Cancelling a Leased Solar Panel System

[The Critic]

I am currently in contract to purchase a home which has SolarCity/Tesla panels installed (see photo below). The home has two systems installed: 1) a 7.8 kw system which is owned, 2) a 3.87 kw system which is leased.

The 3.87kw system was installed in 2011 and the current lease rate is $150/mo. Obviously the economics of the lease do not make sense ($34K+ for a panel that costs $10K new today) and the owned 7.8 kw system is likely to be more than sufficient for my needs.

Does anyone have experience with breaking a lease with SolarCity or any other solar provider? I reviewed the lease terms and contract and there does not appear to be a cancellation clause.

Note: I was fully aware of this "issue" before entering the contract. This was not a dealbreaker for me.

Thanks.

 

[tahoe_hybrid]

who the [censored] leases a system in the first place tell them your worried about it catching fire like the ones at walmart and you want them off the roof

 

[The Critic]

Originally Posted by tahoe_hybrid
who the [censored] leases a system in the first place

Right?

The rest of the house made enough sense so this was one "issue" that I was willing to deal with.

 

[tahoe_hybrid]

it says 0.40 cent KWH and 150 a month lol.. grade a stupid
might be fine if you lived in the middle of nowhere to run dehumidifers as drinking water

 

[The Critic]

Originally Posted by tahoe_hybrid
it says 0.40 cent KWH and 150 a month lol.. grade a stupid
might be fine if you lived in the middle of nowhere to run dehumidifers as drinking water

Take a look at the Peak Rate out here...

 

[FirstNissan]

I would call the company and ask them politely that you are the new owner and would like to get rid of the system. Most likely they will tell you to go pound sand. Then you spend a few hundred bucks, hire a lawyer to send a letter saying that you never signed a contract for the system. If they don't respond to that, then you file legal paperwork. Even if the out-of-pocket legal cost is two or 3000, that's still cheaper than dealing with this lease for the next whatever few years

 

[Wolf359]

Some quick googling says that the lease is tied to the title of the home. To buy it out, you have to pay the remainder of the payments. Easier to just keep it. But it's simple, you just negotiate the price of the buyout into the purchase price.

 

[Snagglefoot]

Two things. Don't torture yourself saying it's a $34,000 system. The other guy already made the first 8 years of payments. You need to add up only the next 12 years of payments.

Secondly, we need to understand how your bill would change if you delete the system. Would it be fair to say it makes 3 kw for 5 hours per day for a total of 15 kwhrs. How much of that would be peak?

 

[Snagglefoot]

Judging from your photo, only one small section gets direct southern exposure. Can you tell how many kwhrs your rental panels produced in one month?

 

[demarpaint]

Wow. I think you're stuck with the system. As others stated if you negotiated it out of the asking price of the house live with it, but I'd still try to get out of it. I'm not sure if I'd be thrilled with a patched up roof on a nice house like that when the system gets removed. If that's how they do it in CA.

Pigs would fly before I ever put a $34K solar system on my house. Maybe that's how us old timers think though. LOL

 

[The Critic]

Originally Posted by Snagglefoot


Secondly, we need to understand how your bill would change if you delete the system. Would it be fair to say it makes 3 kw for 5 hours per day for a total of 15 kwhrs. How much of that would be peak?

It should not - at least not with my projected usage. Even if I removed this leased system, I still have a working 7.8kw system.

 

[Snagglefoot]

It seems you are being credited for only half the power you produced. What are the details on that?

 

[Snagglefoot]

I'd gladly look at this more tomorrow, but let me say this. You are a bit underwater right now but as power costs climb ( and they will) things will get better. Yes, I see your monthly payments move as well, but the power cost will increase faster.

Consider this. The impressive numbers of panels will add to the value of the house even though the economics are not working right now.

 

[Ws6]

Originally Posted by Snagglefoot
It seems you are being credited for only half the power you produced. What are the details on that?


They dont credit you retail. 50% is actually amazing. I only get 20% of my overage in credit.

 

[Olas]

If you didn't sign a contract, you don't have a contract with them.
Simply ring them up and tell them to come and collect their equipment or you'll be removing it from your house and throwing it in the dump.
The previous owner agreed the terms, so the previous owner has to honour the commitment - as I said earlier you have not entered into contact with them, so you are not obliged to pay them anything. Instruct your bank not to honour any payments to them, and instruct them to remove their property from your property. Charge them storage fees for leaving heir junk on your roof, and tell them it'll be going to landfill in 7 days if they don't collect before the 7 days is up.

 

[RayCJ]

The laws on this are different in every State. If you have an attorney to handle your real-estate closing, now would be a good time to hit e'm up for some advice.


Ray

 

[Fawteen]

Your best bet is to contact the company and see what they say, and then to also contact a local real estate attorney who sees this sort of thing on a regular basis. The regulations vary so much and are so twisted in a place like California that any information you might get here is marginal at best.

Originally Posted by Olas
If you didn't sign a contract, you don't have a contract with them.


That's not true, especially when there is a lien on the property.

 

[BMWTurboDzl]

Originally Posted by Wolf359
Some quick googling says that the lease is tied to the title of the home. To buy it out, you have to pay the remainder of the payments. Easier to just keep it. But it's simple, you just negotiate the price of the buyout into the purchase price.


It's really not tied to the house. There's a UCC lien against the equipment. The new homeowner isn't required to assume the payments on the lease. Typically leased panels are part of a PPA where the monthly credit for excess generation is paid to the owner of the panels (i.e. Solar city).


OP, Give Solar City a ring and see what the deal is.

 

[incognito_2u]

Originally Posted by RayCJ

The laws on this are different in every State. If you have an attorney to handle your real-estate closing, now would be a good time to hit e'm up for some advice.


Ray


^^This^^

 

[alarmguy]

You do not have a lease, you have two options keep the equipment or extend them the courtesy of removing it.
You owe them no payments and you do not have to let them onto your property if you choose not too.

Chances are they will not want the equipment back, it would be to costly as the system, installed in 2011 already has used up to half of its 15/20/25 year life. Depending on the panel, as of right now your panels are now producing up to 10 percent less electricity then they did new and the decline accelerates from here..

Of course with any purchase, ask your attorney.