Purchase or Pre-paid lease of 4-year old Solar System

[inetdog]

The only thing I signed was acknowledgement of the fixture filing but I thought that because I signed it thay I could not legally turn the system on because it would be using someone else's system.

Probably technically true unless SC abandoned it.
That would seem to be the only leverage they have in negotiation.

[Ian S]

The only thing I signed was acknowledgement of the fixture filing but I thought that because I signed it thay I could not legally turn the system on because it would be using someone else's system.

Then there's the whole issue of making sure the meter is properly set up to provide net metering and that you have an appropriate rate plan with the utility before you try turning it on.

[prhamilton]

Probably safest not to use it but it seems silly. If they don't want you to use it then they should come and take it away. Sorry if I missed it but did you ever talk with SC? Personally I would turn it on and never call them. If they want it back they can come and get it but you got an ugly thing clamped to your house, not using it seems a shame. And what are the SC losses if you run it? If you don't run it, your are damaging the environment, think of the polar bears you could save...

Of course if you get sued to oblivion by a legion of Solar City Lawyers I withdraw any of the advice previously given.

[prhamilton]

Sure call PGE but the NEM interconnection was already done and that won't change between owners. It would be smart to verify you are on NEM and that your meter is good to go with a quick call to PGE, you could also tell from your PGE statements.

[inetdog]

Sure call PGE but the NEM interconnection was already done and that won't change between owners. It would be smart to verify you are on NEM and that your meter is good to go with a quick call to PGE, you could also tell from your PGE statements.

Absolutely a great idea.
When the contracting party for the PGE account changed, the default account configuration may well have changed too.
If you will not be using the PV, you will also have different rate and TOU plans available than with PV.

[prhamilton]

Its the same as PGE all regulated by CPUC, net metering is the same across California. Call SCE and explain the situation, you bought a house, the solar was turned off and you want to make sure its ok to turn it back on. They will be happy you called and will probably send someone to help you in 6-8 months

[inetdog]

I am actually on SCE, does anyone know anything about solar with SCe?

Different tariffs, different rates, different requirements on system config to get an interconnect agreement. Other than that pretty much the same.

[quicksilver8907]

So talked to SolarCity today, they told me the property is not abandoned and that they would not accept my $4000 offer, so we will see what happens next. My guess is they are just playing hardball.

[russ]

Clauses from an old Solar City lease that we reviewed a few years back -

(vii) permit SolarCity, after we give
you reasonable notice, to inspect
the System for proper operation
as we reasonably determine
necessary;

(e) Insurance
SolarCity shall insure the System
against all damage or loss unless (i)
that damage or loss is caused by your
gross negligence; or (ii) you
intentionally damage the System.

(h) Access to the Solar Panel
System
(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,
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) taking any other
action 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. You agree that the System
is not a fixture, but SolarCity has
the right to file any UCC-1
financing statement or fixture
filing that confirms its interest
in the System.

(j) 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 IN SECTIONS 6,
23 AND 24, 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.

10. OPTION TO PURCHASE THE SYSTEM PRIOR TO
THE END OF THE LEASE TERMYou may not purchase the System prior to
the end of the Lease Term.

16. REMEDIES IN CASE OF DEFAULT
(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 you with a
detailed calculation of such
compensation if a claim is made
therefore); or

[russ]

So talked to SolarCity today, they told me the property is not abandoned and that they would not accept my $4000 offer, so we will see what happens next. My guess is they are just playing hardball.

For others in a similar situation - do your homework before you buy rather than "hope" to get lucky.

[prhamilton]

Russ unless I am missing something, he didn't sign the lease. He bought a house that still had the panels after someone defaulted on the lease. I think he did his homework. He signed paper acknowledging he didn't own the panels and presumably didn't pay anything for them during the home purchase. The ball is really in SC court to see how they want to close out the defaulted lease. He made an offer to purchase that they rejected. I personally won't call them again and hope they forget about the system. I would SCE to verify you can interconnect and fire the system up.

[quicksilver8907]

I did do my homework, I consulted an attorney and had them review the lease and made sure that I had no financial obligation to continue the lease and I didn't purchase the house because of the solar panels. I honestly didn't care if we had to have them removed. We had a roofer certify the roof and he offered to be there if and when they remove the panels. Yes it would be awesome if I could get a great deal on the panels but if they don't want to sell them to me for a good price than so be it.

[prhamilton]

Keep us posted. Interested in how this turns out. Did you call SCE? What did they say?

[quicksilver8907]

Haven't called sce yet. Just don't want to get sued for turning it on by solarcity.

[prhamilton]

Then I would send Solar City a letter and say they have 30 days to remove the panels from the roof or provide terms for purchase or lease. If you don't hear from them in 30 days you should consider the property abandoned. It's your house, you shouldn't have to wait for them to get their act together. You are providing free real storage of old panels, start charging them a storage fee or use the panels and call it even