My, how time flies. I just received a letter from SunPower leasing informing me that the date of my E.B.O. is April 7, 2018. I have to give them 60 days written notice if I want to take advantage of the offer so that means sometime in the next month or so. Decisions, decisions. Originally, I though I'd just do the buyout but it's more complicated now by our plans for the next couple of years.
A little background for the unfamiliar. I started looking into solar in 2011 and got my first quotes in July of that year. At that time, outright purchase or monthly leasing was the typical way forward but there was also a "prepaid lease" option that really intrigued me as it seemed to offer most of the benefits of outright purchase along with what amounted to a 20 year warranty on everything. Furthermore, because of the way the leasing companies operated, they received tax benefits that an individual was not entitled to. Consequently, pricing of a prepaid lease could at times look too good to be true. After getting quotes from SolarCity, Sungevity, and Sunrun, a friend who already installed solar suggested I contact her installer, Perfect Power. I did and got what appeared to be a reasonable quote for their in-house prepaid lease. But as I was mulling things over, the Perfect Power rep contacted me with a brand new offer from SunPower for their prepaid lease and it really took my breath away: one upfront payment of $6,728.89 for a 6.9 kW Sunpower system installed. That was far better than any other quote I had got. SunPower would receive all the rebates and tax benefits but it was still a great price for what at the time was a $30K system.
In poring over the lease documentation, one of the things put in writing was a table of buyout values for every year of the lease so that the lessee would know the cost to buy out the lease if they were to sell the home before the lease was up. Fair enough but also included was a one-time option to buy out the lease even if you weren't selling the house. That date was exactly 6.5 years from the date of the lease signing which in my case was October 7, 2011. Buyout cost: $843.73. A no brainer right? Except a wrinkle is that we now plan to sell our home in 2019 and move out of the Phoenix area. In 2019 when we sell, the buyout would only be a few hundred $$ more and that would provide the buyer with the option to just continue with the existing lease - no cost to them - or do the buyout and have them own the system outright. Some buyers may like the idea of the full coverage afforded by the lease over the remainder of the 20 year period, others may prefer to own outright.
SunPower also mentions that the buyout option does not include and sales taxes or other fees or charges imposed on me or SunPower. I'd have to pay them. Also I've always wondered if there would be any income tax consequences to the transaction. I'd be really interested if anyone knows of a SunPower lessee who has gone through the process and if there were any surprises.
Thoughts?
A little background for the unfamiliar. I started looking into solar in 2011 and got my first quotes in July of that year. At that time, outright purchase or monthly leasing was the typical way forward but there was also a "prepaid lease" option that really intrigued me as it seemed to offer most of the benefits of outright purchase along with what amounted to a 20 year warranty on everything. Furthermore, because of the way the leasing companies operated, they received tax benefits that an individual was not entitled to. Consequently, pricing of a prepaid lease could at times look too good to be true. After getting quotes from SolarCity, Sungevity, and Sunrun, a friend who already installed solar suggested I contact her installer, Perfect Power. I did and got what appeared to be a reasonable quote for their in-house prepaid lease. But as I was mulling things over, the Perfect Power rep contacted me with a brand new offer from SunPower for their prepaid lease and it really took my breath away: one upfront payment of $6,728.89 for a 6.9 kW Sunpower system installed. That was far better than any other quote I had got. SunPower would receive all the rebates and tax benefits but it was still a great price for what at the time was a $30K system.
In poring over the lease documentation, one of the things put in writing was a table of buyout values for every year of the lease so that the lessee would know the cost to buy out the lease if they were to sell the home before the lease was up. Fair enough but also included was a one-time option to buy out the lease even if you weren't selling the house. That date was exactly 6.5 years from the date of the lease signing which in my case was October 7, 2011. Buyout cost: $843.73. A no brainer right? Except a wrinkle is that we now plan to sell our home in 2019 and move out of the Phoenix area. In 2019 when we sell, the buyout would only be a few hundred $$ more and that would provide the buyer with the option to just continue with the existing lease - no cost to them - or do the buyout and have them own the system outright. Some buyers may like the idea of the full coverage afforded by the lease over the remainder of the 20 year period, others may prefer to own outright.
SunPower also mentions that the buyout option does not include and sales taxes or other fees or charges imposed on me or SunPower. I'd have to pay them. Also I've always wondered if there would be any income tax consequences to the transaction. I'd be really interested if anyone knows of a SunPower lessee who has gone through the process and if there were any surprises.
Thoughts?
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