I have been receiving many inquiries from homeowners about solar panels, and the different types of solar electricity agreements being offered. It can definitely be confusing!
Several different types of agreements, each with varying terms, are being offered in our market. The basic “types” are as follows:
1. Outright Purchase. This can be paid with cash or financed. This arrangement typically allows the homeowner to claim any available tax credits, rebates, and incentives at the time of purchase. In this case, the homeowner is responsible for the care and maintenance of the system (and may or may not have a warranty or service agreement in place)
2. Solar Lease. A third party owns the equipment, and the homeowner leases it (usually for a fixed monthly payment). The homeowner receives the benefit of the electricity generated by the system, and the third party (system owner) is responsible for the maintenance.
3. Power Purchase Agreement. A third party owns and maintains the equipment and sells the generated electricity to the homeowner at a predetermined cost (typically with a set annual increase).
It is important to understand the terms of any agreement before signing a contract. Read the agreement yourself before signing and get a second opinion too. (I’ve seen a few with some real ‘zingers’ incorporated into the fine print.) The terms of each agreement can vary widely. If you are considering solar electricity, take your time, comparison shop, and obtain qualified advice to help you decide what best fits your financial situation, energy goals, and long-term plans.
Laura Harbison, ABR, AHWD, BPOR, BS, CDPE, CRS, DRB, GRI, PSA, RSPS, SRES
Broker/Owner REALTY EXECUTIVES SOUTHERN NEVADA PROPERTIES
License NumbersB.0026537LLCPM.0164922.BKR
