SunPower Early Buyout Time

[DavidWisAZ]

Purchased our home 1 year ago with solar panels (we assumed the lease) and now have our EBO offer from SunPower.

BACKSTORY: Original owner installed panels in 2014. Due to death, original owner spouse lost home which was then purchased by investor. We purchased from investor in 2020.

Now, in Year 7, we have our EBO opportunity.

Remaining lease payments (13 years) = $22,054. In Year 20, per the lease agreement, Remaining Value Amount = $20,402. If I am understanding the lease agreement correctly, to carry the lease to the end (2034) and then buy it out would cost me $42,456.

SunPower quoted $34,732 for the buyout amount.

Does anyone have any experience with SunPower in negotiating a different EBO amount?

What typically happens at the end of the lease when no extension or buyout occurs? Will SunPower just come remove the panels?

8.7.3

Wanted to add what the system is:
Solar modules manufactured by SunPower Corporation: (module model and quantity): SPR-327NE-WHT-D SunPower (36)
Inverter(s) brand and model number(s) Powerone- PVI-5000-OUTD-US-A - 240v (SPR-5001p-TL)(2)

[hayhayday]

Is there an option to prepay the remaining 13 years of payments at a discount? I would count the free removal of a 20 year old system when the time came a plus and wouldnt pay 13k extra now to buy it out.

[DavidWisAZ]

Is there an option to prepay the remaining 13 years of payments at a discount? I would count the free removal of a 20 year old system when the time came a plus and wouldnt pay 13k extra now to buy it out.

Thank you for the response.

There is no apparent option to buy it out via prepaying the remaining years at a discount. I actually thought that is where the EBO offer would come in at otherwise where is my incentive to buy it out?

[NWFPat]

DavidWisAZ,

I am considering a 34 panel (340W/panel QCell) system with Enphase IQ7+ micro inverters (about 10kW AC) with an installed price of $25-27K (after 26% Federal tax credit) - this seems less expensive than your EBO - even if it is the same price, would it make more business sense to simply remove the current rented system and restart the warranty and reliability clock with a new system?

Are there restrictions with the EBO that would preclude this approach?

[DavidWisAZ]

DavidWisAZ,

I am considering a 34 panel (340W/panel QCell) system with Enphase IQ7+ micro inverters (about 10kW AC) with an installed price of $25-27K (after 26% Federal tax credit) - this seems less expensive than your EBO - even if it is the same price, would it make more business sense to simply remove the current rented system and restart the warranty and reliability clock with a new system?

Are there restrictions with the EBO that would preclude this approach?

I do not see anything in the lease agreement that would allow me to do that. Great idea, though!

[NWFPat]

Sorry - I forgot you assumed the lease - is there an angle to simply defaulting on the lease, and replacing? Those numbers seem pretty crazy.

[DavidWisAZ]

Sorry - I forgot you assumed the lease - is there an angle to simply defaulting on the lease, and replacing? Those numbers seem pretty crazy.

I agree that the numbers are crazy. No good angle to defaulting on the lease, just problems if that happened!

Looking like I will just finish out the lease and see if they come and take it or convey it in 13 years.

[DavidWisAZ]

Just wanted to put an ending on my post.

I called SunPower asking about negotiating the EBO and the rep was "pretty sure" it was a fixed amount. I then sent an email to the lease buyout team asking if any negotiation was possible as I was interested in doing the EBO, but not at the number they provided. Their response:

We are happy to hear that you are very interested to purchase your system.
Please be advise that the provided EBO amount is non-negotiable. Note that EBO is also the lowest possible sale amount you can pay for the system you have. This is a one time offer you can take advantage until 08/01/2021.

You may still request for a buyout amount anytime after your EBO date, however the numbers may be higher, but you can definitely purchase your system anytime you are ready.

Decided to finish out the lease and in 13 years will see if they come and remove it or convey it. 8.7.3

[azdave]

I called SunPower asking about negotiating the EBO...

Thanks for the follow-up post. SunPower knows quite well that you are in no position to bargaining so they have no reason to offer you a better deal. Unfortunately, your time to bargain was before you purchased the home.