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New Community: Pre-Pay & Purchase Options

David - PLR Product Ops avatar
Written by David - PLR Product Ops
Updated over a week ago

There are a few key differences between GAF and Palmetto LightReach contracts when it comes to pre-payment, purchase, or transfer of the contract to a new customer.

Option

Details

A

Pre-payment

GAF Contracts:

  • no prepayment option available

PLR Contracts:

  • Homeowners who wish to pre-pay will benefit from a 5% discount vs paying over the 25 year term, while maintaining all of the benefits of the Energy Plan.

  • Option after PTO - customer would need to be current on their monthly payments.

B

Purchase

For GAF contracts:

  • GAF allows the consumer to purchase the system at any time during the lease agreement

Palmetto LightReach Contracts:

  • LightReach allows the consumer to request to purchase the system only after the system has been installed for at least 5 years.

  • Ideal for homeowners who want to maximize potential long term savings

Details:

  • Fair market value assessed at time of purchase

  • Homeowner voids benefits of PPA/Lease contract

C

Transfer

Both Contracts have the following transfer options:

  • If you sell the Home during the Lease Term

  • At the end of the 25 year term.

GAF Contracts:

  • GAF requires at least 30 days notice

  • GAF allows the consumer to transfer the lease agreement to any party that is purchasing the relevant home.

Palmetto LightReach Contracts:

  • PLR requires at least 15 days notice

  • New homeowner qualifies for Energy Plan financing, and signs transfer agreement to take over the Energy Plan

  • If new homeowner does not qualify, the contract holder may purchase or pre-payment of the PPA.

A

Better to buy or pre-pay?

There is no simple answer when determining the best option. Homeowners who wish to explore purchasing or pre-paying may see higher value in a particular option based on their personal circumstance.

For example:

  • Homeowners who purchase the system may benefit from a lower overall price tag, and could potentially (market dependent) benefit from some level of state or local incentive. However, purchasing the system voids Energy Plan-specific benefits, such as labor/parts coverage, etc.

  • Homeowners who wish to pre-pay will benefit from a 5% discount vs paying over the 25 year term, while maintaining all of the benefits of the Energy Plan.

B

Where can I view the total price of all Energy Plan pre-payments?

Homeowners can view the total cost of all Energy Plan payments on their Exhibit F (In most states. May vary.).

  • Homeowners wishing to pre-pay will receive a 5% discount on this amount.

  • Amount will be adjusted relative to the timeframe of the pre-pay (IE if pre-paying after several years, cost will factor in payments already made)

C

Purchase Price?

Homeowners opting to purchase the system will be offered a fair market price at the time of purchase. This price will be determined ultimately by a third party appraiser.
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Of course, it's not possible to predict such a price years in advance. However, there are a few high level peace-of-mind things to bear in mind.
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  1. LightReach is in the business of making solar more affordable for homeowners. In that spirit, when we say 'fair' pricing-- we mean it-- systems will not be arbitrarily price hiked for any reason.

  2. Depreciation of the system will be factored

  3. Incentives that have already been monetized will also be factored.

D

UCC-1?

When homeowners are prepping to sell, LightReach can release the UCC-1 upon either their purchase of the solar system, or, transfer the UCC-1 upon transfer of the Energy Plan to the new homeowner

E

What happens at end of term?

Options are laid out in the homeowner's contract:

  1. LightReach will remove the system at no cost

  2. Purchase the system at fair market value (appraised at end of 25 year term)

  3. Extend the contract at a new rate (offered at end of 25 year term)

  4. Renewal Notice Homeowner will need to respond to the renewal notice with their options at the end of the term.

  5. LightReach reserves the option, if homeowner has not opted into option 1/2/3 after 90 days, to transfer ownership of the system to the homeowner as is.

F

What happens if homeowner passes away?

  • If property is passed down, new owner is responsible for contract

  • If property goes to estate, estate is responsible

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