At this time, Climate First Bank does not support prepaid lease, TPO, or similar third-party ownership structures in conjunction with our solar loan products. Our financing programs are designed specifically for direct ownership, where the borrower owns the solar system being financed.
Our loan products are intended exclusively for customer-owned solar and energy storage systems. Any project structured as a lease is ineligible for financing through our platform.
Because SoCap, HDM, Thrive, Propel, Participate Energy, Sunnova, Sunrun, EverBright, LightReach, PosiGen operates as a prepaid lease provider, their structure would not align with the requirements of our loan program and loan agreement terms.
What Is a Solar Lease?
A solar lease is an arrangement where:
A third party owns the solar equipment, and
The homeowner pays a recurring fee to use the system rather than owning it outright.
Under a lease structure, the customer does not own the equipment, which conflicts with our program requirements.
Program Requirements
To be eligible for financing through Climate First Bank and OneEthos:
The borrower must own the solar system
Loan proceeds must be used to finance customer-owned equipment
Ownership of the system must transfer to the customer upon installation (or at funding, depending on contract terms)
No third party may retain ownership, lease rights, or control of the system
Projects that include:
Solar leases
Lease-to-own structures
Any agreement where ownership does not vest with the customer
are not permitted.
Why Solar Leases Are Not Allowed
Solar leases are not allowed because:
Our loans are structured as consumer loans for owned assets
Leases create conflicting ownership and lien interests
Third-party ownership is incompatible with loan collateral and underwriting requirements
Regulatory and consumer-protection standards require clear borrower ownership of financed equipment
Installer Responsibility
Installers are responsible for ensuring that:
Projects submitted are structured as customer-owned
Lease agreements are not offered, submitted, or paired with our financing
Customer contracts clearly reflect ownership of the system
If a project is submitted and later identified as a lease, this may result in:
Project rejection
Funding delays
Compliance review or account hold
Questions or Clarification
If you are unsure whether a project structure is compliant, please contact Installer Support before submitting the project.