What Happens If You Stop Paying Your Solar Loan?

Short answer

Stopping payments does not cancel a solar contract. Expect late fees, then default, collections and negative credit reporting that can last seven years. Depending on your agreement, the lender or owner may also enforce a lien or fixture filing, and a loan secured by your home can put the home at risk.

What typically happens, in order

Late fees and calls. Most agreements charge a fee once a payment is late and start collection contact.
Credit reporting. Lenders and lessors can report late payments to the credit bureaus.
Default. After the number of missed payments your contract specifies, the full balance may become due.
Collections or a lawsuit. The account may go to a collection agency, or the company may sue for what is owed.
Action against the equipment or property. Depending on the paperwork, the company may try to enforce a lien or fixture filing.

How long it stays on your credit

Under the Fair Credit Reporting Act, collection accounts and charged-off accounts generally cannot be reported once they are more than seven years old. The seven years start 180 days after the delinquency began. The CFPB notes that most negative information stays for about seven years.

Liens, fixture filings and your home

Solar equipment attached to your roof is generally treated as a fixture. Solar lenders commonly record a UCC fixture filing in your county property records to protect their interest. A fixture filing can complicate a sale or refinance until it is released.

If you default, a secured party whose fixture interest has priority may remove the equipment, but it must pay for any physical damage to the property caused by removal. If your solar was financed with a home equity loan or line, the loan is secured by the house itself, which raises the stakes.

PACE financing works differently. It is repaid through your property taxes as an assessment on the home, and the FTC warns that not paying can lead to foreclosure. A CFPB rule finalized in December 2024 treats PACE financing as credit under federal lending law and adds ability-to-repay requirements.

Leases and PPAs

If you lease or have a PPA, the company owns the panels. Missing payments is a breach of the agreement, and the contract usually spells out late fees, acceleration and the company's right to remove its equipment. Read those sections before you decide anything. Our lease vs loan vs PPA guide explains the differences.

Moves to make before you skip a payment

Check for a cancellation or rescission right. If you signed recently or never got the required notice, see cancellation periods by state.
Find out why the payment changed. A jump often means the loan re-amortized after a prepayment was not made.
Ask about hardship options. Call the lender or servicer and ask, in writing, about deferment, modification or a payment plan.
Document misrepresentation. If you were misled, follow the steps in our red flags guide.
Get your options reviewed. Compare every route in how to get out of a solar contract.

Questions people ask

Can a solar company take my house if I stop paying?

For most solar loans and leases the company's claim is against the equipment and you personally, not the house itself. The risk is higher if your solar was paid with a home equity loan or through PACE property tax financing, where nonpayment can lead to foreclosure.

Can they remove the panels if I stop paying?

Possibly. A lease or PPA company owns the panels and contracts usually allow removal after default. A lender with a priority fixture interest may also remove the equipment but must pay for physical damage caused by removal.

How long does a defaulted solar loan stay on my credit report?

Generally up to seven years. Under federal law, the period starts 180 days after the delinquency began.

Will stopping payments help me get out of the contract?

No. Missing payments does not cancel a contract and can weaken your position. Explore cancellation, rescission, buyout or a review before you stop paying.

Solar loan payments: what happens if you stop paying