Leased Solar Panels FAQ
Leased solar panels are like using an on-site utility* where they install, own & operate an attractive-looking solar system on your roof at no cost to you. They make their money by selling the power to you at a 10-20% discount below what you’re paying today, and they keep the incentives, tax credits and environmental attributes of the power generated (where available). In other words, you get cheaper power and energy security, and they add a mini-utility power station to our books that pays us long-term cash flow.
BENEFITS to The Customers:
- You remain connected to your existing utility: their system works in tandem with your utility, lowering your bill whenever the sun is shining.
- Discounted electricity: initially 10% below your existing power rate per kWh (kilowatt hour).
- Each year, your rate per kWh increases by only 1.5% per year (compared to average annual utility rate increases of 10% per year since 2000 in most states, including California). So after just a few years, your electric rate should be 20-40% lower than your neighbors!
- No installation, permitting, design fees or any other up-front costs. Just pay them a good faith deposit equal to your 1st two (2) months’ estimated bills (roughly 10% less than two months of your existing electric bill). Note that this policy is consistent with how most utilities require a modest deposit for new accounts.
- No cost at the end of the 20-year term: they remove the solar panels and restore your roof to the condition of the surrounding unaffected roof or better. Or, you can purchase the solar panels from them for pennies on the dollar.
OVERVIEW:
- The solar panels shall be designed, permitted, financed, installed, maintained and operated by the leasing company.
- To reiterate, there is no cost to add solar panels to your property except for the initial deposit.
- Minimum rental agreement length: 20 years (30 years in some states with weak solar incentives).
- Warranty on solar panels: 25 years.
- Expected life of the solar panels: 40-50 years+.
* They’re not technically a utility and don’t use regulated transmission/distribution lines to deliver power to you; the solar panel leasing company uses a output-based rental agreement.
