residential leasing

124

Comments

  • nielniel Posts: 10,311Solar Expert ✭✭✭✭
    Re: residential leasing

    drees,
    i hope you don't mind, but i put that definition into the glossary. if you feel it needs tweaked then let me know.
  • peizhaipeizhai Posts: 10Registered Users
    Re: residential leasing
    Phred 01,

    Would you explain what a "Feed-in tariff" is and what it is meant to do to electric providers, grid tie solar homes, and homeowners' costs?

    Thanks,
    Bill

    Feed-in Tariff (FIT) is usually a law to require utilities to pay for renewable energy production in an advanced tariff. For solar, the tariff is 5-10 times higher than conventional electricity.
    it is widely adopted in Germany, Spain. And being discussed to adopt in some states in U.S. The cost to adopt FIT is passed on to every customer who purchases electricity from the utility.
  • nielniel Posts: 10,311Solar Expert ✭✭✭✭
    Re: residential leasing

    so how do you think the definition should look that both of you would agree upon and i'll put it in there?
  • dreesdrees Posts: 481Solar Expert ✭✭✭
    Re: residential leasing

    Up to you guys, no worries here. :D
  • peizhaipeizhai Posts: 10Registered Users
    Re: residential leasing

    No problem with me, thanks
  • newenergynewenergy Posts: 291Solar Expert ✭✭✭✭✭✭
    Re: residential leasing

    SolarCity, SunRun, and Sungevity all have a lot of money behind them. They may be making money on these deals, but they could just be fighting for market share as they are all looking forward to IPOs in the near future.

    From the point of view of a small integrator it seems hard to compete with the prepaid lease when your argument is about the viability of the billion dollar company and what is going to happen in 15 or 20 years.

    edit: I'm no tax expert, but I think the solar leasing companies are getting some advantage from the accelerated depreciation allowed on solar systems.
  • tonystewarttonystewart Posts: 54Solar Expert ✭✭
    Re: residential leasing

    I hope some of these companies choose Florida for their next expansion, I would welcome the bids!
  • russruss Posts: 593Solar Expert
    Re: residential leasing

    A good deal for the supplier or they would not be doing it.

    Will this be a plus or a minus when selling the house? Many people will not want some company's stuff on the roof for a really minor discount on power.

    They are simply raiding the US government treasury with your assistance.

    You can't even say you are doing a green thing as all the credit goes to the leasing company.
  • newenergynewenergy Posts: 291Solar Expert ✭✭✭✭✭✭
    Re: residential leasing

    I just got a look at a bid with a prepaid lease. It was about 3/4 the price of a new install after rebates and tax credit (in Southern California with SCE). Terms were no additional cost for 20 years, then buy at "market price", renew lease or have removed.
  • System2System2 Posts: 6,290 admin
    Re: residential leasing - Sungevity

    We signed up for Sungevity's residential leasing. I don't have the specs on our system right in front of me but they are installing next week. I'm very excited. My understanding is that they are making their money on rebates, tax credits and the like. It is costing me net $1500, pre-payment on the lease. I don't have to pay another penny for 20 years. The terms (which I read very carefully and had a lawyer look over) are very clear, at the end of 20 years they will remove at their cost if I want it gone. I like that because 20 years from now technology will be vastly different.

    I also get $500 for every referral I make. Which I won't make any until I see my first electric bill post installation.

    So far the experience has been outstanding. We've had to do nothing. They are installing Canadian Solar ET185s panels.
  • russruss Posts: 593Solar Expert
    Re: residential leasing

    I also get $500 for every referral I make. Which I won't make any until I see my first electric bill post installation.


    How kind of you! Screw your friends and neighbors just like you got it.

    1500 USD for 20 years of power? Mind posting the lease here as I doubt that is true.
  • System2System2 Posts: 6,290 admin
    Re: residential leasing

    Wow Russ, you're kind of a jerk, eh.

    Just slap someone who is excited about cutting their electric bills and telling me I'm an idiot to boot and that I'm going to screw my neighbors.

    My lease is basically the same as has been talked about in this thread, 20 years, no out of pocket, I don't have to pay anything at the end, I can tell them to remove it or pay them FMV, which I would just tell them to remove it as technology will have improved.

    This is how SUngevity and Solar CIty are making their money -

    9. Ownership of the System; Tax Credits; Rebates. This Agreement is a lease and not a sale agreement. We own the System and any data from the System for all purposes. We will claim the environmental incentives and tax benefits
    available with respect to the System, including, without limitation, (a) depreciation deductions, investment tax credits and any cash grant in lieu of investment tax credits and (b) any renewable energy credits, utility rebates (including performance based incentives), and any other environmental attributes associated with the electricity output from the System (all the above collectively the "Tax Benefits"). You agree to cooperate with us so we may apply for or claim any such incentives and benefits. Cooperation may include your filing or consent to filing applications with the federal, state or local government or a local utility and assigning these benefits to us. You agree not to claim any tax benefit, grant or other incentive that the owner of a solar system migh

    What do I care? I cannot afford $20,000 for for a purchased solar system which is about what all the quotes were I got. This way I get it and they get the tax benefits. Someone is going to get the tax benefits and rebates, if not me, then them. That money is set aside and is being spent at a rate that will soon deplete it well ahead of the 5 year schedule. So I'm glad I got on the band wagon now.
  • mike95490mike95490 Posts: 7,967Solar Expert ✭✭✭✭
    Re: residential leasing
    atrevido wrote: »
    ....
    What do I care? I cannot afford $20,000 for for a purchased solar system which is about what all the quotes were I got. This way I get it and they get the tax benefits. Someone is going to get the tax benefits and rebates, if not me, then them. That money is set aside and is being spent at a rate that will soon deplete it well ahead of the 5 year schedule. So I'm glad I got on the band wagon now.

    What happens to your payment, when the grid is down, or the panels are not producing power, will you still owe your regular electric bill, or does the lease company take over the electric bill? And when their other incomes fail ( high sell backs, green credits) will they be asking you for the difference?

    Taking a $20,000 investment, and having a company with overhead and several paychecks, just seems un-sustainable in the long term, even with all the tax credits and rebates the company can get.
    I'm glad you had a lawyer look it over.
    Powerfab top of pole PV mount | Listeroid 6/1 w/st5 gen head | XW6048 inverter/chgr | Iota 48V/15A charger | Morningstar 60A MPPT | 48V, 800A NiFe Battery (in series)| 15, Evergreen 205w "12V" PV array on pole | Midnight ePanel | Grundfos 10 SO5-9 with 3 wire Franklin Electric motor (1/2hp 240V 1ph ) on a timer for 3 hr noontime run - Runs off PV ||
    || Midnight Classic 200 | 10, Evergreen 200w in a 160VOC array ||
    || VEC1093 12V Charger | Maha C401 aa/aaa Charger | SureSine | Sunsaver MPPT 15A

    solar: http://tinyurl.com/LMR-Solar
    gen: http://tinyurl.com/LMR-Lister ,

  • russruss Posts: 593Solar Expert
    Re: residential leasing

    My lease is basically the same as has been talked about in this thread, 20 years, no out of pocket, I don't have to pay anything at the end

    As I read what you wrote, there is 1500 dollars out of pocket. What is the system size? How much power are you allowed to consume each month before you are billed?

    I have yet to read of any leases where there is no electric bill for 20 years after the prepayment of 1500 USD - which would come out to 75 dollars/year for an electric bill - with no inflation - very difficult. I would say impossible but you already stated that I am a jerk.

    Anytime there is 'free' money being passed out there is very good reason to question what is going on. 75 dollar per year electric bills are more or less free money

    If a lease were posted for all to see rather than be a top secret document it would be far harder to criticize. All could see what is really happening. A lawyer reading the lease can tell you if it is legal - not if it is a good business deal.

    Utilities have a set of rules to go by but these leasing companies seem to tailor it to each customer in a manner to 'get the sale'. None post a sample lease for all to see that I can find.

    In general, many posts on other blogs are far more harsh concerning leases.

    Best Regards,
    Russ
  • dwhdwh Posts: 1,341Solar Expert ✭✭✭
    Re: residential leasing
    russ wrote: »
    I have yet to read of any leases where there is no electric bill for 20 years after the prepayment of 1500 USD

    That's not what he actually said...

    Read what you quoted:
    I also get $500 for every referral I make. Which I won't make any until I see my first electric bill post installation.

    So he did say that he'll still be getting an electric bill.

    The way I read it is that he pays 1500 up front for the system, and hopes/expects to recoup that over the next 20 years via a reduced electric bill.
  • newenergynewenergy Posts: 291Solar Expert ✭✭✭✭✭✭
    Re: residential leasing

    Seems like Atrevido is saying it's $1500 and then not a penny for 20 years, so no lease payments?

    If that's true it must be like a 1300 watt system? That's still a great deal though.

    I don't think there will be any reason to replace the modules in 20 years just because there is new technology. These modules will be paid for, will be working (hopefully) and at that point whatever replaces them will cost more than zero. Also, hopefully your house will require less energy in 20 years thanks to technology, not more.

    Sungevity and SolarCity (or anyone using SunRun) get the same tax credits and rebates that you'd get if you bought the system, so they aren't making money off of those any better than you'd be if you bought the system. They (or their investors) may have an advantage over you in being able to use accelerated depreciation though. The investors are comparing this to investments by the rate of return rather than just looking at how many years for payback and thinking anything over 5 years is a long time.

    I think the fact that the lease is a good value despite having an extra middle man in there is just an indication of how good a long term investment solar is. But, of course, not everyone has the money to buy or maybe they would rather lease and put their money somewhere else.

    (I don't see a Canadian Solar ET module?)
  • JuramJuram Posts: 36Solar Expert
    Re: residential leasing
    newenergy wrote: »
    Seems like Atrevido is saying it's $1500 and then not a penny for 20 years, so no lease payments?

    If that's true it must be like a 1300 watt system? That's still a great deal though.

    I don't think there will be any reason to replace the modules in 20 years just because there is new technology. These modules will be paid for, will be working (hopefully) and at that point whatever replaces them will cost more than zero. Also, hopefully your house will require less energy in 20 years thanks to technology, not more.

    Sungevity and SolarCity (or anyone using SunRun) get the same tax credits and rebates that you'd get if you bought the system, so they aren't making money off of those any better than you'd be if you bought the system. They (or their investors) may have an advantage over you in being able to use accelerated depreciation though. The investors are comparing this to investments by the rate of return rather than just looking at how many years for payback and thinking anything over 5 years is a long time.

    I think the fact that the lease is a good value despite having an extra middle man in there is just an indication of how good a long term investment solar is. But, of course, not everyone has the money to buy or maybe they would rather lease and put their money somewhere else.

    (I don't see a Canadian Solar ET module?)




    I would recommend financing a system over leasing. You still have reduced payments but then you have actual tangent value that you can make money off of once you reach your ROI, or add value to your home if you sell it.


    With a $1500 lease prepayment, the guy is getting at max a 1.5k system. At current pricing, buying that system, using the same sort of panels that they're using would cost you $7725 minus $3000 utility rebate -30% tax credit - state tax credit=Under $2200 to own the system 100% and get all future and eventual benefits such as feed-in-tariff's from your system.

    If an area has a very weak utility rebate, then its worth looking at a lease but I have a nagging suspicion that these companies compensate for that by jacking up the pricing in those areas.


    Basically, even a prepaid lease will be at most 20% cheaper than buying the system outright and the leasing company will make a lot more than that off of you by leasing your roofspace for 15-20 years and charging you for it.
  • JuramJuram Posts: 36Solar Expert
    Re: residential leasing
    atrevido wrote: »

    This is how SUngevity and Solar CIty are making their money -

    9. Ownership of the System; Tax Credits; Rebates. This Agreement is a lease and not a sale agreement. We own the System and any data from the System for all purposes. We will claim the environmental incentives and tax benefits
    available with respect to the System, including, without limitation, (a) depreciation deductions, investment tax credits and any cash grant in lieu of investment tax credits and (b) any renewable energy credits, utility rebates (including performance based incentives), and any other environmental attributes associated with the electricity output from the System (all the above collectively the "Tax Benefits"). You agree to cooperate with us so we may apply for or claim any such incentives and benefits. Cooperation may include your filing or consent to filing applications with the federal, state or local government or a local utility and assigning these benefits to us. You agree not to claim any tax benefit, grant or other incentive that the owner of a solar system migh


    What size in kilowatts is your system exactly?
  • Energy EfficienciesEnergy Efficiencies Posts: 11Registered Users
    Re: residential leasing

    Sorry, but I couldnt handle reading 11 pages of posts...I dont offer any type of lease program to clients because I figure if they have good enough credit to qualify for a lease, then they should buy the system outright with a second mortgage, remodel loan, etc. The payback here is around 7 years with the local rebates from the utilities and feds, and less than 4 for business because of MACRS..not including rate increases..so why would you even think of leasing...other than the no out of pocket some leasing companies offer...get real. This poster is going to pay out of pocket probably significantly close to buying the system. if you are paying for example 15% less on your bill for EVER, you can just as easily pay a loan off monthly and own the equipment in less time than you can buy out on the typical lease... Leasing companies are there to make money. PERIOD.

    One other thing....when they come take the solar property off your roof, do they re-shinge? If not, what covers the roof penetrations that were made to install the system?
  • russruss Posts: 593Solar Expert
    Re: residential leasing

    @ Energy Efficiencies - Agreed 100% - The old saying that when something sounds too good to be true it usually is applies.

    Claims are made that are totally unsupported - no supporting documents offered. The leasing sites do NOT offer their lease up for public inspection - wonder why?

    Utilities are much more controlled and regulated. The leasing companies are much more like Kirby vacuum cleaner or home siding salesmen - get in and get a deal - the details are none of the suckers business anyway.

    The offer of a 500 dollar kickback if you line up a friend or neighbor is really low in my opinion.
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    Russ,

    I could try to post a text copy of the lease Solar City offered me, if you have not seen one.
  • russruss Posts: 593Solar Expert
    Re: residential leasing

    I would like to see it and I expect many others would as well.

    Thanks,
    Russ
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    Sorry about the formatting. Part 1

    PERFORMANCE GUARANTY AND LIMITED WARRANTY AGREEMENT

    Welcome to SolarCity!

    This Performance Guaranty and Limited Warranty Agreement (this “Limited Warranty”) is SolarCity’s agreement to
    provide you warranties on the solar panel system (the “System”) you leased. A description of the System you leased is
    attached to this Limited Warranty as Exhibit A. The System will be professionally installed by SolarCity at the address you
    listed in the lease agreement (the “Lease”). We will refer to the installation location as your “Property” or your “Home.”
    This Limited Warranty begins when we start installing the System at your Home. We look forward to helping you produce
    clean, renewable solar energy at your Home.

    1. Limited Warranties.
    (a) Limited Warranties. SolarCity warranties the System as follows:
    i. Installation Warranty. We will professionally install the System in a good and workman-like manner
    according to industry standards and our commitments to you in Section 2. This installation warranty
    will run for one (1) year following the completion of the System installation;
    ii. Use Warranty. Under normal use and service conditions, the System will be free from defects in
    workmanship or defects in, or a breakdown of, materials or components during the Warranty Period (as
    defined below);
    iii. Roof Warranty. When we penetrate your roof during a System Installation we will warrant roof damage
    we cause to areas that are within a three (3) inch radius of our roof penetrations. This roof warranty will
    run the longer of (A) one (1) year following the completion of the System installation; and (B) the length
    of any existing warranty on your roof; and
    iv. Repair Promise. During the Warranty Period, SolarCity will repair or replace any defective part,
    material or component or correct any defective workmanship, at no cost or expense to you (including all
    labor costs), when you submit a valid claim to us under this Limited Warranty. SolarCity may use new
    or reconditioned parts when making such repairs or replacements. SolarCity may also, at no additional
    cost to you, upgrade or add to any part of the System to ensure that it performs according to the
    guarantees set forth in this Limited Warranty.

    This Limited Warranty will continue from the date we start installing the System at your Home through the longer
    of (i) the Lease Term (“Lease Term” has the same meaning as set forth in the Lease); and (ii) ten (10) years (the
    “Warranty Period”) except for the warranties specified in Sections 1(a)i and iii above, which have shorter periods.
    If you have taken over an existing Lease, then this Limited Warranty will cover you for the remaining balance of the
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    (b) Performance Warranties and Guaranty.
    i. Energy Production Guarantee. SolarCity guarantees that during the Warranty Period the System will
    generate the guaranteed annual kilowatt-hours (kWh) (“Guaranteed Annual kWh”) of energy set
    forth in Exhibit B as follows:

    B. If at the end of each successive twelve (12) month anniversary of your first monthly payment
    the Actual Annual kWh is greater than the Guaranteed Annual kWh during any twelve (12)
    month period, this surplus will be carried over and will be used to offset any deficits that may
    occur in the future. If your System produces more energy than the Guaranteed Annual kWh
    then this additional energy is yours at no additional cost.

    “Actual Annual kWh” means the AC electricity produced by your System in kilowatt-hours
    measured and recorded by SolarCity during each successive twelve (12) month anniversary of your
    first monthly payment. To measure the Actual kWh we will use the SolarGuard™ Monitoring
    Service or the utility provided meter (calibrated to NREL standards) or to the extent such services are
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    “Guaranteed Energy Price per kWh” means $0.088 per kWh with an annual increase of
    three-point-five-zero percent (3.50%).

    A. If at the end of each successive twelve (12) month anniversary of your first monthly payment
    the cumulative Actual Annual kWh (defined below) generated by the System is less than the
    Guaranteed Annual kWh, then we will send you a refund check equal to the difference
    between the cumulative Actual Annual kWh and the Guaranteed Annual kWh multiplied by
    the Guaranteed Energy Price per kWh (defined below). We will make that payment within
    thirty (30) days of the end of the calendar year.

    For example, if the first twelve (12) month period commences on October 1, 2008 and ends on
    September 30, 2009, and the energy the System was supposed to generate is less than the
    energy the system was guaranteed to generate during such twelve (12) month period, we will
    pay you the difference in the Actual Annual kWh and the Guaranteed Annual kWh multiplied
    by the Guaranteed Energy price per kWh within thirty (30) days after December 31, 2009.
    See the table below for a real world example.

    ii. System Failure. If you are leasing the System during the Limited Warranty Period and the System
    ceases to generate any electricity (a “System Failure”) for a whole calendar day, SolarCity will repay
    you for the Lease cost you paid during each whole calendar day of the System Failure within thirty
    (30) days. Such System Failure payments shall be included for determining payments under the
    production guarantee.
    iii. SolarGuard. During the Warranty Period, we will provide you at no additional cost our SolarGuard
    Monitoring Service (“SolarGuard”). SolarGuard is a proprietary monitoring system designed and
    installed by SolarCity that captures and displays historical energy generation data over an Internet
    connection and consists of hardware located on site and software hosted by SolarCity. If your
    System is not operating within normal ranges, SolarGuard will tell us and we will notify you
    promptly.
    iv. Output Warranty. The System’s electrical output during the first ten (10) years of the Warranty
    Period shall not decrease by more than fifteen percent (15%).

    Example Example Actual Example Guaranteed Example
    Guaranteed Annual Energy Price Payment to You
    Annual kWh kWh

    10,000 9,500 $0.20 $100.00

    (c) Maintenance and Operation.
    i. General. When you sign your Lease you will be given a copy of SolarCity’s Solar Operation and
    Maintenance Guide. This guide provides you with System operation and maintenance instructions,
    answers to frequently asked questions, troubleshooting tips and service information..
    ii. SolarGuard. SolarGuard needs a high speed internet line to operate. Therefore, during the Warranty
    Period, you agree to maintain the communication link between SolarGuard and the System’s server and
    PV Modules. You agree to maintain and make available, at your cost, a functioning indoor Internet
    connection with one available wired Ethernet port and standard AC power outlet within eighty (80) feet
    of the System’s AC/DC inverter(s). This communication link must be a 10/100 Mbps Ethernet
    connection that supports common Internet protocols (TCP/IP and DHCP).

    (d) Making a Claim; Transferring this Warranty.
    i. Claims Process. You can make a claim by:
    a. Emailing us at the email address in Section 6 below;
    b. Writing us a letter and sending it overnight mail with a well-known service; or
    c. Sending us a fax at the number in Section 6 below.

    ii. Transferable Limited Warranty. SolarCity will accept and honor any valid and properly submitted
    Warranty claim made during the Warranty Period by any person who either purchases the System from
    you or to whom you properly transfer the Lease.


    (e) Exclusions and Disclaimer. The limited warranties and guaranty provided in this Limited Warranty do not
    apply to any lost electricity production or any repair, replacement or correction required due to the following:
    i. someone other than SolarCity or its approved service providers installed, removed, re-installed or
    repaired the System;
    ii. destruction or damage to the System or its ability to safely produce energy not caused by SolarCity or its
    approved service providers while servicing the System (e.g. a tree falls on the System);
    iii. your failure to perform, or breach of, your obligations under the Lease. (such as if you modify or alter
    the System);
    iv. your breach of this Limited Warranty including being unavailable to provide access or assistance to us in
    diagnosing or repairing a problem or failing to maintain the System as stated in the Solar Operation and
    Maintenance Guide;
    v. any Force Majeure Event (as defined below);
    vi. a power or voltage surge caused by someone other than SolarCity including a grid supply voltage outside
    of the standard range specified by your utility;
    vii. shading from foliage that is new growth or is not kept trimmed to its appearance on the date the System
    was installed;
    viii. any System Failure not caused by a System defect (e.g. such as making roof repairs); or

    ix. theft of the System.

    This Limited Warranty gives you specific rights, and you may also have other rights which vary from state to state.
    This Limited Warranty does not warrant any specific electrical performance of the System, other than that described
    above.
    THE LIMITED WARRANTIES DESCRIBED IN SECTIONS 1(a) and (b) ABOVE ARE THE ONLY EXPRESS
    WARRANTIES MADE BY SOLARCITY WITH RESPECT TO THE SYSTEM. SOLARCITY HEREBY
    DISCLAIMS, AND ANY BENEFICIARY OF THIS LIMITED WARRANTY HEREBY WAIVES, ANY
    WARRANTY WITH RESPECT TO ANY COST SAVINGS FROM USING THE SYSTEM.

    2. SolarCity’s Standards.
    For the purpose of this Limited Warranty the standards for our performance will be (i) normal professional
    standards of performance within the solar photovoltaic power generation industry in the relevant market; and (ii)
    Prudent Electrical Practices. “Prudent Electrical Practices” means those practices, as changed from time to time,
    that are engaged in or approved by a significant portion of the solar energy electrical generation industry operating
    in the United States to operate electric equipment lawfully and with reasonable safety, dependability, efficiency and
    economy.
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    Part 2

    3. System Repair, Relocation or Removal.
    (a) You agree that if (i) the System needs any repairs that are not the responsibility of SolarCity under this Limited
    Warranty, (ii) the system needs to be removed and reinstalled to facilitate remodeling of your Home or (iii) the
    system is being relocated to another home you own pursuant to the Lease, you will have SolarCity, or another
    similarly qualified service provider, at your expense, perform such repairs, removal and reinstallation, or
    relocation on a time and materials basis.
    (b) If you want to return the System to SolarCity under Section 17 of the Lease then SolarCity will remove the
    System at no cost to you. SolarCity will remove the posts and waterproof the post area. SolarCity will warrant
    the waterproofing for one (1) year after it removes the System. Color matching of the patched roof area will be
    done with material you provide to us. You agree to reasonably cooperate with SolarCity in removing the Solar
    Panel System including providing necessary space, access and storage and we will reasonably cooperate with
    you to schedule removal in a time and manner that minimizes inconvenience to you.

    4. Force Majeure.
    If SolarCity is unable to perform all or some of its obligations under this Limited Warranty because of a Force
    Majeure Event, SolarCity will be excused from whatever performance is affected by the Force Majeure Event,
    provided that:

    1. SolarCity, as soon as is reasonably practical, gives you notice describing the Force Majeure Event;
    2. SolarCity’s suspension of its obligations is of no greater scope and of no longer duration than is
    required by the Force Majeure Event; and
    3. No SolarCity obligation that arose before the Force Majeure Event that could and should have been
    fully performed before such Force Majeure Event is excused as a result of such Force Majeure Event.

    “Force Majeure Event” means any event, condition or circumstance beyond the control of and not caused by
    SolarCity’s fault or negligence. It shall include, without limitation, failure or interruption of the production, delivery or acceptance of electricity due to: an act of god; war (declared or undeclared); sabotage; riot; insurrection;
    civil unrest or disturbance; military or guerilla action; terrorism; economic sanction or embargo; civil strike, work
    stoppage, slow-down, or lock-out; explosion; fire; earthquake; abnormal weather condition or actions of the
    elements; hurricane; flood; lightning; wind; drought; the binding order of any governmental authority (provided that
    such order has been resisted in good faith by all reasonable legal means); the failure to act on the part of any
    governmental authority (provided that such action has been timely requested and diligently pursued); unavailability
    of electricity from the utility grid, equipment, supplies or products (but not to the extent that any such availability of
    any of the foregoing results from SolarCity’s failure to have exercised reasonable diligence); and failure of
    equipment not utilized by SolarCity or under its control.
    5. Limitations on Liability.
    (a) No Consequential Damages. YOU MAY ONLY RECOVER DIRECT DAMAGES AND THOSE
    AMOUNTS DUE PURSUANT TO SECTION 1(b) UNDER THIS LIMITED WARRANTY, AND IN NO
    EVENT SHALL SOLARCITY OR ITS AGENTS OR SUBCONTRACTORS BE LIABLE TO YOU OR
    YOUR ASSIGNS FOR SPECIAL, INDIRECT, PUNITIVE, EXEMPLARY, INCIDENTAL OR
    CONSEQUENTIAL DAMAGES OF ANY NATURE. SOME STATES DO NOT ALLOW THE
    EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE
    ABOVE LIMITATION MAY NOT APPLY TO YOU.
    (b) Limitation of Duration of Implied Warranties. ANY IMPLIED WARRANTIES, INCLUDING THE
    IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND MERCHANTABILITY
    ARISING UNDER STATE LAW, SHALL IN NO EVENT EXTEND PAST THE EXPIRATION OF ANY
    WARRANTY PERIOD IN THIS LIMITED WARRANTY. SOME STATES DO NOT ALLOW
    LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION
    MAY NOT APPLY TO YOU.
    (c) Limit of Liability. Notwithstanding any other provision of this Limited Warranty to the contrary, SolarCity’s
    total liability arising out of relating to this Limited Warranty shall in no event:
    i. For System Failure or Replacement: exceed the cost of the System Lease; and
    ii. For damages to your Home: exceed two million dollars ($2,000,000) provided that the damages are
    caused solely by us or the System and the damages are covered by our insurance.

    6. Notices.
    All notices under this Limited Warranty shall be in writing and shall be by personal delivery, facsimile transmission,
    electronic mail, overnight courier, or regular, certified, or registered mail, return receipt requested, and deemed
    received upon personal delivery, acknowledgment of receipt of electronic transmission, the promised delivery date
    after deposit with overnight courier, or five (5) days after deposit in the mail. Notices shall be sent to the party
    identified in this Agreement at the address set forth below or such other address as either party may specify in
    writing. Each party shall deem a document faxed to it as an original document.

    To SolarCity:

    SolarCity Corporation
    393 Vintage Park Drive, Suite 140

    Foster City, CA 94404
    Attention: Warranty Claims

    Telephone: 650-638-1028

    Facsimile: 650-638-1029

    Email: [email protected]

    To You:

    At the billing address in the Lease or any
    subsequent billing address you give us.

    7. Applicable Law/Arbitration.
    The laws of the state where your Home is located shall govern this Limited Warranty without giving effect to
    conflict of laws principles. We agree that any dispute, claims or disagreements between us shall be resolved by
    arbitration. Judgment on an arbitrator’s award may be entered in any court having jurisdiction. All statutes of
    limitations that are applicable to any dispute shall apply to any arbitration between us. Prior to any arbitration the
    parties agree to consider mediating their claims.

    Each arbitration, including the selecting of the arbitrator, will be administered by JAMS/Endispute, LLC under its
    Commercial Arbitration Rules and, in addition, the Due Process Protocol for Mediation and Arbitration of
    Consumer Disputes most recently in effect. Arbitration will be governed by the Federal Arbitration Act (Title 9 of
    the U.S. Code). Either party can initiate an arbitration proceeding by filing the necessary forms with JAMS. To learn
    more about arbitration, you can call any JAMS office or review the materials at www.jamsadr.com. If a JAMS
    office does not exist in the county where you are located, another arbitrator will be agreed upon or if no other
    arbitrator can be agreed upon, then we will use the AAA office closest to your Home.

    You and we shall each bear our own costs and expenses, including attorneys’ fees, with respect to any arbitration.
    However, if under the circumstances relating to the dispute it is determined by the arbitrator that it would be
    unconscionable or otherwise inappropriate for you to pay the filing and all other fees associated with the arbitration,
    we will pay those fees for you.

    Only disputes involving you and us may be addressed in the arbitration. You agree that you cannot not pursue any
    dispute as a “class action” unless the amount in dispute between us is less than three thousand dollars ($3,000), not
    including any claim you might bring for attorneys’ fees or punitive or exemplary damages where provided by law.
    This means that the arbitration may not address disputes involving other persons which may be similar to the
    disputes between you and us.

    The arbitrator shall have the authority to award any legal or equitable remedy or relief that a court could order or
    grant. The arbitrator, however, is not authorized to change or alter the terms of this Agreement or to make any award
    that would extend to any transaction other than your own.

    Because we have agreed to arbitrate all disputes, neither of use will HAVE THE RIGHT TO LITIGATE THAT
    DISPUTE IN COURT, OR TO HAVE A JURY TRIAL ON THAT DISPUTE, OR ENGAGE IN DISCOVERY
    EXCEPT AS PROVIDED FOR IN THE JAMS RULES. FURTHER, YOU WILL NOT HAVE THE RIGHT TO
    PARTICIPATE AS A REPRESENTATIVE OR MEMBER OF ANY CLASS PERTAINING TO ANY DISPUTE
    UNLESS THE AMOUNT IN DISPUTE IS LESS THAN THREE THOUSAND DOLLARS ($3,000), NOT
    INCLUDING ANY CLAIM YOU MIGHT BRING FOR ATTORNEYS FEES OR PUNITIVE OR EXEMPLARY
    DAMAGES WHERE PROVIDED BY LAW. THE ARBITRATOR’S DECISION WILL BE FINAL AND
    BINDING, EXCEPT TO THE EXTENT IT IS SUBJECT TO REVIEW IN ACCORDANCE WITH
    APPLICABLE LAWS GOVERNING ARBITRATION AWARDS. OTHER RIGHTS THAT YOU OR WE
    WOULD HAVE IN COURT MAY ALSO NOT BE AVAILABLE IN ARBITRATION.

    If any portion of this section of this Limited Warranty is determined to be unenforceable, the remaining provisions
    shall be enforced in accordance with their terms or shall be interpreted or re-written so as to make them enforceable.

    8. Assignment and Transfer of this Limited Warranty.
    SolarCity may assign its rights or obligations under this Limited Warranty to a third party without your consent,
    provided that any assignment of SolarCity’s obligations under this Limited Warranty shall be to a party qualified to
    perform such obligation. This Limited Warranty protects only the person who leases the System. Your rights and
    obligations under this Limited Warranty will be automatically transferred to any person who purchases the System
    from you or to whom you properly transfer the Lease.

    9. Entire Agreement; Changes.

    This Limited Warranty contains the parties entire agreement regarding the limited warranty of the System.
    SolarCity’s obligations under this Limited Warranty are separate and distinct from its, or its assigns, obligations
    under the Lease and any breach of this Limited Warranty shall not affect your obligations under the Lease. The
    Lease may be assigned to a third party without assignment of SolarCity's obligations under this Limited Warranty.
    SolarCity's obligations under this Limited Warranty may only be assigned in writing to a party that expressly
    accepts responsibility in writing for SolarCity's obligations under this Limited Warranty. There are no other
    agreements regarding the limited warranty of the System, either written or spoken. Any change to this Limited
    Warranty must be in writing and signed by both parties. If any portion of this Limited Warranty is determined to be
    unenforceable, the remaining provisions shall be enforced in accordance with their terms or shall be interpreted or
    re-written so as to make them enforceable. Provisions that should reasonably be considered to survive termination
    of this Limited Warranty shall survive.

    SolarCity Corporation

    By (signature):

    Printed Name: Charles Ferer

    Title:CFO

    Lessee


    By (signature):

    Printed Name: XXXXXXXXXXXXXXXX

    Exhibit A

    1. Lease Date: _____________

    2. Original Lessee Name: XXXXXXXXXXXXXXXX

    3. Original Co-Lessee Name (if applicable):

    4. Description of the System:

    5.6 KW DC (STC) PHOTOVOLTAIC SYSTEM

    Photovoltaic Modules

    Inverter(s)

    Mounting system

    Monitoring system

    Electric meter number:

    The estimated average price per kWh over the lease term is: $0.135

    Exhibit B

    Table of Guaranteed Annual kWh

    YEAR GUARANTEED CUMULATIVE KWH
    ANNUAL KWH
    1 9,694 9,694
    2 9,597 19,292
    3 9,501 28,793
    4 9,406 38,200
    5 9,312 47,512
    6 9,219 56,731
    7 9,127 65,859
    8 9,036 74,894
    9 8,945 83,840
    10 8,856 92,696
    11 8,767 101,463
    12 8,680 110,143
    13 8,593 118,736
    14 8,507 127,243
    15 8,422 135,665
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    The actual lease: part 1

    SolarCity Corporation

    393 Vintage Park Drive

    Foster City, CA 94404

    CA CSLB 888104

    Homeowner Name and Address Co-Owner Name (If any)

    XXXXXXXXXXXXXXXX
    XXXXXXXXXXXXXXXX
    XXXXXXXXXXXXXXXX


    Installation location:

    XXXXXXXXXXXXXXXX
    XXXXXXXXXXXXXXXX
    ____________________

    1. Solar Panel System Lease; Introduction.
    This SolarLease (this “Lease”) is the agreement between you and SolarCity Corporation (together with its successors and
    assigns, “SolarCity” or “we”), covering the lease to you of the solar panel system (the “System”) described below. SolarCity
    agrees to lease to you, and you agree to lease from SolarCity, the System on the terms and conditions described in this Lease.
    The System will be installed by SolarCity at the address you listed above. This Lease will refer to this address as the
    “Property” or your “Home.” This Lease is nine (9) pages long. This is a legally binding agreement, so please read
    everything carefully. This Lease has disclosures required by the Federal Consumer Leasing Act and, where applicable, state
    law, as part of this Lease. If you have any questions regarding this Lease, please ask your SolarCity sales representative.
    This Lease is effective beginning on the day you sign it. SolarCity has provided you with a Performance Guaranty and
    Limited Warranty (the “Limited Warranty”). SolarCity has also provided you with a System guide entitled “Solar Operation
    and Maintenance Guide” (the “Guide”), which contains important operation, maintenance, service and warranty information.
    Please read the Limited Warranty and the Guide carefully.

    2. Lease Term.
    SolarCity agrees to lease you the System for 15 years 180 full calendar months), plus, if the Interconnection Date is not on
    the first day of a calendar month, the number of days left in that partial calendar month, including the Installation Date. We
    refer to this period of time as the “Lease Term.” The Lease Term begins on the Interconnection Date. The Interconnection
    Date is the date that the System is fully up and running and generating energy.

    3. Description of the Solar Panel System You Are Leasing.

    5.6 KW DC (STC) PHOTOVOLTAIC SYSTEM

    Photovoltaic Modules
    Inverter(s)
    Mounting system
    Monitoring system
    Electric meter number:
    The estimated average price per kWh over the lease term is: $0.135

    4. Lease Payments; Amounts.

    A. Amount Due at Lease
    Signing or Delivery:

    First Monthly Payment
    $ 1,000.00

    Tax on First Monthly Payment
    $0.00

    Delivery/Installation Fee
    $ __0__

    Total $ 1,000.00

    B. Monthly Payments (taxes not included):

    Your first Monthly Payment of $1,000.00 is due when
    you sign this Lease, covering the first full calendar
    month of the Lease Term, followed by 11 Monthly
    Payments of $75.01 each, followed by 12 Monthly
    Payments of $77.64 each, followed by 12 Monthly
    Payments of $80.35 each, followed by 12 Monthly
    Payments of $83.17 each, followed by 12 Monthly
    Payments of $86.08 each, followed by 12 Monthly
    Payments of $89.09 each, followed by 12 Monthly
    Payments of $92.21 each, followed by 12 Monthly
    Payments of $95.43 each, followed by 12 Monthly
    Payments of $98.78 each, followed by 12 Monthly
    Payments of $102.23 each, followed by 12 Monthly
    Payments of $105.81 each, followed by 12 Monthly
    Payments of $109.51 each, followed by 12 Monthly
    Payments of $113.35 each, followed by 12 Monthly
    Payments of $117.31 each, followed by 12 Monthly
    Payments of $121.42 each, each due on the first day of a
    calendar month, commencing with the calendar month
    following the first full calendar month. The total of your
    Monthly Payments is $18,293.64.

    Each Monthly Payment is due on the first day of a
    calendar month.

    The total amount of Monthly Payments for the Lease
    Term will be $18,293.64.

    C. Other
    Charges:
    (not part
    of the
    Monthly
    Payments)

    None.

    D. Total of
    Payments:

    (The amount you will
    have paid by the end of
    this Lease)

    $ 18,293.64 (total of
    Monthly Payments, and
    any other amounts
    specified in this Section
    4; does not include any
    additional installation
    cost or taxes)

    E. Purchase Option At End of Lease Term:

    You do not have an option to purchase the System at the end of the Lease Term.

    F. Other Important Terms: See Section 2 above for additional information on the Lease Term and also see below for additional
    information on termination, purchase options, renewal options, maintenance responsibilities, warranties, late and default charges, required
    insurance and prohibition on assignment without SolarCity’s consent.

    5. Lease Obligations.
    (a) You agree to:
    (i) make the payments required by this Lease;
    (ii) notify us within 24 hours if you discover that the System is not working correctly;
    (iii) notify us immediately upon the discovery of an emergency condition relating to the System, damage to the
    System or theft of the System;

    (iv) only have the System repaired pursuant to the Limited Warranty and reasonably cooperate with the person
    performing the repairs when repairs are being made;
    (v) keep trees, bushes and hedges trimmed so that the System receives as much sunlight as it did when SolarCity
    installed it;
    (vi) not modify your Home in a way that shades the System;
    (vii) permit SolarCity, after we give you reasonable notice, to inspect the System for proper operation as we
    reasonably determine necessary;
    (viii) not move the System, or permit anyone else to move the System, except as permitted by the Limited Warranty;
    (ix) not do anything, permit or allow to exist any condition or circumstance which would cause the system not to
    operate as intended at the Property;
    (x) not use the System to heat a swimming pool;
    (xi) use the System primarily for personal, family or household purposes;
    (xii) not remove any markings or identification tags on the System;
    (xiii) keep the panels clean, pursuant to the Limited Warranty and the Guide;
    (xiv) reasonably cooperate with SolarCity so that it may claim any tax credits, rebates or benefits from the System;
    this may include filing applications for rebates from the federal, state or local, government or a local utility and
    giving these tax credits, rebates or benefits to SolarCity. You agree that you will not claim, or take any action,
    or fail to take any action, including claiming any tax credits respecting the System on any tax return, that may
    jeopardize SolarCity’s ability to receive, such tax credits, rebates or other benefits; and
    (xv) be responsible for any non-code conditions at your Home that affect the installation and to allow SolarCity
    adequate time and access to complete the installation.

    (b) Return Fees; Late Charges; Checks. In addition to the other amounts you agree to pay in this Lease, you agree to pay
    the following:
    (i) Returned Check Fee: $25 for any check or withdrawal right that is returned or refused by your bank.
    (ii) Late payments accrue interest at twelve percent (12%) annually or the maximum allowable by applicable law.

    (c) Insurance. The System needs to be insured at all times.
    You will need All Risk coverage against damage to or loss of the System in the amount of $33,750.

    You agree to obtain and pay for the required insurance with a nationally recognized insurer of your choice. The required
    insurance may be provided through existing policies that you own or control (like your homeowner’s policy). You also
    agree to name SolarCity and anyone else designated by SolarCity as a loss payee (someone who can recover directly
    from your insurance company in the event of a loss related to the System). The insurance policy must provide for at
    least thirty (30) days’ advance notice to us of any cancellation or other material change in coverage. At our request, you
    will promptly provide us with written proof of insurance. You will promptly contact us in writing if any of the insurance
    provider information changes. You authorize us to endorse your name on any check or other instrument we receive for
    insurance proceeds. This will enable us to deposit a check we receive from your insurance company.

    NO INSURANCE COVERAGE IS INCLUDED IN THIS LEASE OR PROVIDED BY SOLARCITY.

    (d) Estimated Taxes: You agree to pay any applicable sales or use taxes on the Monthly Payments due under this Lease.
    You also agree to pay as invoiced any applicable personal property taxes on the System that your local jurisdiction may
    levy. The total estimated amount you will pay for taxes over the Lease Term is $0.00.
    (e) No Alterations. You agree that you will not make any modifications, attachments, improvements, revisions or additions
    to the System or take any other action that could void the Limited Warranty on the System without SolarCity’s prior
    written consent. If you make any modifications, attachments, improvements, revisions or additions, they will become
    part of the System and shall be SolarCity’s property.

    (f) Home Renovations. If you want to make any repairs or improvements to the Property that could interfere with the
    System (such as repairing the roof where the System is located), you may only remove and replace the System pursuant
    to the Limited Warranty.
    (g) Access to the Solar Panel System; Easement.
    (i) You grant to SolarCity and its agents, employees and contractors the right to reasonably access all of the
    Property for the purposes of (a) installing, constructing, operating, owning, repairing, accessing, removing and
    replacing the System or making any additions to the System or installing complementary technologies on or
    about the location of the System; (b) enforcing SolarCity’s rights as to this Lease and the System; (c) installing,
    using and maintaining electric lines and inverters and meters, necessary to interconnect the System to your
    electric system at the Property and/or to the utility’s electric distribution system; or (d) as reasonably necessary
    in connection with the construction, installation, operation, maintenance, removal or repair of the System. This
    access right shall continue for up to ninety (90) days after this Lease expires to provide SolarCity with time to
    remove the System at the end of the Lease. SolarCity shall provide you with reasonable notice of its need to
    access the Property whenever commercially reasonable.
    (ii) During the time that SolarCity has access rights you shall ensure that its access rights are preserved and shall
    not interfere with or permit any third party to interfere with such rights or access. If SolarCity requests, you
    will sign an easement that sets out in writing (i) SolarCity’s right to access the Property; and/or (ii) that the
    System is not a fixture. SolarCity may record this easement in the appropriate manner in the public records.
    You also grant SolarCity the right to file any UCC-1 financing statement or fixture filing that confirms its
    interest in the System.
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    Part 2

    (h) Indemnity. To the fullest extent permitted by law, you shall indemnify, defend, protect, save and hold harmless
    SolarCity, its employees, officers, directors, agents, successors and assigns from any and all third party claims, actions,
    costs, expenses (including reasonable attorneys’ fees and expenses), damages, liabilities, penalties, losses, obligations,
    injuries, demands and liens of any kind or nature arising out of, connected with, relating to or resulting from your
    negligence or willful misconduct; provided, that nothing herein shall require you to indemnify SolarCity for its own
    negligence or willful misconduct. The provisions of this paragraph shall survive termination or expiration of this Lease.
    (i) Monthly Payments. The Monthly Payments section (Section 4(B)) describes your monthly payment obligations under
    this Lease. YOU AGREE THAT THIS IS A NET LEASE AND THE OBLIGATION TO PAY ALL MONTHLY
    PAYMENTS AND ALL OTHER AMOUNTS DUE UNDER THIS LEASE SHALL BE ABSOLUTE AND
    UNCONDITIONAL UNDER ALL CIRCUMSTANCES AND SHALL NOT BE SUBJECT TO ANY ABATEMENT,
    DEFENSE, COUNTERCLAIM, SETOFF, RECOUPMENT OR REDUCTION FOR ANY REASON WHATSOEVER,
    IT BEING THE EXPRESS INTENT OF THE PARTIES THAT ALL AMOUNTS PAYABLE BY YOU
    HEREUNDER SHALL BE AND CONTINUE TO BE PAYABLE IN ALL EVENTS INCLUDING BY YOUR
    HEIRS AND ESTATE AND, EXCEPT AS SET FORTH BELOW, YOU HEREBY WAIVE ALL RIGHTS YOU
    MAY HAVE TO REJECT OR CANCEL THIS LEASE, TO REVOKE ACCEPTANCE OF THE SYSTEM, OR TO
    GRANT A SECURITY INTEREST IN THE SYSTEM.
    (j) Lease Obligations Separate from Limited Warranty. You acknowledge that SolarCity’s obligations under this Lease are
    separate and independent from its obligations under the Limited Warranty, that no breach of the provisions of the
    Limited Warranty will be a default by SolarCity under this Lease, and that a breach by SolarCity of its obligations under
    the Limited Warranty will not give rise to any rights or recourse against SolarCity or any right to offset amounts due
    under this Lease. You also acknowledge that this Lease may be assigned separately from the Limited Warranty.

    6. Conditions Prior to Installation of the System.
    SolarCity’s obligation to install and lease the System are conditioned on the following items having been completed to its
    reasonable satisfaction:

    (a) completion of a physical inspection of the Property, including if applicable geotechnical work, and real estate due
    diligence to confirm the suitability of the Property for the construction, installation and operation of the System;
    (b) approval of this Lease by its financing partner(s);
    (c) confirmation that it will obtain all applicable benefits referred to in Section 9; and
    (d) receipt of all necessary zoning, land use and building permits.

    (e) SolarCity may terminate this Lease without liability if, in its reasonable judgment, any of the above listed conditions
    will not be satisfied for reasons beyond its reasonable control.

    7. Warranty.
    The Limited Warranty is separate from this Lease. No rights provided to you by the Limited Warranty may be asserted under
    this Lease. No warranty is made in this Lease. Therefore, any warranty claim must be made independently of this Lease and
    will not affect your obligations under this Lease.

    YOU UNDERSTAND THAT THE SYSTEM IS WARRANTED UNDER THE LIMITED WARRANTY, AND THAT
    THERE ARE NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE
    MERCHANTABILITY, FITNESS FOR ANY PURPOSE, CONDITION, DESIGN, CAPACITY, SUITABILITY OR
    PERFORMANCE OF THE SYSTEM OR ITS INSTALLATION, AND YOU LEASE THE SYSTEM “AS IS.”

    8. Transfer.
    SolarCity may assign, sell or transfer the System and this Lease. Assignment, sale or transfer generally means that SolarCity
    would transfer certain of its rights and certain of its obligations under this Lease to another party. Upon such transfer,
    SolarCity Corporation shall retain, and the other party will have no obligation for, SolarCity Corporation’s installation
    obligations under Section 1 and its obligations under the Limited Warranty or the Guide.

    9. Ownership of the System; Tax Credits and Rebates.
    You understand and agree that this is a lease and not a sale agreement. SolarCity owns the System for all purposes, including
    any data generated from the system. You shall at all times keep the System free and clear of all liens, claims, levies and legal
    processes not created by SolarCity, and shall at your expense protect and defend SolarCity against the same.

    YOU UNDERSTAND AND AGREE THAT ANY AND ALL TAX CREDITS, INCENTIVES, RENEWABLE ENERGY
    CREDITS, GREEN TAGS, CARBON OFFSET CREDITS, UTILITY REBATES OR ANY OTHER NON-POWER
    ATTRIBUTES OF THE SYSTEM ARE THE PROPERTY OF AND FOR THE BENEFIT OF SOLARCITY, USABLE AT
    ITS SOLE DISCRETION. SOLARCITY SHALL HAVE THE EXCLUSIVE RIGHT TO ENJOY AND USE ALL SUCH
    BENEFITS, WHETHER SUCH BENEFITS EXIST NOW OR IN THE FUTURE.

    10. Options to Purchase the Solar Panel System Prior to the End of the Lease Term.
    You may not purchase the System prior to the end of the Lease Term.

    11. Option to Renew Your Lease.
    You have the option to renew your Lease Term for up to fifteen (15) years in three (3) five (5) year renewal periods. We will
    send you renewal forms three (3) months prior to the expiration of the Lease Term, which forms shall set forth the new
    Monthly Payments due under the renewal Lease, based on our assessment of the then current fair market value of the System.
    If you want to renew and you are in compliance with this Lease, complete the renewal forms and return them to us at least
    one (1) month prior to the end of the Lease. In the event that you do not agree to the new Monthly Payments or do not
    submit a renewal form, the Lease shall expire by its terms on the termination date.

    12. Selling Your Home.
    (a) If you sell your home you can:
    (i) Transfer this Lease and the Monthly Payments. If the person buying your Home meets SolarCity’s credit
    requirements, then the person buying your Home can sign a transfer agreement assuming all of your rights
    and obligations under this Lease.
    (ii) Prepay this Lease and Transfer only the Use of the System. If the person buying your home does not meet
    SolarCity’s credit requirements, but still wants the System, then you can (i) prepay the payments remaining on
    the Lease (See section 16(f)(i) and (ii)), (ii) add the cost of the Lease to the price of your home; and (iii) have
    the person buying your Home sign a transfer agreement to assume your rights and non-Monthly Payment
    obligations under this Lease. The System stays at your Home, the new owner of your Home does not make any
    Monthly Payments and has only to comply with the non-Monthly Payment portions of this Lease.
    (iii) Prepay this Lease and Remove the System after Six Years. If your System has been installed for at least six (6)
    years (72 months) and the person buying your home does not want the System, you may prepay the payments
    remaining on the Lease (See section 16(f)(i) and (ii)). Your right to have the System removed at no cost to you
    in such case is covered by the Limited Warranty.
    (iv) Move the System to your new Home. If you are moving to a new home in the same utility district, the System
    can be moved to your new home only pursuant to the Limited Warranty. You will need to pay all costs
    associated with relocating the System, execute and deliver to SolarCity an easement for the replacement
    premises and provide any third party consents or releases required by SolarCity in connection with the
    substitute premises.

    (b) You agree to give SolarCity at least one (1) month’s but not more than three (3) months’ prior written notice if you want
    someone to assume your Lease obligations. In connection with this assumption, you, your approved buyer and
    SolarCity shall execute a written transfer of this Lease. SolarCity may charge you a transfer review fee of two hundred
    fifty dollars ($250). Unless we have released you from your obligations in writing, you are still responsible for
    performing under this Lease. If your buyer defaults on this Lease and we have not yet signed the transfer agreement,
    you will be responsible for its default. We will release you from your obligations under this Lease in writing once we
    have a signed transfer agreement with the person buying your Home (provided such person has been approved as a
    transferee by SolarCity in writing).
    (c) If you sell your home and can't comply with any of the options in subsection (a) above, you will be in default under this
    Lease. Section 12(a) includes a home sale by your estate or heirs.
    (d) EXCEPT AS SET FORTH IN THIS SECTION, YOU WILL NOT SUBLEASE, ASSIGN, SELL, PLEDGE OR IN
    ANY OTHER WAY TRANSFER YOUR INTEREST IN THE SYSTEM OR THIS LEASE WITHOUT OUR PRIOR
    WRITTEN CONSENT, WHICH SHALL NOT BE UNREASONABLY WITHHELD.

    13. Loss or Damage.
    (a) You agree to bear all of the risk of loss, damage, theft, destruction or similar occurrence of any or all of the System
    during the time the System is (i) installed on the Property, (ii) while the System is being installed on the Property, or
    (iii) after a default under this Lease, while the System is being removed from the Property. Except as expressly
    provided in this Lease, no loss, damage, theft or destruction will excuse you from your obligations under this Lease,
    including Monthly Payments. The insurance you provide on the System will protect you from the financial burden of
    loss or damage to the System; this is why we require the System to be insured.
    (b) If there is loss, damage, theft, destruction or a similar occurrence affecting the System, and you are not in default of this
    Lease, you shall within thirty (30) days after such occurrence (a) continue to timely make all Monthly Payments and
    pay all other amounts due under the Lease and, within a commercially reasonable time at your sole cost and expense,
    have the System repaired pursuant to the Limited Warranty; or (b) if the System cannot be repaired (with insurance
    proceeds plus any additional monies required) pay SolarCity all amounts described in Section 16(f).
    (c) SolarCity shall have the right, but not the obligation, to repair or remedy any defective or dangerous condition with
    respect to the System and bill you for the reasonable cost and expense of such repairs. Some or all of these obligations
    may be covered by the Limited Warranty.
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    Part 3

    14. Limitation of Liability.
    (a) No Consequential Damages. SOLARCITY’S LIABILITY TO LESSEE UNDER THIS LEASE SHALL BE
    LIMITED TO DIRECT, ACTUAL DAMAGES ONLY. LESSEE AGREES THAT IN NO EVENT SHALL EITHER
    PARTY BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY,
    SPECIAL OR INDIRECT DAMAGES.
    (b) Actual Damages. Except for claims under section 5(h), neither party’s liability to the other will exceed an amount
    equal to the maximum amount that could be payable by you under Section 16(f). Damages to your home or property
    during the installation of the System or resulting from the System are covered in the Performance Guaranty and
    Limited Warranty Agreement provided by SolarCity.

    15. Default.
    You will be in default under this Lease if any one of the following occurs:

    (a) you fail to make any payment when it is due and such failure continues for a period of ten (10) days;
    (b) you fail to perform any material obligation that you have undertaken in this Lease (which includes doing something you
    have agreed not to do, like alter the System) and such failure continues for a period of fifteen (15) days after written
    notice;
    (c) you or your guarantor have provided any false or misleading financial or other information to obtain this Lease;
    (d) you assign, transfer, encumber, sublet or sell this Lease or any part of the System without SolarCity’s prior written
    consent;
    (e) you fail to provide the required insurance on the System or fail to provide proof of such coverage after we request it; or
    (f) you or any guarantor makes an assignment for the benefit of creditors, admits in writing its insolvency, files or there is
    filed against you or it a voluntary petition in bankruptcy, is adjudicated bankrupt or insolvent or undertakes or
    experiences any substantially similar activity.

    16. Remedies in Case of Default.
    If this Lease is in default, we may take any one or more of the following actions. If the law requires us to do so, we will give
    you notice and wait any period of time required before taking any of these actions. We may:

    (a) terminate this Lease and your rights to possess and use the System;
    (b) take any reasonable action to correct your default or to prevent our loss (including, for example, purchasing insurance
    that you agreed to provide); any amount we pay will be added to the amount you owe us and will be immediately due;
    (c) require you, at your expense, to return the System or make it available to us in a reasonable manner;
    (d) proceed, by appropriate court action, to enforce performance of this Lease and to recover damages for your breach;
    (e) take back the System by legal process or self-help, but we may not breach the peace or violate the law;
    (f) recover from you (i) all accrued but unpaid monthly payments, taxes, late charges, penalties, interest and all or any other
    sums then accrued or due and owing, plus (ii) the unpaid balance of the aggregate rent, each payment discounted to
    present value at 5% per annum, plus (iii) reasonable compensation, on a net after tax basis assuming a tax rate of 35%,
    for the loss or recapture of (A) the investment tax credit equal to thirty percent (30%) of the System cost, including
    installation; and (B) accelerated depreciation over five (5) years equal to eighty five percent (85%) of the System cost,
    including installation, and for the loss of any anticipated benefits pursuant to Section 9 of the Lease (SolarCity shall
    furnish Lessee with a detailed calculation of such compensation if a claim is made therefore); or
    (g) use any other remedy available to us in this Lease or by law.

    You agree to repay us for any reasonable amounts we pay to correct or cover your default. You also agree to reimburse us
    for any costs and expenses we incur relating to the System’s return resulting from early termination. By choosing any one
    or more of these remedies, SolarCity does not give up its right to use another remedy. By deciding not to use any
    remedy should this Lease be in default, SolarCity does not give up our right to use that remedy in case of a subsequent
    default.
    17. Returning the System at the End or upon Termination of This Lease; Early Termination.

    (a) Returning the Solar Panel System at the End or Termination of This Lease. If you don’t renew this Lease, then there are
    three (3) possibilities with respect to returning or keeping the System at the end or termination of this Lease:
    (i) If at the end or termination of this Lease Term you have not defaulted on this Lease, then within ninety (90)
    days:
    (A) SolarCity may at its choosing, remove the System from your home at no cost to you; or
    (B) if SolarCity does not tell you that it wants to remove the System and you want to have the System
    removed from your Home at no cost to you, you must make a claim under the Limited Warranty which
    governs your rights in this respect.

    (ii) If at the end or termination of this Lease you are in default, and SolarCity chooses to remove the System from
    your Home then you agree to pay SolarCity the reasonable expense of removing the System from your Home.
    (iii) If at the end or termination of this Lease SolarCity chooses not to remove the System and you do not require
    removal within 90 days pursuant to the Limited Warranty, then you will be considered to be the new owner of
    the System and it will automatically be conveyed to you AS IS, WHERE IS.

    (b) Early Termination after 6 years. If your System has been installed for less than six (6) years (72 months), you are not
    entitled to terminate the Lease. If your System has been installed for at least six (6) years (72 months) and you want to
    terminate the Lease, SolarCity will remove the System from your Home upon your payment of (x) an amount equal to
    the cost of de-installation and transportation, (y) the cost to repair any damage to the System for which you are
    responsible under this Lease, and (z) the amounts remaining on the Lease (See section 16(f)(i) and (ii)).
    (c) You will also have the right to terminate this Lease, without penalty or fee, if we determine after a site audit that we
    have misestimated the kilowatt size of the System your Home will require by more than ten percent (10%). Such
    termination right will expire at the earlier of (i) the date we commence installation of the System and (ii) one (1) month
    after we inform you in writing of the revised size estimate.

    18. Applicable Law; Arbitration.
    The laws of the state where your Home is located shall govern this Lease without giving effect to conflict of laws principles.
    We agree that any dispute, claim or disagreement between us shall be resolved by arbitration. Judgment on an arbitrator’s
    award may be entered in any court having jurisdiction. All statutes of limitations that are applicable to any dispute shall
    apply to any arbitration between us.

    Each arbitration, including the selecting of the arbitrator, will be administered by JAMS/Endispute, LLC under its
    Commercial Arbitration Rules and, in addition, the Due Process Protocol for Mediation and Arbitration of Consumer

    Disputes most recently in effect. Arbitration will be governed by the Federal Arbitration Act (Title 9 of the U.S. Code).
    Either party can initiate an arbitration proceeding by filing the necessary forms with JAMS. To learn more about arbitration,
    you can call any JAMS office or review the materials at www.jamsadr.com. If a JAMS office does not exist in the county
    where you are located, another arbitrator will be agreed upon or if no other arbitrator can be agreed upon, then we will use the
    AAA office closest to your Home.

    You and we shall each bear our own costs and expenses, including attorneys’ fees, with respect to any arbitration. However,
    if under the circumstances relating to the dispute it is determined by the arbitrator that it would be unconscionable or
    otherwise inappropriate for you to pay the JAMS filing and all other fees associated with the arbitration, we will pay those
    fees for you.

    Only disputes involving you and us may be addressed in the arbitration. You agree that you cannot not pursue any dispute as
    a “class action” unless the amount in dispute between us is less than three thousand dollars ($3,000), not including any claim
    you might bring for attorneys fees or punitive or exemplary damages. This means that the arbitration may not address
    disputes involving other persons which may be similar to the disputes between you and us.

    The arbitrator shall have the authority to award any legal or equitable remedy or relief that a court could order or grant. The
    arbitrator, however, is not authorized to change or alter the terms of this Lease or to make any award that would extend to any
    transaction other than your own. The prevailing party in any arbitration or court action will be entitled to recover as part of
    the award its costs and reasonable attorneys’ fees and expenses.

    Because we have agreed to arbitrate all disputes, neither of use will HAVE THE RIGHT TO LITIGATE THAT DISPUTE
    IN COURT, OR TO HAVE A JURY TRIAL ON THAT DISPUTE, OR ENGAGE IN DISCOVERY EXCEPT AS
    PROVIDED FOR IN THE JAMS RULES. FURTHER, YOU WILL NOT HAVE THE RIGHT TO PARTICIPATE AS A
    REPRESENTATIVE OR MEMBER OF ANY CLASS PERTAINING TO ANY DISPUTE UNLESS THE AMOUNT IN
    DISPUTE IS LESS THAN THREE THOUSAND DOLLARS ($3,000) NOT INCLUDING ANY CLAIM YOU MIGHT
    BRING FOR ATTORNEYS’ FEES OR PUNITIVE OR EXEMPLARY DAMAGES. THE ARBITRATOR’S DECISION
    WILL BE FINAL AND BINDING, EXCEPT TO THE EXTENT IT IS SUBJECT TO REVIEW IN ACCORDANCE WITH
    APPLICABLE LAW GOVERNING ARBITRATION AWARDS. OTHER RIGHTS THAT YOU OR WE WOULD HAVE
    IN COURT MAY ALSO NOT BE AVAILABLE IN ARBITRATION.

    If any portion of this section of this Lease is determined to be unenforceable, the remaining provisions shall be enforced in
    accordance with their terms or shall be interpreted or re-written so as to make them enforceable.

    19. Waiver.
    Any delay or failure of a party to enforce any of the provisions of this Lease, including but not limited to any remedies listed
    in this Lease, or to require performance by the other party of any of the provisions of this Lease, shall not be construed to
    (i) be a waiver of such provisions or a party’s right to enforce that provision; or (ii) affect the validity of this Lease.

    20. Notices.
    All notices under this Lease shall be in writing and shall be by personal delivery, facsimile transmission, electronic mail,
    overnight courier, or certified, or registered mail, return receipt requested, and deemed received upon personal delivery,
    acknowledgment of receipt of electronic transmission, the promised delivery date after deposit with overnight courier, or five
    (5) days after deposit in the mail. Notices shall be sent to the person identified in this Lease at the addresses set forth in this
    Lease or such other address as either party may specify in writing. Each party shall deem a document faxed to it as an
    original document.
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing

    Part 4

    21. Entire Agreement; Changes.
    This Lease contains the parties’ entire agreement regarding the lease of the System. There are no other agreements regarding
    this Lease, either written or oral. Any change to this Lease must be in writing and signed by both parties. If any portion of
    this Lease is determined to be unenforceable, the remaining provisions shall be enforced in accordance with their terms or
    shall be interpreted or re-written so as to make them enforceable. Provisions that should reasonably be considered to survive
    termination of this Lease shall survive, including, without limitation, Sections 5(c), 5(d), 5(e), 5(f), 5(g), 5(h), 14, 16 and 18.

    22. Right to Cancel
    You may cancel this Lease at any time prior to 5 p.m. of the 30th calendar day after the date you sign this Lease. If that day
    is a holiday, you will have until the next day that is not a holiday to cancel this Lease. The notice of cancellation must be
    given pursuant to Section 20 to SolarCity at its address in this Lease, but must be actually received by SolarCity.

    I have read this Lease in its entirety and I acknowledge that I have received a complete copy of this Lease.

    Owner’s Name: XXXXXXXXXXXXXXX Co-Owner’s Name (if any):

    Signature: _________________________ Signature: __________________________________

    Date: _____________________________ Date: ______________________________________

    SOLARCITY CORPORATION

    By (signature): _____________________

    Printed Name: Charles Ferer

    Title: CFO

    Date: _____________________________
  • BB.BB. Posts: 28,079Super Moderators, Administrators admin
    Re: residential leasing

    Thank you very much for the hard work. I am sure lots of people will be interested.

    -Bill
    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
  • JburgessJburgess Posts: 130Solar Expert ✭✭
    Re: residential leasing
    BB. wrote: »
    Thank you very much for the hard work. I am sure lots of people will be interested.

    -Bill

    Thanks for the clean up.
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