Are you having problems because you urgently subscribed to a solar lease contract without much thought? You don’t feel satisfied with the savings or are thinking of selling your residence with a solar lease? Or, you’re planning to purchase a residence with a leased solar panel system on a rooftop?
Indeed, there are several different reasons why you might prefer to get out of a solar panel contract, like selling your residence, moving to another city, etc. This article will tackle the possible reasons for rescinding a solar lease contract and the potential solutions on how to get out of a solar lease.
Table of Contents
- How to Get Out of a Solar Lease: Everything You Need to Know
How to Get Out of a Solar Lease: Everything You Need to Know
1. When You Decide or Need to Move to Another Location, What Happens with the Solar Lease
When you’re selling your property, depending on the contract agreement when you negotiate a solar lease, you have a few options for meeting the lease obligation prior to the termination of the contract. Such options include the following:
Buy the solar panel system at market price.
Many lease contracts do not precisely indicate an amount of purchase; however, they state that an experienced examiner will designate the fair market value at the period of purchase.
Hence, it’s necessary to look into the entire period your solar system has been in use, as well as the present market options. Please keep in mind that your system is tied down to an asset of generating power, so the amount of purchase might be higher.
Acquisition/Buyout of a solar lease contract
In the case of acquisition/buyout, you may consider prepaying the balance on the outstanding lease and have the solar panels either left at or lifted from the house. Many solar leasing firms generally include a buyout price and period in their contract.
Nevertheless, this might not often be the case. Typically, a buyout is granted after five to seven years of the lease. We strongly suggest that you carefully read your lease agreement for more information.
Transfer a solar panels system from one residence to another
In case you are relocating, some leasing firms offer an alternative to transfer a solar panel system from one residence to another. However, prior to the start of the process, you should ensure that the new rooftop is in excellent working condition to reinforce a rooftop solar system securely.
Plenty of solar leases come with an additional charge for the removal and reinstallation of the system. Fundamentally, you’ll require the confirmation of your homeowners’ association, utility firm, or local government commission, to set up a solar system on a new rooftop.
Transfer of a Solar Lease
Alternatively, you may consider transferring the lease to a new homeowner so that you can get out of Vivint solar contract. For instance, several solar firms employ a service transfer specialist who will assist you throughout the entire procedure of ensuring your lease is passed on to the new homeowner.
Regardless, some buyers might be reluctant to accept this solution. But, the good news is that you can minimize the selling price of the property by the amount of the transfer and wrap up the sale.
On the whole, you might want to look at a buyout first if you have plans of selling your residence soon. If you have the potentiality of a quick buyout, you can settle your lease and possess the solar panel system yourself.
Essentially, solar panels that are entirely owned increase the current monetary worth of your property by roughly ten thousand dollars. This could at times exceed the amount of the buyout.
Meanwhile, if the amount of buyout is considerably less expensive compared to the lease period’s monthly payments, it’s an economically acceptable option to opt for.
2. What About When Dealing with Buyer’s Remorse? Is It Possible to Revoke Your Solar Lease Before the Setup Process
In case you wish to get out of a solar city lease because you have regrets considering one, you might be able to revoke it before the solar panel system installation. The period to revoke leasing without any costs primarily relies on the policy of the solar firm.
Be that as it may, usually, the time frame is 30 days after you subscribe to the solar lease agreement.
If you have subscribed to the solar lease agreement just to uncover later that your roof requires fixing, what happens next? In this case, the solar firm allows the end of the contract under the stipulation of “unforeseen and unanticipated additional costs.”
Substantially, before signing a solar lease, it is essential to consider all the options. Be sure to thoroughly go over the “fine print” so that you can weigh all the options and be well-informed as to whether going solar is right for you.
Hinging on your circumstances, you might find that leasing, purchasing the solar panel system with cash, or a solar loan might be the best alternative for you.
3. Other Reasons for Ending Solar Lease
When you signed a solar lease, but you’re unsatisfied with the savings
You’ve signed a solar lease agreement to save more on your utility costs, but later on, you find yourself unhappy with the savings. One of the possible reasons your solar lease does not match your expected bill savings is probably the fact that it consists of an annual escalator.
Several leases come with an escalator stipulation which could go from 3 up to 5% per year. The issue arises when electricity expenses don’t increase as quickly as lease payments.
Regardless, with agreeable funding and correctly installed equipment, a solar panel system for your home can help you set aside 10 to 30% on your electrical utility monthly.
Dealing with the poor service provided by the solar company
There have been countless consumers who found out later that the solar company’s support and ongoing service do not satisfy their needs. In case you found out that the service from your leasing firm does not satisfy you, it’s understandable why you’ll feel the need to get out of your lease.
Chiefly, it is valuable to openly communicate your dissatisfaction with your service, so long as it is reasonable and legit. You might find that you have understandable grounds for canceling your lease early. We strongly suggest that you keep a record of the issues you’ve encountered with the solar company since you signed the contract.
In doing so, it will be more straightforward for you to demonstrate your reasoning for wanting to cancel the solar lease agreement.
Why is it crucial to seek the assistance of a solar expert?
As mentioned, it is significant to contact a local solar expert who will independently go over all the financial options and equipment available. A local solar expert can also help you figure out what precisely works for your requirements, financial situation, and overall goals.
Be sure to look for a trusted source that can exactly represent your interests. It is also fundamental to educate yourself on several different solar alternatives available on the market before making the final decision.
Many sales out there are misleading and sneaky; whether it’s a lease, a purchase, or other option, selecting the wrong solar firm can be severe stress in the end.
Undeniably, going solar is quite advantageous, but if there comes a time that you’ll consider how to get out of a solar lease, please take note of the following options:
- Transfer a solar agreement to another homeowner
- Buy the solar panels system at market value
- Acquisition or buyout of a solar lease contract
Ultimately, so long as you find the right financing option, equipment and installer, you shouldn’t regret your decision to go solar. The best means to ensure that you are getting an excellent deal before signing a solar lease is to shop around so you’ll be well-informed.