Feedback requested on this solar lease proposal in AZ

[AZgreen]

Hi all,

I know many are not in favor of leases here but for my situation it makes the most sense right now (I've explored purchasing).

Location: Gilbert, AZ
Reputable local installer, SunPower authorized dealer

System details:
Size: 9.16kw DC
Panels: SunPower SPR-327NE-WHT-D SunPower (28)
Inverter: Fronius 7.5
Racking: Solar Mount
SunPower Production Monitoring Kit
1st year 100% production: 15,889 kwh

Lease terms:
20 years fixed rate
Monthly payment: $112
Rate per kwh: .09
Total monthly payments: $26,880

Question:
The lease docs give a "Guaranteed Annual Production Range" not a specific number as every other quote I've received has given. Is this pretty standard? FWIW the range is 95%-105% production based on system specs.

Have gotten several local quotes and this one is the best, with the best quality materials. Feedback appreciated!

[Ian S]

Sunpower leases give an annual production range which IIRC is not a bad deal. My understanding is your actual production has to drop under the lowest end of the range for you to be entitled to any payout but for any offset against that payout to arise, your production would have to exceed the highest end of the range. In reality, there would have to be a serious screwup or failure for you ever to see a payout. Just for comparison, my first year production (6.9 kW Sunpower system) was about 12,400 kWh while my first year guaranteed range was 11,768 - 13,006 kWh. I don't know much about Fronius but I seem to recall folks mentioning early failures in some units- maybe search around in these forums for more info.

I would also say that you're committing to a 20 year lease; if you sell your house before that, make sure you understand what may be involved in getting the new owner to take over the lease or the cost of an early buyout. Keep meticulous records to be able to demonstrate to a prospective buyer the saving with solar. Also be aware that as of now, Arizona plans to tax leased systems via a property tax that would start at some hundreds of $$/year on a declining basis. While the tax would be levied on the lessor, it would almost certainly be passed through to the lessee. The solar companies are fighting this but it is uncertain whether they can prevail.

[russ]

I would also say that you're committing to a 20 year lease; if you sell your house before that, make sure you understand what may be involved in getting the new owner to take over the lease or the cost of an early buyout. Excellent advice

Keep meticulous records to be able to demonstrate to a prospective buyer the saving with solar.The better the documentation the more likely the prospective buyer will accept it as real.

A person should take advantage of the best situation that comes up - if that is leasing in your situation then nothing wrong with it.

Ian's points all are 100% on - pay attention to them.

[AZgreen]

Thanks for the clarification on production range Ian. I agree with all the points brought up so far, I understand and accept the risk with future homebuyers. This is also why I'm going with a fixed rate lease with the best (or at least not conventional) materials.

[jds]

AZGreen- I am gathering quotes now. Your numbers look better than what I'm seeing for Sunpower. Will you share who you went with and what your experience was? Thx.