Long Island Homeowners Raise Concerns About Solar Lease Agreements

When a Lease Becomes a Complication

On Long Island, an investigative report by Newsday examined the growing number of homeowners who signed long-term solar leases and later found themselves facing unexpected challenges.

Unlike traditional solar loans, lease agreements and power purchase agreements (PPAs) allow homeowners to host solar panels owned by a third party. In exchange, they agree to make fixed or escalating payments over time.

For some homeowners, these arrangements worked as intended.
For others, complications emerged — particularly during home sales.

The Home Sale Problem

One recurring issue involved property transfers.

Homeowners reported difficulty selling their homes because:

Buyers were reluctant to assume lease obligations.
Transfer approval required credit checks.
Lease buyout costs were substantial.
Closing timelines were delayed.

In some cases, sellers felt compelled to prepay or buy out the lease to complete a sale.

The long-term nature of lease agreements — often 20 to 25 years — can outlast a homeowner’s time in the property.

Billing and Escalator Clauses

Lease agreements frequently include:

Annual payment escalators
Minimum production thresholds
Complex buyout formulas

Some homeowners reported not fully understanding how payments would increase over time.

Even modest annual escalators can result in significant cost differences over two decades.

Transfer and UCC Filings

Third-party ownership structures often involve:

UCC filings attached to the property
Transfer approval requirements
Buyout clauses tied to fair market value calculations

When homeowners first sign, these provisions may feel distant or hypothetical.

Years later, when selling becomes urgent, those clauses take on new importance.

Lessons From the Investigation

The reporting highlighted how:

Lease agreements differ significantly from loans.
Resale considerations should be evaluated upfront.
Escalators materially affect long-term cost.
Buyer assumption risk is real.

Many homeowners interviewed expressed that they would have made different decisions had they fully understood resale implications.

If You’re Struggling With a Solar Lease

If you’re facing:

Difficulty selling your home
Unexpected lease buyout costs
Escalating annual payments
Buyer rejection of transfer

It may be time to carefully review:

Your lease transfer clause
Escalation schedule
Buyout formula language
UCC filing status

These details determine your options.

A Grounded Next Step

Help Solar Exit works with homeowners trying to untangle long-term solar lease agreements.

We review contracts and outline possible pathways — whether renegotiation, buyout evaluation, or structured exit strategies.

You don’t need to assume you’re stuck.
But you do need clarity.

Read the Original Coverage

Full investigative reporting: https://projects.newsday.com/long-island/solar-panels-leases-complaints/