other questions.
3. Transfer Agreement Signing
   The transfer agreement is sent to both the assuming party and the seller for signatures via AdobeSign.
4. Title Document Release
   We provide a title document release upon receipt of a signed transfer agreement if there is a UCC-1 or Notice of Solar Contract recorded on title, and the $150 document processing fee has been paid (if applicable). A UCC-1 fixture filing is not a lien — it is only a notice that the solar system is the property of Tesla. Any amount due, such as a current outstanding balance or prepayment, is due before or at the time of closing.
5. Confirmation of Closing
   When the purchase of the property is complete, the seller must notify us to confirm closing by escrow or closing representative.
6. Update to New Owner
   Systems are updated to reflect the new owner under the solar agreement.

You will receive a final invoice within two billing cycles after Close of Escrow on the home. This final amount will include any energy produced for a Power Purchase Agreement (PPA) or monthly payments incurred for a lease through Close of Escrow. Refer to your Energy Products Order Agreement to confirm your monthly payment type.

The solar system works in tandem with the local utility company through a process called Net Energy Metering (NEM). During the day, you will use all the electricity the system produces as your primary source. If you require more electricity than what the system can provide, you will pull that from the local utility at their regular rates. If on the flip side, you use less electricity than what the system produces, the excess will flow to the utility as a credit that can be used at a later date. Every utility handles these credits a little differently, so we always recommend reaching out to them directly if you have questions about their specific NEM policy. You can learn more about Net Energy Metering.

No. Transferring a solar agreement into your name is a simple process. Our Property & Title team is happy to answer your questions about the solar system on the home and the transfer paperwork can be sent digitally to sign. 

1. Seller Contact
   The seller submits a request to initiate the solar agreement transfer with the buyer, including escrow details.
2. Assuming Party Contact
   The assuming party is contacted to review the obligations of the agreement and address any other questions.
3. Transfer Agreement Signing
   The transfer agreement is sent to both the assuming party and the seller for signatures via AdobeSign.
4. Title Document Release
   We provide a title document release upon receipt of a signed transfer agreement if there is a UCC-1 or Notice of Solar Contract recorded on title, and the $150 document processing fee has been paid (if applicable). A UCC-1 fixture filing is not a lien — it is only a notice that the solar system is the property of Tesla. Any amount due, such as a current outstanding balance or prepayment, is due before or at the time of closing.
5. Confirmation of Closing
   When the purchase of the property is complete, the seller must notify us to confirm closing by escrow or closing representative.
6. Update to New Owner
   Systems are updated to reflect the new owner under the solar agreement.

No. You simply pick up where the original customer left off within the agreement.

Contact the Property & Title team. Tesla is the leading company in the industry with a team focused exclusively on handling agreement transfers. Our team is staffed with experts from the real estate industry who are familiar with the entire home sale process, from listing through escrow, and have handled thousands of transfers. Once we have received permission from the initial contract holder, we will share the details of the solar agreement and answer any questions you may have.

If your lender is requesting documentation regarding the solar system, notify the Property & Title team so they can direct your inquiry to our Lender Relations team. Common requests include, but are not limited to:

• A copy of the solar agreement
• Termination of the UCC-1 Financing Statement on title

The next step is to get approval from your local utility to activate your Tesla energy products. Your Tesla Advisor will contact you directly to obtain this information as needed.

Once the utility has granted permission for your system to operate, Tesla Customer Care will contact you to help turn your system on. If you receive an email, door hanger, or tag on your electric meter regarding your solar system, contact the Customer Support team. Once you have received permission to operate, you can download the Tesla app to monitor your system in real-time, anywhere.

Tesla or your utility will send electronic documents for you to sign, which will need immediate signatures. Every utility has a slightly nuanced process for granting permission to operate.

Installing solar panels on your roof allows you to generate your own electricity and pay less to your utility. Your electricity costs after solar will depend on how much electricity your solar panels generate, how much electricity you use, and how much your utility charges for electricity. Visit Tesla Energy support to learn more.

Tesla files a UCC-1 financing statement to protect our interest in our personal property, the solar system. Anyone who might perform a title search on the address where the system is located will see the UCC-1 which indicates that Tesla’s personal property is installed on the home. This filing protects our rights as the system’s owner; however, does not make claim against the real property. If the lender that holds the mortgage on the real property forecloses on our customer’s home, the UCC-1 filing protects our interest in the solar energy system and prohibits the lender from taking ownership of it.

• You record directly with the county: Print the attached document and submit to the county. In some cases, a realtor or mortgage broker may be able to do this for you. Once the document has been recorded, email the digital copy of the recorded UCC-3 to recordings@tesla.com for our records (preferred method). Alternatively, you can mail us a copy below:
  Tesla, Inc. Attn: Recordings
  12832 S. Frontrunner Blvd., Ste. 100
  Draper, UT 84020
• We record on your behalf with the county: Send an email to recordings@tesla.com stating your request for us to record. Allow approximately 15 to 20 business days for the document to be recorded and for a copy of the recorded release to be forwarded to you via email.

Note: Due to the pandemic, county offices may be temporarily closed or have limited hours. Turnaround time to receive your recorded document may exceed the timeframe mentioned.

We will automatically begin the refiling process 60 days after sending you this release or initiating the recording of the release ourselves. If this transaction takes longer than 60 days, or if this transaction cancels, notify us to avoid additional filings.

Leases, PPAs and our MyPower loan contracts have existing UCC-1 Financing Statements on title. Once the MyPower loan is paid off, the UCC-1 is removed. Solar systems purchased outright do not have a UCC-1 on title from Tesla.

Solar Loans through third-party financing companies may have a UCC-1 Financing Statement on title. You will need to work directly with that lender to address the UCC-1.

No. What you’ll find on the title of a home with a Tesla solar system is a UCC-1 Financing Statement (sometimes referred to as a fixture filing). A UCC-1 financing statement is not a lien against the home.

Yes. We are aware that lenders prefer to be in first position on the title of the home or not to see anything on the title entirely so it’s common practice for us to either temporarily release or subordinate the UCC-1 for financing purposes. Whether we temporarily release or subordinate is determined by the type of solar contract. There may be a document processing fee associated if you require the UCC-1 to be released or subordinated for a financial transaction. 

Note: The account does need to be in good standing prior to us fulfilling a release or subordination request.

A Notice of an Independent Solar Energy Producer Contract is a title notice in the state of California. When the PV system installed on a home is owned by a third party, the third party is required to file this notice on the real property. This filing will not interfere with real estate transactions. When the homeowner is changing, the document will need to be updated to reflect the new owner name and so the notice will be temporarily released. Tesla will not release the Notice of Independent Solar Energy Producer Contract from title in the event of a refinance as the recorded filing explicitly states: “This recorded notice does not constitute a title defect, lien, or encumbrance against the real property.” If needed, we can provide you with a letter of explanation to address any lender requirements associated with the Notice of an Independent Solar Energy Producer Contract.

Pursuant to your solar agreement, Tesla files a UCC-1 financing statement on the title of the real property on which our PV system is installed to provide notice of our ownership interest in the PV system. The customer’s real property is not included in the collateral of this filing. In California only, we also file a Notice of an Independent Solar Energy Producer Contract as required by the California Public Utilities Commission (learn more details). If a customer requests that either of these be temporarily released or subordinated, Tesla will facilitate at a cost of $150.00 (the “Document Processing Fee”).

If your lender is requesting documentation regarding the solar system, notify the Property & Title team so they can direct your inquiry to our Lender Relations team. Common requests include, but are not limited to:

• A copy of the solar agreement
• Termination of the UCC-1 Financing Statement on title

You can access your Energy Products Order Agreement in the ‘Order Documents’ section of your Tesla Account. If you are unable to view your agreement, contact our Customer Support team.

Lease: The customer pays for the use of the system and the services that come with it at a fixed monthly payment. Tesla owns and maintains the system.

Power Purchase Agreement: Also referred to as PPA, the customer pays for the power produced by the system at a certain kWh rate, which may increase slightly each year. Tesla owns and maintains the system.

MyPower Loan: The customer financed the purchase of a PV system through a loan from Tesla and pays fluctuating payments over a set term. The customer owns the system. Payments are calculated based on the system production, but they are applied toward the purchase of the system.

Purchase: A cash contract is a full outright purchase of a solar system. The customer owns the system. Sometimes this may be financed by a third-party lender.