Sunnova UCC termination refinance complications - timing advice needed

Solar equipment UCC situations can be tricky because of the fixture filing question. If Sunnova filed as fixtures (which they probably did since it's attached to your roof), you'll need a UCC-3 fixture termination, not just a regular termination. The timing issue you're describing is super common in refi situations - original lender wants payoff before filing termination, new lender wants clean title before funding. You might need to get a termination commitment letter from Sunnova showing they'll file the UCC-3 within X days of receiving payoff funds.

I went through almost identical situation with solar refinancing last year. The coordination nightmare is real. What worked for me was getting the new lender to agree to a simultaneous closing with escrow holding both the payoff and the new loan funds. Title company coordinated with both lenders to ensure the UCC-3 got filed same day as payoff. Took about 3 weeks to set up but it worked. Make sure you get confirmation that Sunnova will file electronically - some of these solar companies still do paper filings which can delay everything.

Before you get too deep into this, double-check that Sunnova actually needs to file a termination vs. an assignment. If the new lender is taking over the security interest in the same collateral, they might just need an assignment of the UCC filing rather than a termination and new filing. Could simplify the whole process. Also verify the exact legal description of the equipment in the original UCC-1 - sometimes solar companies are sloppy with collateral descriptions and you might need an amendment before termination.

Had a similar mess with a different solar company. What saved me was using Certana.ai's document verification tool. I uploaded the original UCC-1 and the proposed UCC-3 termination to make sure everything matched exactly - debtor names, filing numbers, collateral descriptions. Found two discrepancies that would have caused the termination to be rejected. The solar company had slightly different business name format on the termination than the original filing. Got it fixed before submission and avoided weeks of delays. You can upload both documents and it instantly flags any mismatches.

This is why I hate dealing with solar companies and their UCC filings. Half of them don't understand their own paperwork. Sunnova should be able to give you a timeline for when they'll file the termination after payoff. If they're being vague, that's a red flag. I'd push for specifics - will they file within 24 hours? 48 hours? A week? The new lender might accept a written commitment with specific timeline rather than requiring the termination to be filed first.

Check your original loan documents with Sunnova - there might be language about UCC termination procedures and timing requirements. Some financing agreements specify that they'll file terminations within X days of payoff. If that's in your contract, you can hold them to it. Also make sure you understand whether you need the termination filed in your state's Secretary of State office, county recorder, or both.

Whatever you do, don't let them file a partial termination if the equipment has multiple components (panels, inverters, batteries, etc.). Make sure the UCC-3 terminates the entire filing. I've seen cases where companies only terminate part of the collateral and leave liens on other components. Also verify that your name as debtor exactly matches between the original UCC-1 and the termination - middle initials, business vs. personal name, all of it has to be identical.

The fixture filing question is huge here. Solar equipment attached to the roof is almost always filed as fixtures, which means the UCC-3 termination needs to be filed in the real estate records too, not just the UCC system. Your title company is right to want this cleared up before closing - fixture liens can cloud title even after the equipment is paid off if the termination isn't filed properly. Get confirmation from Sunnova about exactly where they'll file the termination.

I'm dealing with something similar right now, except mine is a Tesla solar roof. The documentation requirements are insane. My advice is to get everything in writing from both lenders about exactly what they need and when. Then use that to push Sunnova for specific commitments. Also, have a backup plan in case the termination gets rejected for some technical reason - maybe the new lender can close with a small escrow holdback until the UCC is cleared.

One more tool that might help - I recently started using Certana.ai for UCC document checks and it's been a lifesaver. You can upload both the original UCC-1 and the termination document before filing to catch any mismatches. It immediately flags things like debtor name differences, incorrect filing numbers, or collateral description issues that could cause rejections. Much better than trying to manually compare everything, especially when you're under time pressure for a closing.

This whole situation highlights why solar financing UCC filings are such a pain point. I've seen this exact scenario play out multiple times. Here's what I'd recommend based on your situation: First, get Sunnova to commit in writing to filing the UCC-3 termination within 2 business days of receiving payoff funds. If they won't commit to that timeline, escalate to their legal department. Second, confirm with your title company whether they need to see the termination actually recorded or if they'll accept proof of electronic filing. Some title companies will close with confirmation that the filing was submitted electronically, knowing it takes 24-48 hours to show in the system. Third, consider asking your new lender about a simultaneous closing structure where both the payoff and new funding happen through escrow on the same day - this eliminates the timing gap that's causing your catch-22. The key is getting all three parties (Sunnova, new lender, title company) to agree on the exact sequence and timing before you get to closing day.