FAQs—Realtor Facing From Solar City

NJ 13VH06160600, NY WC-24624-H11,

OR CCB 180498, PA 077343, TX TDLR 27006, WA SOLARC*919O1. © SolarCity Corporation. All rights reserved.

 

My home seller has a SolarLease or SolarPPA, what should I do?

Make sure your home seller lets us know immediately so we can review their contract terms with them and help them understand their options. Call 888.SOL.CITY (888.765.2489), or email us at customercare@solarcity.com.

 

What is the process for transferring a SolarLease or PPA?

• Your home seller should contact us immediately so that we can review options under the contract. We are also happy to work with a new home buyer and associated real estate agents.

 

• SolarCity will request approval from our current customer, the home seller, to disclose information to new potential home buyers.

 

• The home seller should determine the best transfer option available under the lease: prepay, transfer payments, or system relocation. Please note that in order to avoid restricting the pool of potential home buyers; the best option may be to prepay all remaining payments, especially as many homes with solar sell for a premium over comparable homes on the market. SolarCity can work with the home seller to assess their options.

 

• In the event that outstanding payments are not prepaid, the transfer of remaining payments to a new home buyer requires that the home buyer have a minimum 700 FICO credit score. SolarCity will send a request to the home buyer to authorize us to view their credit.

 

• SolarCity will always require a transfer agreement signed by the home seller and home buyer a minimum of 10 days before the close of escrow in order to remove the fixture filing. SolarCity will generate the transfer agreement.

 

• Once SolarCity receives the signed agreement by both parties, SolarCity will release the fixture filing.

 

 

What is a transfer agreement?

A lease or PPA transfer agreement transfers the lease obligations from the home seller to the home buyer. It does not change any terms in the original lease or PPA, it just reassigns the rights, obligations and warranties to the new home buyer. Monthly payments remain the same and the original lease holder is responsible for any delinquent balances up until the time of transfer. SolarCity’s performance guarantee and obligations to maintain the performance of the system remain unchanged. As part of the lease, to benefit from SolarCity’s proprietary monitoring system and performance guarantee, a lessee must maintain a high speed internet connection.

 

 

What is a fixture filing?

SolarCity places a fixture filing—or public notice—that SolarCity owns the solar system attached to the property.

This recorded notice does not constitute a title defect, lien or encumbrance against the real property, but rather registers SolarCity’s interest in the solar equipment on the property. SolarCity incurs a substantial cost to install leased solar systems and recoups that cost gradually via lease payments, so the fixture filing protects our interest in the solar system.

 

What happens if a home buyer does not pass credit?

A potential home buyer who does not meet the credit requirements for monthly payments may still qualify by:

1. Adding a Co-Lessee to the transfer agreement who meets the credit.

2. Having at least 25% equity in the property if they have a 680-699 FICO score.

Our recommendation is that the home seller prepays their agreement, especially as most homes with solar sell for a premium over comparable homes without solar.1

 

What if the potential home buyer requests for the solar system to be removed?

Share the provided SolarCity flyer which outlines the utility savings one can see by producing your own solar power. Encourage the home seller to call SolarCity to review the contract terms.

The contractual obligations of the lease or PPA remain with the home seller until a transfer agreement is executed by both the home seller and home buyer. Early removal of the system and termination of the lease is considered a default. Under the terms of the PPA or lease, the home seller would be required to reimburse SolarCity for expenses to remove the system, as well as any unpaid monthly payments, taxes, late charges, penalties, or interest

 

Information from SunPower

 

We are excited to have you as a lease customer, and want to take a moment to highlight 

some of the obligations in our contract between SunPower as lessor and you as the lessee.

LESSEE (HOMEOWNER) OBLIGATIONS

· Make timely lease payments to SunPower.

· Keep the solar panels clear of obstructions and shade.

· Do not make adjustments, modifications or unauthorized service to any part of the system.

· Provide SunPower and your Partner reasonable access to your system in the event of a 

 service request.

· Notify SunPower within 24 hours if you discover your system is not working properly.

· Notify SunPower within 24 hours of any loss or damage to your system.

· Notify SunPower 30 days prior to the sale of your home.

· Maintain your high-speed internet connection and the SunPower Monitoring System

 connection, which may include a power-line Ethernet adapter that must remain connected 

 directly to an AC wall outlet. Do not plug into a power strip.

 For a full list of your obligations, refer to your Lease contract.

ADDITIONAL REQUIREMENTS FOR THE PERFORMANCE GUARANTEE

· System must be transmitting data to SunPower Monitoring Website.

· Maintain all the obligations of the lease agreement.

· No shadows from buildings, plants, trees, or any objects that could shade the panels.

 California has a solar access law in place to help protect homeowners with solar systems 

 (i.e., the Solar Shade Control Act of 1979).

LESSOR (SUNPOWER) OBLIGATIONS

· Service all system components in accordance with warranty.

· Maintain insurance on the System.

· Monitor all systems connected to SunPower Monitoring.

· Provide Production Guarantee for all eligible systems.

· Upon request from lease holder at the end of lease, remove equipment from property.

 

END OF THE LEASE TERM & EARLY BUY-OUT

After the final month of your lease, SunPower and your obligations come to an end. The 

solar system remains the property of SunPower. You have three options at the end of the

20-year term:

 1. Purchase the system based on Fair Market Value (FMV) as determined by

 a 3rd party appraisal;

 2. Extend the term of the lease; or

 3. Request removal of the system, at no cost to you.

BUYING THE SYSTEM BEFORE THE END OF THE 20-YEAR LEASE TERM

There are three occasions under which you can to purchase your leased system;

 1. The one-time early buyout, at year 7 (the “Early Buy-Out”);

 2. Upon sale of the home; or

 3. At the end of the 20-year lease term.

HOW DOES THE “EARLY BUY-OUT” OPTION (EBO) WORK? 

SunPower will provide you with notice 120 days before the date of the EBO; you must 

respond in writing no later than 60 days before the date of the EBO if you wish to exercise 

this option. The EBO date is 6 years and 6 months from the lease date; for example, if the 

lease date is 11/30/2011 then the EBO date is 5/30/2018.

REFINANCING YOUR HOME WITH A LEASED SOLAR SYSTEM ON THE ROOF

The SunPower lease does not prohibit the refinance of your home. Before refinancing, you 

should notify your lender that you have a leased system on your property.

REMODELING OR UPDATING YOUR ROOF DURING THE TERM OF THE LEASE

You must provide at least 15 days prior notice to SunPower of intent to repair or improve 

the premises, in order for us to remove or protect and secure the system prior to the repairs 

or improvements, and reinstall the system after the repairs or improvements are complete.

The costs associated with removal and reinstallation will be at your expense.

For more information on any of these items, reference your lease agreement

 

SELLING YOUR HOME

If you sell your home prior to the conclusion of the 20-year term of the lease, you have one 

of two options:

 1. You can exercise the contingent buy-out option for the remaining value of the system 

 (see Exhibit B of your lease agreement for the remaining value amount), and include the 

 system in the sale of your home; 

 Or

 2. The lease can be assigned/ transferred as-is to the new homeowner. 

 [See “Lease Disclosures”, item #4, “What happens if I sell my home?”]

If you take no action upon selling your home, you will remain responsible for the monthly 

payments on the solar system, even if the new owner receives the benefits of your system. 

Lease payments are due regardless of who benefits from the electricity generated by the 

system.

DOCUMENTATION REQUIRED TO SELL YOUR PROPERTY

Please contact our customer service team (1-800-SUNPOWER) to notify us of the

upcoming home sale at least 30 days prior to the sale, if you sell your home during the 

term of the lease. The “Lease assignment” or “system purchase” documents will be provided 

to you based on the transaction type.

 

More FAQ's coming soon