SunPower Early Buyout Offer

[DavidWisAZ]

Apologies for originally posting this in a thread ( https://www.solarpaneltalk.com/forum...ly-buyout-time ) that I think is too narrow for some responses. Reposting here.

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?

SYSTEM
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) 8.7.3

[Ampster]

What is the annual production of the system? Based on an 11.7 kW system.it should be generating between 14,000 and 17,000 kWh per year.
A buyout of $34,000 would be a cost of about $3 a Watt for a 7 year old system. Do you know what rate they are charging you for the energy produced each month?

[DavidWisAZ]

Thank you for the reply!

According to SunPower, the energy produced is:

2021 (to date): 6,273.98 kWh
2020: 20,900.69 kWh
2019: 21,010.28 kWh
2018: 20,975.44 kWh
2017: 20,947.96 kWh
2016: 21,203.31 kWh
2015: 20,901.47 kWh
2014 (partial year): 1,629.29 kWh
The system's Maximum Rated Capacity is 11.77 kW-DC

I'm not entirely clear about your question of what rate they are charging. The lease payment is $141.39 per month. In the lease agreement, there is a page for "Guaranteed System Production" and the rate per kWh for every year is $0.08.

I am on Net usage billing with SRP in Phoenix and depending on the time of year, pay 7.82 cents per kWh to 12.7 cents per kWh.
8.7.3

[Ampster]

.... the rate per kWh for every year is $0.08.

I am on Net usage billing with SRP in Phoenix and depending on the time of year, pay 7.82 cents per kWh to 12.7 cents per kWh.
...

Thanks for the data. You are getting a lot of production from that system. But then, that is no surprise given your location. You answered my question about the rate. It is $0.08 per kWh.
i don't see a benefit to buying out the system assuming they remove it at the end of the contract in 13 years.

[DavidWisAZ]

i don't see a benefit to buying out the system assuming they remove it at the end of the contract in 13 years.

Thanks - this was my first thought as well as far as buying it out at what they offered.

Do you know if they ever negotiate the EBO?

As far as the end of the lease, I would have them remove it and per the lease, they would remove it within 10 days or convey it to me. I figure if they remove it, I will probably gain by installing whatever the 2034 panels & systems are!

[Ampster]

Thanks - this was my first thought as well as far as buying it out at what they offered.

Do you know if they ever negotiate the EBO?

As far as the end of the lease, I would have them remove it and per the lease, they would remove it within 10 days or convey it to me. I figure if they remove it, I will probably gain by installing whatever the 2034 panels & systems are!

I have no idea if they will negotiate. I have not looked at Sunpower's financials to even know if the leases are on the balance sheet or if they packaged them into investment pools like Solar City was doing. I had heard some anectdotal cases with SolarCity leases that there was some negotiating room but that was because Tesla wanted to get rid of them and the recourse leverage in the pools. The investors got the tax credits on those deals and the unique circumstances made cash buyouts attractive. I don't know if Sunpower is still in that business of leasing so the response may be entirely different. It is always worth a try, otherwise you are negotiating with yourself. Good luck with what ever happens.

[khanh dam]

many solar companies will be out of business in 25 years, therefore no one will be there to take off the panels. and they are worth pennies on the dollar, not any financial bernefit to take it off.