Premature Sunpower lease buyout option after several years - is it still alive ?

[KRenn]

I still have problem to see what is the benefit of the EBO, if I am staying in the house, beside some flexibility like selling the system and getting a more modern one, of tinker with it (or be responsible for a failed inverter). Can you point me to any advantage of the EBO in full prepaid lease?

The advantage? It's a buyout. I believe it is the only lease out there that allows you to take full ownership of the system prior to the 20 year mark. Is that good/bad, that all depends on your circumstances, whether you're keeping the home, selling it, etc, but it does give you an option.

[SoCalsolar]

Advantages of an EBO...

1.SRECs if offered
2. known cost after 20 years.
3. Easier to sell home.

How much is that worth?

IDK

The sales pitch now on the EBO should go something like this...

Salesguy "Mr. Customer, so you can own this system in the 7th year of production."

Mr. Customer "Oh wow that sounds great so this a lease to buy opportunity?"

SG "It certainly is. This is a great way to go solar! let me explain."

"On one day in the seventh year of production the gracious company we now refer to as SP will allow you to pay a price that is at least the amount detailed in addendum C paragraph 2 under the heading The EBO is worthless."

MC "Oh really I like surprises."

SG " Yes a surprise it is. The company that sells you this item will find some one they say is impartial and you will believe them. That impartial person will then determine the value of these magnificent panels that are now selling for twice the price everyone elses panels are selling for right now. Oh and gets better if the price of these magical panels happens to be higher than the price in the EBO you will pay the higher price. In fact this is so great your panels will almost certainly appraise for the same price that the guy who put no money down on his system. So we have this acronym (EBO) that simply means you will be offered a buy out at an undisclosed price for one day during the 7th production year and again at the conclusion of the lease."

MC "Oh really tell me more!"

SG "Sign here and I will tell you everything you want to hear."

[inetdog]

1.SRECs if offered
2. known cost after 20 years.
3. Easier to sell home.

How much is that worth?

IDK

The sales pitch now on the EBO should go something like this...

Salesguy "Mr. Customer, so you can own this system in the 7th year of production."

Mr. Customer "Oh wow that sounds great so this a lease to buy opportunity?"

SG "It certainly is. This is a great way to go solar! let me explain."

"On one day in the seventh year of production the gracious company we now refer to as SP will allow you to pay a price that is at least the amount detailed in addendum C paragraph 2 under the heading The EBO is worthless."

MC "Oh really I like surprises."

SG " Yes a surprise it is. The company that sells you this item will find some one they say is impartial and you will believe them. That impartial person will then determine the value of these magnificent panels that are now selling for twice the price everyone elses panels are selling for right now. Oh and gets better if the price of these magical panels happens to be higher than the price in the EBO you will pay the higher price. In fact this is so great your panels will almost certainly appraise for the same price that the guy who put no money down on his system. So we have this acronym (EBO) that simply means you will be offered a buy out at an undisclosed price for one day during the 7th production year and again at the conclusion of the lease."

MC "Oh really tell me more!"

SG "Sign here and I will tell you everything you want to hear."

Nominated for three Oscars, two Tony awards, and a miscellaneous Country Music award.

[KRenn]

1.SRECs if offered
2. known cost after 20 years.
3. Easier to sell home.

How much is that worth?

IDK

The sales pitch now on the EBO should go something like this...

Salesguy "Mr. Customer, so you can own this system in the 7th year of production."

Mr. Customer "Oh wow that sounds great so this a lease to buy opportunity?"

SG "It certainly is. This is a great way to go solar! let me explain."

"On one day in the seventh year of production the gracious company we now refer to as SP will allow you to pay a price that is at least the amount detailed in addendum C paragraph 2 under the heading The EBO is worthless."

MC "Oh really I like surprises."

SG " Yes a surprise it is. The company that sells you this item will find some one they say is impartial and you will believe them. That impartial person will then determine the value of these magnificent panels that are now selling for twice the price everyone elses panels are selling for right now. Oh and gets better if the price of these magical panels happens to be higher than the price in the EBO you will pay the higher price. In fact this is so great your panels will almost certainly appraise for the same price that the guy who put no money down on his system. So we have this acronym (EBO) that simply means you will be offered a buy out at an undisclosed price for one day during the 7th production year and again at the conclusion of the lease."

MC "Oh really tell me more!"

SG "Sign here and I will tell you everything you want to hear."

I sort of disagree, I think more than likely Sun power is going to want to get these panels off the books and will try to find ways to make that FMV estimate wind up as favorable as possible. Once you've put down that prepaid payment, they don't expect another penny from you for the next 20 years. If you're willing to pay a certain amount of money to buy the system out meaning they no longer have to provide the full extensive warranty and insurance for the remainder of the term, I think they're more than willing to provide a lucrative price because at that point the system is no longer an asset to them but a liability.

[SoCalsolar]

Isn't a PPD lease 24 panel 327 with a 7000sma the same as..

I agree that SP wants the PPDs off their book I just don't see how they can facilitate it with getting all jiggy with the numbers and the appraisal process.

Isn't a PPD lease for 24 327 panels with a 7000sma the same as a month to month 24 327 panels with a 7000 sma if they are both 7 years old?
How can you appraise one system differently if they are the same with the exception of how they were paid for?

Even if the books would like them to be priced differently. Although I imagine in 7 years SP will know a lot of appraisers who may have a specific talent for appraising PPD and not month to month systems.

[kimo]

I am not sure if I would lease a system unless I know what the 6 year purchase price will be when I sign the contract. It seems like you should get more of a break, not less, when you put down a good chunk of money up front.

[KRenn]

I am not sure if I would lease a system unless I know what the 6 year purchase price will be when I sign the contract. It seems like you should get more of a break, not less, when you put down a good chunk of money up front.

Why would that matter? You're not required to ever purchase the system. If the price is too high, then you have them still warranty, maintain and insure it for you for another 14 years. The price you're paying up-front is for the full 20 years of the system. The only time I think a buyout would make sense is if you're selling the home and in that situation, from what I've been told, Sun power does guarantee a certain pricepoint.

[Ian S]

Why would that matter? You're not required to ever purchase the system. If the price is too high, then you have them still warranty, maintain and insure it for you for another 14 years. The price you're paying up-front is for the full 20 years of the system. The only time I think a buyout would make sense is if you're selling the home and in that situation, from what I've been told, Sun power does guarantee a certain pricepoint.

Even though I'm one of the "lucky" ones who got the SP lease with the defined EBO price, it was never a make or break deal for me. At the time, my key factors were price and quality of the SP system and the company behind it. EBO at a pre-determined price was just icing on the cake.

[kimo]

Why would that matter? You're not required to ever purchase the system. If the price is too high, then you have them still warranty, maintain and insure it for you for another 14 years. The price you're paying up-front is for the full 20 years of the system. The only time I think a buyout would make sense is if you're selling the home and in that situation, from what I've been told, Sun power does guarantee a certain pricepoint.

You're probably correct. I would save so much money $ over the 20 years with Solar and let them worry about the maintenance etc....thanks