Solar PPAs Contain Terms Nobody Explained at Signing
24 posts across 7 communities in the last 30 days; 71% from r/solar.
“I bought a house with a spruce PPA in PGE territory. I hate PPA’s and got them to contribute $16k towards payoff of the solar thanks to what I’ve learned on this sub. Now I’m wondering exactly what I should do. -PPA payments in 2025 totaled $2,600. -I’m in year 12 of 20 year PPA…”
“Honestly curious about this. We bought our house 20 years ago, and solar prices were quite high. Sure, had we installed it then, we’d have saved a fortune, but we did not expect to be in our house for as long as we’ve been here. Well, now we’ve redone our roof, so that issue is…”
“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…”
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)
“so you're basically building a lead gen middleman that pre-pays the rebate to the homeowner and recovers it from the installer commission after close. the cash upfront angle is smart since waiting on a tax credit that may not even exist anymore is the number…”
“I bought a new build construction house a few years back and unfortunately Sunrun was their solar provided, which I guess solar is required for new construction under CA law? Anyway, it actually works out fine but after two years, I get a call from them and pick up knowing they run our solar. The guy tells me he’s getting reports from our community that there may be something wrong with the solar and that it may not be generating enough electricity based on the specs and asked us what we were pa”
“I'm reviewing the contract for Propel/concert financing my solar system (planning to pay it off on day 10 - the earliest possible) and noticed the following under the energy storage system section: "We control the Energy Storage System (if included) and we may enroll the System in one or more energy or grid management program"..."The availability of power from the Energy Storage System, if any, could be limited by participation in “demand response” and similar programs. You wi”
“I'm looking at solar proposals in Los Angeles, and received one where they claimed they can still get us the 30% tax discount, but the system would need to be owned by a commercial entity for 5 years (TPO) and we would have a contract with them that transfers ownership to us after 5 years (they said the 5 years is a requirement for the commercial entity to still get the tax credit). Does this make sense? It would be prepaid. We would pay the full amount upfront (don't need financing) and”
“New homeowner on the south shore of MA, solar reps have been relentless from 3 different companies knocking at my door. Sunrun has been the first to actually put numbers on the table but was really pushy to sign the papers to get started without leaving time to think/compare options. In late 2026, what are some of the core considerations that a newbie should consider when looking at different companies and PPA vs purchase? I do not have full confidence being locked into a 25 year contract that i”
“Currently in Escrow In California. The escrow won’t go through if I don’t agree to having the current PPA be transferred to me. I don’t know anything about solar and need help/advice. my agent isn’t really helping either. He’s provided me with misinformation so I’m just needing some direction and genuine help. submitted by /u/Mystique_Darkness [link] [comments]”
“Will I retain the three credits and discounts that I have with my current energy bill? I'm not under any solar plan right now but will be switching to NEM3 after installation This is all for PG&e submitted by /u/InfluenceEfficient77 [link] [comments]”
“I currently have a 11.4kW solar system on my house with a "1:1" buyback through TDXU (does not cover import fees) It is also month to month, so they could kick me off at any time, in which I would have to return to Tesla electric which only pays 3 cents per kWh. Solrite is finally allowing existing solar setups with their 60kWh back up battery systems, $0 down, $25/ month with a contract. The EFL states 12.9 cents per kWh import and a battery export credit of 12.9 as well. My solar pro”
“(say 90%+ eliminated). I don't understand your "simply not possible" comment. That is my point. Your bill is significantly reduced, it is not eliminated. I agree it's rarely or never worth it to go for the last little bit. OP needs to get a full understanding of what fraction of their bill they're going to eliminate instead of just looking at their entire power bill and mentally wiping it out.”
“I’ve been hearing about deals where a homeowner gets a “discounted” prepaid solar/battery package (say ~$20k on paper with the installer), but the PPA / tax-equity side shows a much higher system value (like $80k–$100k). The pitch to the homeowner is a big upfront discount, sometimes framed around tax credits. What I’m trying to understand: 1.If the EPC / installer agreement has to match the combined solar + battery PPA prepayments (some funders require this), how do mismatched quotes still clos”
“Hello! I'm eyeing a house with solar panels that has dropped in price 2 times and has one previous failed contract. I went to see it during an open house and really liked it but was just outside my price range. Now that it's dropped in price it's starting to get close to the top end of my range. How would you recommend evaluating the comps against houses that sold 1. Before these crazy interest rates and 2. That don't have solar panels? I know I need to get information on the pan”
“I signed up for the PGE/Sunrun solar program. Signed a contract saying i wasnt responsible for any cost and i was leasing the equipment. Received a letter today saying a contractor placed a mechanical lien on my property because they weren’t paid for the work. Turns out sunrun hired better earth who then hired another contractor and didn’t pay them supposedly. I don’t own the solar panels. Any idea what to do? Has anyone heard anything about this? submitted by /u/Top_Detective9184 [l”
“Chances are those door knockers do NOT represent the elexrroc company, but say they do. They are likely a sales or lead generation group that sells your contract to the actual installer. Leases do not work in your favor. The lease company has no incentive to repair any defects because you pay a flat rate lease. They're not affected by under production from a damaged system. A PPA, or power purchase agreement is better because you are not paying a flat rate, but paying the solar company for e”
“I'm in the San Francisco Bay Area and deciding between buying/financing solar outright vs. a prepaid lease. The prepaid discount is significant, but I'm concerned about recent reports of Participate having funding issues. Company A — HDM 16 REC panels, 7.4 kW + 1 Powerwall (13.5 kWh) ~$36k cash vs. ~$26k prepaid 2 Powerwalls: ~$46k cash vs. ~$33k prepaid Company B — Cash/finance 17 Hyundai panels, 7.48 kW + 1 Powerwall ~$33k cash No longer offering Participate The big appeal is the ~$10k”
“I bought a house with a spruce PPA in PGE territory. I hate PPA’s and got them to contribute $16k towards payoff of the solar thanks to what I’ve learned on this sub. Now I’m wondering exactly what I should do. -PPA payments in 2025 totaled $2,600. -I’m in year 12 of 20 year PPA agreement. -3% escalator clause, - chat says based on $2,600 2025 payments, 3% escalation clause I’m looking at around $21k in future payments. -Buyout where it’s totally my system and spruce will no longer service it is”
“Has anyone done a prepaid lease-to-own to capture the commercial 30% credit? What was your actual contract buyout wording? I'm pricing out a residential solar install: 13.34 kW DC (29x REC 460W + Enphase IQ8X)[cite: 4]. Gross replacement value quoted at $38.5k[cite: 3, 4]. Because the direct homeowner federal credit is gone, the installer pitched a "Hybrid Prepaid Lease" : Commercial 30% fed credit is taken off upfront (-$11,550)[cite: 3] Installer promo discount (-$1,925)[cite: 3]”
“I have a family member who is going through their checkboxes of bills to negotiate. Any one have any experience or advice for negotiating a monthly lease situation with solar providers? I think the company is called Sun Run or something like that. submitted by /u/AggroTumbleweed52 [link] [comments]”
“So I might be jumping the gun here but I got a bad feeling about this one. An installer told me today Participate owes them around 200k and stopped paying them. Then I saw on another reddit post someone's already saying something similar. On top of that I'm hearing they're trying to raise 150 million to catch up on what they owe installers. Trying to see how serious this actually is. If anyone has real info: Does Participate owe you or your installer money right now, and how far behi”
“Had a rep come to my door talking about a Power Purchase Agreement PPA instead of a loan, lease, or financing. Says I will only be paying for the power the panels produce and not the panels themselves. It sounded like a good deal but what’s the catch ? I live in Nevada which he says is one of the states to have the net metering program. Help. submitted by /u/H1gh0nLife [link] [comments]”
“Honestly curious about this. We bought our house 20 years ago, and solar prices were quite high. Sure, had we installed it then, we’d have saved a fortune, but we did not expect to be in our house for as long as we’ve been here. Well, now we’ve redone our roof, so that issue is taken care of, and we want to add solar to our brand new roof. But prices, to the best of my recollection, haven’t really budged. It was gonna cost us $25 - $30K 20 years ago, and it’s the same price now. But all I hear a”
“Hello! I see a lot of posts that warn folks away from leasing solar panels. I can’t afford to buy outright but the lease-to-own situation did not seem like a terrible alternative to me. I do understand this locks me in with a specific company for 20+ years, but what are the other concerns? I’d much rather own outright, but this would put the panels out of reach for me. Any insight here is appreciated. I’m at the beginning of researching and meeting with different companies so happy to have any h”
“OP lheard a sales pitch similar to this yesterday. Did you learn more about this? Is this a scam?”
“I am finishing up a solar project with PW3 in California with Participate Energy/Participate Holdings as the lease holder. (The contract is signed and payments made.) There are a number of interesting and non-ideal clauses in the contract. I am trying to get a feel for what in practice is done with Participate "financed" systems. The contract says they can own a VPP program on your system. Does anyone have an example of them doing this? How much control do they exert over the system ad”
“thanks for the detail. my hunch is the actual signal here lives in the lender or funder portal, not a vertical erp, since that's where cancellations get flagged first. does your platform pull from lender statements directly, or only from what's already synced into a crm or erp? happy to keep talking as this takes shape.”
“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 have permission to operate. To complicate matters the company we used to install is now defunct so we can not go back to them to complete whatever paperwork deficit we have. PG&E is saying we need to find a new provider that will certify the insta”
“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,”