5kW system in NJ

[joaop]

I Can't really comment on whether this is a good deal or not but as a Realtor just want to throw out the following question??

Are you planning on staying inthe property for the entire lease period? While the lease of course can be assumed that will be the decision of the buyer and not you (it will be their decision) and if they elect not to assume the lease what is the recourse of the leasing company? Will you be required to continue to pay for it, remove it, pay it off to sell???

Today Fannie Mae and Freddie Mac (Read conventional loans) will not allow you to get a new loan to purchase or refinance unless and until the entity holding a lease will subordinate....is this guaranteed in the lease paperwork?? All in all it is always much cleaner to purchase vs. lease a solar system strictly from a transfer/sale standpoint but this is not to say that leasing won't work in many circumstances, just something that you need to be mindful of while making your decision.

Very few Solar salespeople even know about these issues and will Pooh, Pooh them as "that will never happen", but in the real world of selling a house with Solar installed today leases are an issue. Good luck and just be aware of these issues during your decision process.Cheers!

Thanks for the heads up.

I've thought about it and my plan is to purchase the system in year five. In looking at the paperwork it's approximately $8500 to buy it in year five.

I just bought the house, so I don't anticipate selling anytime soon.

[paul65k]

Hi all,Wanted to get some opinions on a system I am looking at.It is a lease through one of the larger companies. Approximately $60 a month for 20 years on a 5kW system.Total cost is approximately $14,400 which comes out to about $2.8 per watt. Seems almost too good to be true, but NJ is very incentive laden with their SREC program.My other option would be to just get my own system , but I feel like at the cost above...it's actually a really good deal.Thoughts?

I Can't really comment on whether this is a good deal or not but as a Realtor just want to throw out the following question??

Are you planning on staying inthe property for the entire lease period? While the lease of course can be assumed that will be the decision of the buyer and not you (it will be their decision) and if they elect not to assume the lease what is the recourse of the leasing company? Will you be required to continue to pay for it, remove it, pay it off to sell???

Today Fannie Mae and Freddie Mac (Read conventional loans) will not allow you to get a new loan to purchase or refinance unless and until the entity holding a lease will subordinate....is this guaranteed in the lease paperwork?? All in all it is always much cleaner to purchase vs. lease a solar system strictly from a transfer/sale standpoint but this is not to say that leasing won't work in many circumstances, just something that you need to be mindful of while making your decision.

Very few Solar salespeople even know about these issues and will Pooh, Pooh them as "that will never happen", but in the real world of selling a house with Solar installed today leases are an issue. Good luck and just be aware of these issues during your decision process.Cheers!

[joaop]

Hi all,

Wanted to get some opinions on a system I am looking at.

It is a lease through one of the larger companies. Approximately $60 a month for 20 years on a 5kW system.

Total cost is approximately $14,400 which comes out to about $2.8 per watt.

Seems almost too good to be true, but NJ is very incentive laden with their SREC program.

My other option would be to just get my own system , but I feel like at the cost above...it's actually a really good deal.

Thoughts?