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Pre-Pay & Purchase Options

Andrew C - PLR Product Ops avatar
Written by Andrew C - PLR Product Ops
Updated over 2 weeks ago

LightReach Energy Plans feature options to both pre-pay or purchase. Each option has a few simple parameters associated, giving flexibility and optionality to homeowners.

Option

Details

A

Purchase

Options:

  • Ideal for homeowners who want to maximize potential long term savings

  • Option 1: Customers can inquire about purchasing the system by writing to our customer support team upon the 5th anniversary of the interconnection date or anytime after the 5th anniversary of the interconnection date (IE Year 6) with 60 day notice

  • Option 2: If you sell the Home during the Lease Term

  • Option 3: At the end of the 25 year term

  • Homeowner must deliver a written notice to Palmetto Solar, LLC of the intent to purchase within sixty (60) days of the applicable date and deliver payment to Palmetto Solar, LLC within thirty (30) days of receiving an invoice from Palmetto Solar, LLC for the purchase price. Inquiries can be submitted to [email protected]

Details:

  • The system will be assessed at Fair market value by a third-party appraiser

  • Upon purchasing the system, the homeowner will assume responsibility for any future system repairs/maintenance.

B

Pre-Pay

Option 1: Available anytime after activation

  • Ideal for homeowners who prefer to eliminate monthly payments, but still want to maintain the extended protect coverage for the full term

  • Prepayment of full/total Energy Plan payments (typically outlined on Exhibit F of contract) less 5% discount offered

C

Transfer

Option 1 (Recommended when a homeowner sells their home to a another party):

  • The new homeowner (buyer) must qualify for an Energy Plan, and must sign a transfer agreement to take over the Energy Plan

Option 2

  • If new homeowner (buyer) does not qualify, the contract holder (seller) may purchase the system (to eliminate monthly payments for the buyer) or they can complete a pre-payment of the remaining PPA contract payments

A

Better to buy or pre-pay?

There is no simple answer when determining the best option. Homeowners who wish to explore purchasing or pre-paying may see higher value in a particular option based on their personal circumstance.

For example:

  • Homeowners who purchase the system may benefit from a lower overall price tag, and could potentially (market dependent) benefit from some level of state or local incentive. However, purchasing the system voids Energy Plan-specific benefits, such as labor/parts coverage, etc.

  • Homeowners who wish to pre-pay will benefit from a 5% discount vs paying over the 25 year term, while maintaining all of the benefits of the Energy Plan.

B

Where can I view the total price of all Energy Plan pre-payments?

Homeowners can view the total cost of all Energy Plan payments on their Exhibit F (In most states. May vary.).

  • Homeowners wishing to pre-pay will receive a 5% discount on this amount.

  • Amount will be adjusted relative to the timeframe of the pre-pay (IE if pre-paying after several years, cost will factor in payments already made)

C

Purchase Price?

Homeowners opting to purchase the system will be offered a fair market price at the time of purchase. This price will be determined ultimately by a third party appraiser.
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Of course, it's not possible to predict such a price years in advance. However, there are a few high level peace-of-mind things to bear in mind.
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  1. LightReach is in the business of making solar more affordable for homeowners. In that spirit, when we say 'fair' pricing-- we mean it-- systems will not be arbitrarily price hiked for any reason.

  2. Depreciation of the system will be factored

  3. Incentives that have already been monetized will also be factored.

D

UCC-1?

When homeowners are prepping to sell, LightReach can release the UCC-1 upon either their purchase of the solar system, or, transfer the UCC-1 upon transfer of the Energy Plan to the new homeowner

E

What happens at end of term?

Options are laid out in the homeowner's contract:

  1. LightReach will remove the system at no cost

  2. Purchase the system at fair market value (appraised at end of 25 year term)

  3. Extend the contract at a new rate (offered at end of 25 year term)

  4. Renewal Notice Homeowner will need to respond to the renewal notice with their options at the end of the term.

  5. LightReach reserves the option, if homeowner has not opted into option 1/2/3 after 90 days, to transfer ownership of the system to the homeowner as is.

F

What happens if homeowner passes away?

  • If property is passed down, new owner is responsible for contract

  • If property goes to estate, estate is responsible

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