Solar PPAs Contain Terms Nobody Explained at Signing
Homeowners are struggling to understand and manage solar agreements, particularly Power Purchase Agreements (PPAs) and contracts from companies like Sunrun. They face inconsistent information from installers, confusing contract language, and difficulties in purchasing systems, leading to uncertainty about costs, benefits, and long-term obligations.
SOURCES (60)
“HI Solar Reddit, My wife and I are newly married and are (trying) to sell her home. She had solar and batteries installed almost two years ago. We were gathering our paperwork in preparation to sell and while contacting PG&E found out we do not…”
“I'm buying a home with large solar array (50 panels) on an old roof (needs to be replaced in next 5 years). The solar is on year 7 of a Sunrun 25 year lease with escalating payments each year (2.9% increase each year). Sunrun says "fair market value" to buy out the lease would cost $48K. If I buy out, it doesn't seem that the R&R cost will be much lower than with sunrun, and a 2.9% increase is still less than the increase I'm likely to face on utilities without panels (”
“I am sure many new solar enthusiasts have run into the prepaid lease options, where it allows you to still take advantage of the federal tax credit. I am curious if there are any downsides with the prepaid lease agreement. My understanding is that even if the option to purchase is unfavorable, I can still keep the lease intact and still get the same solar benefits as if I purchased the system outright. The only difference is I do not "own" the system so selling may cause more paperwork”
“I understand that there are certain price adders, such as FCMs (roughly, value x WACC), risk adjustments, and a terminal value adjustment. I’m interested in understanding how utilities - specifically in Michigan - price ($/MWh) *risk adjustments and terminal value adjustments* in the PPAs they execute. Let’s call it solar, for simplicity. Q: How do risk adjustments and terminal value adjustments get calculated? Are there hands on examples of this happening in filings, with data available? I’ve s”
“Question up top: My question is whether or not this is a good deal or am I about to get screwed with a frankenstein repair and I should just buy an entire new system? Are these prices reasonable? This is Alabama btw So it looks like I'm out of pocket approx $4500 for a new coil and condenser but not an entirely new system with warranty and whatever else (furnace, air handler im guessing, ductwork, etc) Context is this is a rental property and it has a Choice Warranty home warranty on it - I”
“Hi all, my partner and I are interested in buying a home with paid-off leased solar panels. I want to be specific: the panels are still owned by another company, but they are paid off. This is through SunRun, which I've done enough research online to know that everyone says to run away from this company—but are there still risks if the panels are paid off? The roof was redone at the time of the panels being placed, which was about a year ago. The current homeowner is an elderly gentleman who”
“Hey solar folks, long time lurker, first time poster. Our neighbor in our condo community recently had Sunrun installed and is paying $103 bucks a month for her lease + whatever extra electricity she uses. On paper it sounds great considering we live in CA and PG&E costs are through the roof, but I’ve seen a lot of mixed reviews in this sub, so curious if any other Californians have gone through Sunrun’s lease program? From what our neighbor is saying, it’s made a significant dent in her mon”
“Hello community, first time poster. I’m looking to install solar and have a question regarding PPA lease. I’m working with a local company in SoCal and am looking to pay cash for my solar set up. Since the fed rebate has expired, they offered a PPA lease rebate where the lease company takes the solar credit and passes the savings on to you. Apprently the deal is that I pay all cash for the system up front and the PPA is set up with no monthly payments. I’m happy with the cash price which is why”
“I was wondering if I could get some opinions as to whether this is a good idea/value or not. To start with I have always been very against solar leases because they tend to steal a lot of the value from a solar install and cost the customer more money over time. However, now that the federal incentives have ended I guess some companies have been coming up with clever ways to work around this. A local company is offering a solar lease program where they own it for the first 5 years, pass through”
“We’re considering making an offer on a house that has a sunrun system installed on it, I couldn’t get much info on the system when we saw the house; it has 22 panels installed on the roof, and it doesn’t appear to be tied to the power companies meter. The system has its own meter directly beside the power company’s. It has this style inverter on the side of the house(sorry eBay photo). Per the listing, the seller will be paying off the system at closing. Any way to tell how old the system is, an”
“We have all heard and know people who have been taken advantage of in small and big ways. Lease agreements that are nearly impossible or very expensive to get out Loan payments that have huge hidden fees. Or simply bad designs and/or bad construction and not come back to repair. Even as simple as not telling the owner they need to cut trees. End result is a strong and lasting image of Solar as the biggest scam of all time. QUESTION: Should there be a regulation that requires a third party review”
“Sorry if already answered - searched lots of posts here and across other subs and can’t find my exact situation. Live in CA, PG&E account is in landlord’s name but is specific to our unit. NEM2.0 plan. He takes PG&E bill, removes the generation credit, as well as adds the exports multiplied by a market rate back on to the bill. This takes our PG&E bill from around $75 with the generation credit as well as reduction of net usage, to $200+. Only verbiage in lease is: “For electricity u”
“Parents got a 20 year PPA in 2013, when I took over the utilities, I realized how bad they were and plan on leaving when the contract finishes. ANYWAY, they came by in June because they noticed my system was under performing. The tech said some panels were broken and had to be replaced. It will all be covered though. Got the quote today. $310 installation cost AND I have to repair any roof damage before they install the new system. No thanks submitted by /u/tassdatass [link] [c”
“Location: Arizona In-laws signed a 20-year contract with solar(5 years left), that had no buyout option and only had option for sale of house for transfer of solor lease. In-laws have reverse mortgage that is upside down. Bank won't allow sale of house. Telsa wants system to transfer to new owner when the house is sold. Can somebody recommend a course of action. Mother-in-law needs money for memory care assisted living. She doesn't understand any of this. After spending 10 hours on the p”
“Looking to purchase a property with fully paid off solar panels purchased from Sundar Solar Does the monthly payments look reasonable? Any and all info is highly appreciated submitted by /u/winsomeStep [link] [comments]”
“i agree . roughly $6k for a full job $2k for a front job ... 99% you will not recoup this at resale.”
“So I purchased a home and it came with solar panels on it. It was listed as an amenity and a small boost into us purchasing the house (we are happy without them being there, but it is still a nice plus). Anyways I tried looking into how to get it transferred into my name so I can see usage and information of what we are producing/giving back to the grid but thats where my issues start. My solar had an enphase label on them so I tried going on their website and beginning the transfer of ownership”
“I’ve signed 25y contract and panels and battery have been installed. Installation has occurred but not permission to turn on yet. Reasons I want out 1. Sloppy work 2. Sales person misled and misrepresented things 3. Upon further review, I’ve learned Sunrun sucks I know I’m not giving a lot of info, just wanted to hear some success stories out there if they exist. Thanks submitted by /u/Stock-Marionberry692 [link] [comments]”
“Looking for advice as to what route to pursue and if these are solid deals? Local installer, very reputable though lease is through Sun run of course. 6 year buy out might save me $2-3k vs outright purchasing—maybe? I’m not a mathematician. Purchase and lease PPA are both REC Alpha panels with IQ8X inverters and 1 TW3. Home is 3600 sq ft with two AC units and I do own an EV. This is my forever home, roof is 10 years old, located in Illinois in the western suburbs of Chicago. submitted by &”
“Hello everyone, I recently purchased my first home and got a call from a salesperson for unicity solar. The deal he offered is below. Not sure if this is a scam if i should run, or if i should accept this and go with it. Equipment: Panel Manufacturer REC,REC Panel Model REC460AA Pure-RX-DC, REC460AA Pure-RX-DC Panel Wattage 460 watts, 460 Watts Inverter Manufacturer Enphase Inverter Model IQ8X-80-M-DOM-US They said they would install 18 panels on my roof, which would produce 8.280 KW if my math”
“During escrow, I completed and signed their transfer agreement, provided all of my LLC information, financial/assets information they requested, etc. My understanding was that everything was good to go for the transfer. We closed about two weeks ago, and since then I've been trying to get access to the account or even get a straight answer about the status of the transfer. I've called probably five times now and have actually spoken with representatives each time. Every conversation is b”
“Has anybody successfully fought their solar contract? Either from some hidden fee’s, or the “economics” between the solar company and financing company, or the price inflated being inflated due to the financing ? the cash price and the financed price in my contract seem very far apart, and i sense being taken advantage of. submitted by /u/RipDapper [link] [comments]”
“This is my proposed solar lease agreement. is this a good deal? They are also removing a dead tree in my back yard and possibly upgrading my breaker panel. submitted by /u/Past-Lengthiness3785 [link] [comments]”
“Without going into too much detail because I fear poking the Sunrun legal dragon, I signed a 25y PPA with 0% escalator. There were many inconsistencies with what the sales person told me verbally and textually that upon further review contradict what’s in the contract. DO NOT TRUST SALES PERSON - GET EVERYTHING IN WRITING IN OFFICIAL CONTRACT! Apparently there are clauses in the contract that say whatever he says is non-binding. System is installed but not PTO (permission to turn on), so they ha”
“Same story as always. Myself and my wife have a solar lease with Sunrun. It came with the house purchase and we didn't have enough money at the time to buyout the lease. As such I'm looking at ways to go through with the buyout before the 6 year mark in our contract. I noticed that Sunrun allows for a new owner of a house an opportunity to buyout the lease or continue with it. My question is: could my wife transfer the property into my name (I'm not on the deed) and as the new owner”
“Are there any safeguards in place for protecting buyers from ineffective solar panels on a house they're purchasing? L submitted by /u/GigiBrit [link] [comments]”
“Hello, We are buying a ~2,000 sq ft home in NJ with an existing Sunrun solar lease. + ~$60/month + 0% annual escalator + ~6.5 kW system Lease started in 2020 / 25-year term Trying to decide between: + Assume/keep the lease + Buy out the system + Pay the termination/removal fee For anyone who has dealt with Sunrun, what are the pros/cons of each? Any hidden costs, especially for roof replacement, maintenance, selling the home later, or dealing with Sunrun? submitted by /u/ImaginaryStr”
“Covar Law Group vs. solar consulting/cancellation company — looking for experiences We’re dealing with a $10,000 solar-related dispute and are deciding between hiring **Covar Law Group for a $10,200 flat legal fee** versus using a solar consulting/cancellation company that would be less expensive, quoted at 4200. Covar’s agreement says the0 covers the legal representation within the agreed scope, including things like negotiations, mediation, arbitration, and litigation if necessary. Th”
“I'm curious as to what others have experienced. As for myself, my contractor did NOT say: 1) Think about your yearly operating costs: increased property taxes, increased insurance, putting aside money for inverter replacement, putting a small amount aside for repairs/maintenance 2) You can't use your own power. The utility's subsidy (I got just over $4K) requires 100% of all power be sent back to them. 3) For that 100% of power you send to utility, the utility will pay what it choose”
“im being offered solar panels and equipment at no upfront cost simply because i own my own house is this right or a scam i already have photovoltaic panels but i am about to lease an electric car so the solar panels would help submitted by /u/jazzhands1971 [link] [comments]”
“Its not free, there is a monthly charge and you have to use their provider. Its $15,000 to cancel and its attached to the title of the house. So say goodbye to leaving sustainability to your family. It can't power the house with HVAC, washer/dryer,, fridge, and microwave at the same time AND its not guaranteed to work. Its a remote kill switch. If they can't get access to the battery, there is a charge. They collect data (duh) on you and usage while sharing it. They market it to poor peo”
“Looking for some help evaluating a quote. Here are some details, since I didnt get a clean breakdown in one page: Location: IL (ComEd) System size is basically maxed out for my roof (hence the 67% offset) Mainly looking for some outage protection during storms, and to reduce our peak usage (Currently on TOU rates - avg bill is $500-$700 in summer). System: Enphase microinverters and combiner Panels: 41x REC460AA Battery: 2x Franklin aPower (30kWh total)) Avg Daily usage: 100kWh (2x EVs, AV Gear,”
“Location: Southern California Issue: Sunrun solar contract. I've had my solar system for a few years now, and haven't seen much in the way of savings. I'm paying for two monthly payments on top of electric bills. I've recently seen a lot of advertisements for lawyers going after solar companies on your behalf to get out of the contract or get money back. My question is, are any of these actually legit? And should I pursue trying to exit my solar contract? submitted by”
“We purchased a house in California with a solar lease from Sunnovan, which later got bought by Spruce. They began charging me until I contacted them and informed them that I couldn’t see any production. Interestingly, their website explicitly states the estimated production. Therefore, they were charging me for what they believed my system was generating. Fortunately, this issue has been resolved, and I’m certain that I’m not producing any electricity. However, they don’t seem interested in send”
“Owned outright. You’re fine. It’s an asset, adds value, nothing to do. Solar loan. There’s usually a UCC-1 fixture filing sitting on your title. Gets paid off or handled at closing like any other lien. Annoying but routine. Lease or PPA. This is the one. You don’t own the panels, you’re renting them or buying the power. Buyer has to qualify with the solar company and formally assume the contract. Which means a credit check, paperwork, and a company that has to actually respond to you. PACE or HE”
“I have purchased two systems outright. A 9.9 (2017) on a previous property and an 8.8 (2021) array on our house now. Paid cash, received the full federal credit plus Illinois SRECs. Both netmetered systems with 1:1 kwh utility credits for any overproduction. The math worked for a positive ROI. I just had a friend tell me about a door-to-door solar salesperson pitch. The solar company would replace his old and failing roof, mount a 15kw array with full battery bank with grid tie backup. I estimat”
“Hello, recently purchased my first home in south jersey about a month and half ago go, and just received my first electric bill from the electric company. I assumed a 3 yr old sunnova lease (sunstrong) for a 6.075kw solar system @$86.60 a month ($78 with autopay and no annual increase in payment) with an estimated yr1 production of 8,660kwh (assuming im reading the paperwork right. One of my panels glass appears to be shattered and caved in slightly, and after a phone call with sunstrong they se”
“No shit, which is why I said the office is also 30 miles from court. Home to court is not covered, but court to office is. But practically speaking, there is no way to verify one way or the other Weather I stopped at the office on the way to court.”
“Got a call yesterday from GoodLeap [they financed a new roof two years ago, I paid it off in full, didn't want a car and roof payment.] Said I qualify for a solar energy plan: 3rd party installs the panels [they own them, not me, and then they are responsible for repairs, maintenance]. GoodLeap, having looked at my electric bill and the images of my property, confirmed that my roof/property is capable of generating the power I need here, and would then sell me my electric at a *fixed for 25”
“We've been looking at doing solar for our home for the last several months. In Ohio, there haven't been any prepaid lease (until now) to take advantage of the commercial tax credit. I received my first offer today with this setup. Essentially after year five the panels transfer to me as the owner. 37 REC Alpha Pure 440 panels with Enphase iq8x microinverters. Out the door, the cost is $32,000 with no prepayment penalty. I keep the srec credits, and I can sell them for around $2,000. What”
“So we got the smart meter installed in January this year and since then I have been getting an extremely high electric bill. In the five years we have had solar panels through Sunrun I have maybe paid one bill a year during the winter months. So I started printing out my electric bill and noticed discrepancies between what they Sunrun reports we produce vs what RIEnergy says they are receiving from us. For reference, we have 36 solar panels!! One example June 22- July 23 . Sunrun reports we prod”
“Almost a year ago I reached out to this sub to review pricing to have a big solar project completed on my property. No one mentioned any red flags or raised any real concerns. That combined with my own research and general expectation that the company would do what it promised, I moved forward. The goal was to have the system installed prior to the expiration of the 2025 tax credit and with that in mind I told SEES that I would pay half of the deposit to get in line and the remaining half when a”
“Do only customer who purchase systems get the property tax abatement, or do you also get it for leasing? Hard to get a clear answer online submitted by /u/norcalny_ues [link] [comments]”
“To give some info to start, I'll mention it's a 25yr prepaid lease, so no payments apart from the initial, thus no interest. ~38k upfront, 6k state incentives = 32k. "Replacement cost 53k. Lease terms 25yrs, includes tesla battery 10yr lease. FMV: Can be bought earlier than 25yrs at any time after 6yrs, at a rate to be determined, and a third party jumps in if no figure can be reached without help. There are another 30 pages I'll go through tomorrow, but I THINK that's the i”
“Edit: I also guess I'm asking - would you buy this home if it meant you were taking on the lease? Is that a bad idea? If the seller buys out the lease then yea that would be great and we would buy the house.. but if they don't.. should my mom not even consider it? My mom is looking at buying a home that has a solar lease. It looks like the system was bought in March 2020. Its a 25 yr initial term. $0.155/kWh with a 2.9% escalator. Can someone please break this down for me?? I do see that”
“We are buying some newly build house in the bay area. Would you guys recommend buying a solar for about 13k or just leasing for $100-150 / month plus consumption fee? submitted by /u/Ok_Knowledge7571 [link] [comments]”
“We recently got a solar proposal from a local installer and they offered a company named Propel as a financing option. Apparently, they are a subsidiary of Concert Finance. It appears that the first 5 years of the loan are something akin to a PPA, which we don’t want any part of. Also, they quoted a 25 year loan term, which we also don’t want any part of. Anyway, looking for a little feedback from folks with any insight. Thanks a bunch. submitted by /u/SpiritoSanto5 [link] [com”
“I would generalise this a little: The problem with buying a complex item is information inequality. The seller knows more about it than the potential buyer. When inspecting the item, the buyer therefore looks for signs of hidden defects or for evidence that the item is in good condition overall. In this way, cleanliness becomes a proxy for the general condition of the object. Similar mechanisms are at work elsewhere too. Take job applications, for example. A sloppy application is a red flag, eve”
“We are selling our house, in Georgia, with a fully paid off system (31 panel & a Powerwall 3). What do we need to do to transfer ownership to the buyer? submitted by /u/hradford5 [link] [comments]”
“I’m currently house hunting and one just listed has solar with a PPA. From what I’ve read there are good and bad PPAs but otherwise don’t know anything about them. The listing states it has 11 years left and current cost is 15.53 cents/kWh. What others factors are important? In particular what specific factors in the contract would you be comfortable with vs be a deal breaker. Houses are already very expensive in my area so the last thing we want is to add to that cost. Thanks! submitted b”
“I hear people saying it’s a scam but without reasoning. Company I am thinking about working with said they would send me the contract to look over - I’m curious about the language of the transfer of ownership after 6 years. I guess since it only became a thing the last 6 months, no one can say for sure. submitted by /u/dahadster [link] [comments]”
“So sunrun recently installed panels and a new breaker box on our home for "free" from what my dad was telling me he said he didn't sign anything with sales rep but since the installation the breaker keeps popping even worse then when we had our original four switch breaker box from when the house was first built and theres also still a bag of hardware hanging from breaker box that they were supposed to I guess instal did we get duped into something that's about to really suck f”
“Hello Fellow Redditors! I will preface this to say we are totally uneducated when it comes to solar systems. We lost our house and are working with a Design/Build firm that offered Solar as part of the total cost to rebuild (pitched roof, single story). We were sold a package with many references to installing a Tesla Powerwall, and I (foolishly?) assumed they would pair it with Tesla Panels. Turns out they will not. We were told that we're going to be getting Seraphim Sable 182mm panels: ht”
“This is my quote, living in CT. It seems like a great PPA deal with no escalation and a serious drop in my electric bill. Anyone see something I’m missing? I’m new to looking into this ETA: this is in CT. Also, the $69,000 was estimated savings. This system comes out to paying ~$30k at the end of the 25 year lease so I misunderstood it submitted by /u/AlterEgoJoe3 [link] [comments]”
“I have a PPA with a solar company and for unknown reasons I missed payments. I tried to rectify this which I thought I did and now I am trying to sell my home and as soon as my company heard I was selling, they are now suing me. I am basically being extorted by the solar company. In my PPA contract, it states they cannot put a lien on the home. Does anyone know can I just sell my house if the buyers agree to take over the solar panels and we put money in an escrow account to cover the costs to r”
“Silly me signed a 25 year lease with Sunnova in Florida who is now Sunstrong. My sales rep was with LGCY. My home insurance came up for renewal and through talking to my agent, he suggested that I add extra coverage for the panels, but to find out what they're worth first to get an accurate number. From there I started REALLY looking at what the cash price of my system might be and was blown away. I have 21 panels, and an 8.6 kw system. I've seen people saying they paid as littl”
“Nothing in the Sunnova contract section regarding purchase refers to the REC. The prepayment section does mention it. The contract only refers to fmv or the price listed in the schedule regarding the purchase option. They are trying to get the schedule price plus the REC when the FMV is probably way less than the purchase price listed. No explanation of where they got their numbers. submitted by /u/cbwb [link] [comments]”
“My electric bill is $340 a month. Offers 99% offset for $187 for first year, with 2.9% YoY increase, locked. I would be replacing the roof (it’s due anyway). Roof and solar panels warranties for 30 years. No battery included, but already have whole house generator via natural gas. What is the catch, or what questions should I be asking? submitted by /u/Blinkyfish21 [link] [comments]”