Seeking feedback for my newly amended 20-yr SolarCity 'prepay' SolarLease in Plano TX

[Naptown]

Kelly
In most cases a purchase is better than a lease long term. Provided you have the cash to lay out and wait for the return of the incentives etc.
Next best case would be low interest PACE financing where you basically finance the system on your property taxes. The down side of this is Fannie Mae and Freddie Mac will not allow this to happen at least not yet.
Next would be a prepaid lease One payment and it is essentially yours for 20 years.
Now if you don't have the cash to lay out a $0 down monthly payment lease may be appropriate. If it offers a purchase option all the better.

[San Diego]

Congratulations!! I am just starting to look at solar. I have not had any quotes yet

I am in the first steps of looking at solar on my house.

I have a solar company coming on this Wed. to give me a quote.

Why did you not purchase instead of lease?

Any feedback would be help,


Kelly from San Diego

[MIB]

UPDATE: Utility company inspection completed this morning, system is now up and running!

[MIB]

UPDATE: System installed! Waiting on utility company inspection...

[jschaff]

Can you contact me about this company. I also live in Plano and am looking at installation of solar.

Thanks
jschaff1954atgmail.com Mod note - never a good idea to place your full email out in the open - spambots jump on such opportunities

Hello, I signed a 20-year 'prepay' SolarLease with SolarCity on August 31, 2012, and I just signed an amendment with them today, October 10, 2012. The main points are below, with the significant amendment changes in bold, and additional information follows. Thanks in advance for your helpful opinions and expertise! -Michael

1) SolarCity will own the system and any associated credits, rebates, etc.

2) System: 7.920 kW DC (STC) photovoltaic (6.91 kW AC) with 1 inverter and approximately 33 panels flush mounted on one south-facing roof, 40-degree pitch, in Plano, TX

3) I must pay $11,362.20 total in about 2½ months or so. (Half is due upon installation, and half is due upon inspection.) I will have no other payments to SolarCity for the next 20 years.

4) SolarCity guarantees solar production throughout the 20-year term. 10,213 kWh is guaranteed in year 1, and this level gets reduced by 0.5% annually, all the way down to 9,285 kWh in year 20.

5) SolarCity will annually pay me for any cumulative shortfall, at a rate of $0.0554 per kWh.

6) If the system overproduces, I benefit from the 'free' energy.

7) TXU will credit any surplus solar generation beyond what I use. (Current rate is $0.075 per kWh.)

8) For the 20-year duration, I must provide a continuous high-speed Internet connection.

9) For the 20-year duration, I should hose the panels off as needed. (Bird crap mostly, I suppose.)

10) After the 20-year term I can renew, upgrade, or get 'free' removal.

11) SolarCity is full service and will take care of every step of the installation process.

12) SolarCity uses only the highest quality solar panels, equipment and hardware.

13) SolarCity uses panels that are sleek and attractive and feature a low profile aesthetic.

14) SolarGuard monitoring service is included.

15) PowerGuide energy consumption service is included.

16) Extended Warranty & Repair Service on system and roof is included.

17) Insurance Coverage is included.

18) I can get $400 for any friend referrals. Put down 'Michael Barth', and I'll split it with you!

19) And for the August promotion, I get a 16GB "New iPad" approximately 2 months after installation.


Here is some additional info pulled from the Q&A in my prior thread:

A) My lease states: "SolarCity agrees to ...create a priority stream of operation and maintenance payments to provide enough cash flow in our financing transactions to pay for the Limited Warranty obligations and the repair and maintenance of the System in accordance with this Lease even if SolarCity ceases to operate."

B) A SolarCity energy consultant emailed me: "The equipment would not be used as any kind of collateral on a loan."

C) I expect that the inverter will need to be replaced, at SolarCity’s expense, at some point during the 20-year term.

D) SolarCity's BBB rating is currently 'A', with 25 complaints in the last 3 years, of which only 4 were not resolved to customer's satisfaction. Considering SolarCity's size, this seems pretty good to me!


Also, here is some additional info from the October 10, 2012 system design specs:

• Modules: (33) TRINA SOLAR # TSM-240PA05
• Mounting System: SC BIGFOOT – 1 LAG – DOWNSLOPE
• Inverter: (1) SMA # SUNNY BOY 7000–US

[MIB]

UPDATE: Just got HOA approval!

[russ]

Well, I think it would be nice for any venture capitalists that supported SolarCity to get their investments back; however, if they don't, my hope is that customers like me will still make out OK!

Not to worry about the venture capitalists - they are the first to get their money out safely - if anyone is OK it is them. They are writing the rules.

[Naptown]

The following description provided by SolarCity causes me to feel comfortable about the quality:

The SolarCity L Foot with Eco Fasten GreenFasten flashing optimizes strength, performance and aesthetics while structurally attaching solar panels to composition shingle roofs. This engineered connection uses Eco Fasten's patented, IAPMO certified "green fasten" technology to achieve a watertight seal. 6000 series aluminum offers superb structural and fatigue strength, which in conjunction with anodization offers excellent corrosion resistance even in coastal environments.

• IAPMO ES certified product for waterproofing - Tested in accordance with ICC standards
• Tested in accordance with UL 441 - Waterproofing for rooftop penetrations
• Anodized for long term corrosion resistance and best aesthetics
• No shingle cutting required
• Fast and error proof installation reduces overall impact on roof
• Rail is attached using Stainless Steel Fasteners

Well, I think it would be nice for any venture capitalists that supported SolarCity to get their investments back; however, if they don't, my hope is that customers like me will still make out OK!


Thanks again for your comments!

A couple of things
The L foot is proprietary to EcoFasten and not Solar City. ( It is a good system however)
Glad you are happy. In the end that is what counts.
It will be interesting what happens with SS over the next months. If the IRS concludes they were milking the system it could be over. They are contemplating an IPO. Who in their right mind would invest in a company that is being scrutinized by the Treasury and IRS when their reason is to raise money to cover potential costs due to the overstatement of value on the 1603's is beyond my comprehension.

[jbcapecod]

We just had Solar City install a 7.68 kw system on 3 different roofs of our house this week and I'm very impressed with the quality of the product and installation. Even our local electrical inspector was impressed and said that he thought the inverter installation in the basement was much better than the other installations he's seen (and yes, the plywood was not painted).
Up until this point, i have no complaints whatsoever about Solar City. Now we're just waiting for the AOK from our local utility to flip the switch.

[MIB]

Their rail and mounting system (including the flashing) are much smaller and do not appear to be of great quality.

The following description provided by SolarCity causes me to feel comfortable about the quality:

The SolarCity L Foot with Eco Fasten GreenFasten flashing optimizes strength, performance and aesthetics while structurally attaching solar panels to composition shingle roofs. This engineered connection uses Eco Fasten's patented, IAPMO certified "green fasten" technology to achieve a watertight seal. 6000 series aluminum offers superb structural and fatigue strength, which in conjunction with anodization offers excellent corrosion resistance even in coastal environments.

• IAPMO ES certified product for waterproofing - Tested in accordance with ICC standards
• Tested in accordance with UL 441 - Waterproofing for rooftop penetrations
• Anodized for long term corrosion resistance and best aesthetics
• No shingle cutting required
• Fast and error proof installation reduces overall impact on roof
• Rail is attached using Stainless Steel Fasteners

Hope the VC’s can get there investment back?

Well, I think it would be nice for any venture capitalists that supported SolarCity to get their investments back; however, if they don't, my hope is that customers like me will still make out OK!


Thanks again for your comments!

[bobfromnj]

Good luck with that !

After looking at some of their installations from beginning to end it’s a wonder the panels are still on the roof.
SolarCity is in the middle of doing 10 homes within my community, having been a master electrician and in the building industry for all my life these are some of the observations I have seen in the last 2 weeks.

1.Their rail and mounting system (including the flashing) are much smaller and do not appear to be of great quality. (wish I knew how to post pictures)

2.Almost all solar installing companies (including the one I used and 45 other homes) installed plywood in the garage to mount all the equipment, but painted the board. SolarCity does not paint their boards. Yes, this is strictly cosmetic, but it shows that a company takes a few extra steps to make a job look professional.

3.On at lease 3 of their installations when they came across a pipe in the roof they put the panels around the pipe instead of moving it. It was a simple 3 inch PVC vent pipe. So you have 3 rows of 10 panels, but there is a pipe in the way. So you set up the rows so that there is a space between row 2 and 3. Doesn’t make sense and looks like crap. All other companies move whatever pipes are in the way to again make the job look professional.

4.Our installer had a licensed plumber and a licensed electrician within their company, no need to call sub-contractors.

5.The best part of this is that 3 of the homes do not even face the right direction and are NOT a candidate for solar. The way the panels are facing the panels would not get the sun till about 3 in the afternoon. Not enough time to generate anything! High pressure sales more than likely convinced these “seniors” to go ahead with the job.

Hope the VC’s can get there investment back? Good luck.

[russ]

From a bankrupt company the relief would most likely be nil. Some panel companies have an insurance policy that covers you in the event of their failure - doesn't seem that Solar City has taken that route - it would cost them money.

[MIB]

Will SolarCity be here when you need them ??????

Well, it certainly is a concern, but to repeat an above item...

A) My lease states: "SolarCity agrees to ...create a priority stream of operation and maintenance payments to provide enough cash flow in our financing transactions to pay for the Limited Warranty obligations and the repair and maintenance of the System in accordance with this Lease even if SolarCity ceases to operate."

This clause makes the risk of company failure palatable for me. Thanks much for your comments!

[russ]

A sucker game? Too many companies have no other real product except to act as a vehicle for an IPO so the backers can cash out.

[bobfromnj]

Will SolarCity be here when you need them ??????

D) SolarCity's BBB rating is currently 'A', with 25 complaints in the last 3 years, of which only 4 were not resolved to customer's satisfaction. Considering SolarCity's size, this seems pretty good to me!

Sounds great, but read this...

Sounds like SolarCity is not a very financially stable company. This was on the Internet as reported by the NY Times on Monday.
Solar panel installer SolarCity Corp filed with U.S. regulators to raise up to $201 million in an initial public offering. (IPO)
The company's total revenue was $46.6 million in the three months ended June 30, compared with $13 million a year earlier. It said it had an accumulated deficit of $70.3 million as of June 30
In addition, SolarCity said it was notified this month that the Internal Revenue Service is conducting audits of two of its investment funds, including a review of the solar installations that applied for a popular government cash grant program.
"If ... the Internal Revenue Service determines that the valuations were incorrect and that our investment funds received U.S. Treasury grants in excess of the amounts to which they were entitled, we could be subject to tax liabilities, including interest and penalties, and we could be required to make indemnity payments to the fund investors," the company said in the SEC filing
The company is losing money: In 2011, the company had net losses of $73.7 million, up from $47 million in 2010