Your parent passed away. You’re grieving, handling the estate, trying to figure out what comes next — and then you get a call from a solar loan company.
“The account is past due. The estate owes $80,000. We need payment to release the lien on the property.”
You didn’t even know there was a solar loan. Nobody told you about a 25-year financing agreement. And now you can’t sell the house, can’t refinance it, and can’t move forward until this is resolved.
This is happening to Texas families more often than you’d think. And in many cases, the original solar sale was fraudulent — the homeowner was lied to from the very beginning.
How Did This Happen?
Here’s the typical story we see at our firm:
A solar salesman knocked on your parent’s door. They promised that solar panels would eliminate the electric bill, that there would be a big tax refund, that the panels would “pay for themselves.” Your parent — maybe elderly, maybe on a fixed income — agreed to the installation.
What the salesman didn’t explain clearly was the 25-year loan that came with it. A loan for $40,000, $60,000, sometimes over $100,000. A loan with a UCC-1 lien filed against the property. A loan with a due-on-sale clause that requires the full balance to be paid if the home is sold.
Your parent may not have fully understood what they were signing. And now that they’re gone, you’re left holding the bill.
Does a Solar Loan Transfer to Heirs?
The loan does not automatically transfer to you personally. You are not personally liable for your parent’s solar debt just because you inherited the property.
However, the estate may be responsible. Here’s how it works in Texas:
- The solar loan is a debt of the deceased person’s estate
- The UCC-1 lien remains attached to the property
- If the estate has assets (including the house), creditors can make claims against those assets
- The lien must typically be resolved before the property can be sold with clear title
In practical terms: you probably won’t have to pay the loan out of your own pocket, but the debt can eat into the estate’s value and block the sale of the home.
Can the Solar Company Force You to Pay?
They cannot force you to pay — you didn’t sign the contract. But they can:
- Maintain the UCC-1 lien on the property, blocking a sale
- File a claim against the estate during probate
- Continue to accrue interest on the outstanding balance
- In some cases, attempt to enforce a due-on-sale clause
The lien is the biggest practical problem. It shows up on title searches, and most buyers’ mortgage lenders won’t close on a property with an unresolved UCC filing.
What If the Original Sale Was Fraudulent?
This is where Texas law gives families powerful tools to fight back.
If the solar company lied to your parent — promised savings that never materialized, promised tax refunds they couldn’t receive, misrepresented what they were signing — then the original sale may have been fraudulent. And under Texas law, a contract procured by fraud is voidable.
The key legal protections available:
The Texas DTPA
The Texas Deceptive Trade Practices Act protects consumers from false, misleading, and deceptive business practices. If the solar company misrepresented the benefits of the system or failed to disclose material facts, your family may have a DTPA claim — even after the original purchaser has passed away.
DTPA claims can survive the death of the consumer and be pursued by the estate or heirs.
The Holder Rule
Here’s what most families don’t realize: you don’t just have claims against the solar company — you may also have claims against the loan company.
The Federal Trade Commission’s Holder Rule (16 C.F.R. § 433.2) requires that all consumer credit contracts contain a provision making the lender subject to the same claims and defenses the borrower could assert against the seller. That means if the solar company committed fraud, the loan company (GoodLeap, Mosaic, Dividend, EverBright, etc.) is also liable.
This is critical because many solar companies have gone bankrupt. But the loan company is still there — still collecting payments, still holding the lien. And the Holder Rule means they can’t hide behind the solar company’s misconduct.
What Should You Do?
If you’ve inherited a home with solar panels and a loan you didn’t know about, here’s what we recommend:
1. Don’t panic — and don’t pay anything yet. You may have legal claims that could eliminate the debt entirely.
2. Gather documents. Find the solar contract, the loan agreement, any communications from the solar company, and your parent’s electric bills (before and after installation).
3. Check the promises. Did the solar company promise your parent that their electric bill would go to zero? That they’d get a big tax refund? That they could sell back electricity? If so, did any of those promises come true?
4. Look at the timeline. When was the contract signed? Were both the purchase agreement and loan signed the same day (a THSA violation)? Was your parent elderly or on a fixed income when approached?
5. Talk to a lawyer who handles these cases. Solar loan fraud is a specific area of Texas law. A lawyer familiar with DTPA, Holder Rule, and THSA claims can evaluate whether your family has a case to get the loan cancelled, the lien removed, and potentially recover damages.
We’ve Helped Families in This Exact Situation
At our firm, we represent Texas families who are dealing with fraudulent solar contracts — including families who inherited homes with solar debt. We’ve secured loan cancellations, lien removals, and damage awards for our clients.
If your family is dealing with a solar loan after a loved one’s death, we’ll review your situation at no cost and let you know your options.
Call us today at (972) 516-4385 for a free consultation.
Offices in Allen and Houston, Texas. Serving clients statewide.