California property preparation guide
PACE or solar financing? Prepare for a California home-equity review
Your next move starts with the right questions. Compare the structure, costs, and tradeoffs before you choose.
Published by Equity Edge Lending Inc.
Updated September 23, 2026 · Primary sources
The short answer
Before a home-equity or refinance review, identify whether the home has a PACE assessment, solar loan, lease, or power purchase agreement. Gather the actual contract and current obligation details, then ask the proposed lender or provider what must happen before closing. Solar panels alone do not establish which arrangement applies—or whether it is acceptable for a particular program.
First published September 23, 2026 · Company NMLS #2808857
Identify the agreement, not just the equipment
The California Public Utilities Commission explains that PACE financing is repaid through the property-tax bill and places a lien on the home. That can complicate a sale or refinance. PACE is an obligation to repay, not free improvement funding. CPUC: Solar Consumer Protection Guide.
The California Public Utilities Commission distinguishes system purchases financed with cash or a loan from leases and power purchase agreements. With a lease or PPA, the provider owns the system; a PPA charges for the electricity it produces. Review the contract rather than treating every solar arrangement as the same type of debt. CPUC: Solar Consumer Protection Guide.
Start with your own documents:
| What you find | What to identify before the review |
|---|---|
| PACE assessment | Administrator, assessment agreement, current tax-bill entry and contact for a dated payoff statement |
| Solar loan | Creditor, loan agreement, remaining obligation and any security or title documents |
| Lease or PPA | Provider, signed agreement, current payment or pricing terms and the section addressing a sale or refinance |
| System bought outright | Ownership records and confirmation of any separate financing still outstanding |
Do not guess from the installer name. Installation, financing and ongoing servicing may involve different parties.
Make a transaction review record
Keep a private record with one line per obligation. For each, note the document date, party responsible for responding, question still open and written answer. Start with these fields:
- Property address and intended transaction: equity access, refinance or sale.
- Agreement type and the legal names on it.
- Current payment, balance or assessment information, with its as-of date.
- Where the obligation appears in your statements or property documents.
- Whether a payoff, consent or another document has been requested.
- Who will confirm that the required action is complete.
Ask the title or escrow professional to explain any recorded item you do not understand. Keep the original contract and all amendments together. A verbal explanation is useful context, but it should not replace the documents used to clear a closing condition.
Questions to resolve before counting on proceeds
Bring these questions to the proposed lender or equity provider and the party administering the existing agreement:
- Does the proposed program accept this exact arrangement for this property and transaction?
- What documents are needed to make that decision?
- If payoff is required, which party issues the amount, how long is it valid, and which charges are included?
- If consent, release or subordination is requested, who must supply it and how is completion verified?
- Will any payment obligation continue after the transaction?
- How will the final net proceeds reflect any required payoff and costs?
Do not promise yourself a spending amount from a preliminary gross advance. Have the reviewer explain the final deductions. A conditional offer is not proof that a property-related condition has been cleared.
Keep the financing decision separate
Resolving a solar or PACE question does not establish credit, income or property eligibility. It removes one uncertainty from the review. An HEI also requires a separate assessment of its future settlement; use the California HEI offer worksheet if that structure is under consideration.
For a broader comparison, read California home-equity options. If you want an initial conversation, use the existing contact page and share your goal and agreement type. Keep contracts, tax bills, account numbers and other sensitive documents out of the public form; confirm a secure delivery process with the reviewer.
About this guide
Prepared for Equity Edge Lending Inc. with automated editorial assistance, based on the public consumer sources linked above. No licensed-professional review is claimed. General education only, not a loan commitment or individualized legal, tax or financial advice. Your contracts and the proposed program require individual review. Report a correction.
Frequently asked
Common questions
Does every solar agreement create a PACE assessment?+
No. PACE, solar loans, leases and PPAs are different arrangements. Identify yours from its documents before asking how it affects a proposed transaction.
Does this checklist mean Equity Edge offers a PACE-payoff loan?+
No. It is a preparation guide. It does not establish that Equity Edge or a particular lender offers financing for your situation.
Should I pay off an obligation before asking about the new financing?+
First obtain the requirements and explain your proposed plan to the relevant professionals. This guide does not recommend moving money or paying an obligation solely to pursue an unconfirmed offer.
Sources and further reading
This page is general education, not legal, tax, or financial advice, and it is not a commitment to lend. Program availability, terms, and underwriting vary by lender and by situation. Review any agreement with qualified legal, tax, and financial professionals before signing.
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