Basics of Sun Run Lease in LA and Arizona

Posted on 01 May 2011

Sun Run has introduced a solar lease program available in Los Angeles (LADWP) utility and Arizona, though the Sun Run is basically known for Solar PPAs.

Solar Lease

Resedential Solar Lease

This lease is basically a relief for people who usually refrain from the lease because of the high upfront cost of the solar program. The upfront cost for the solar lease is typically $500 but this upfront cost could be less or zip in some utilities of Arizona. This solar lease agreement is for a period of 18 years and in case the house owner moves out of the house the Sun Run lease shall offer you three options firstly, the lease can be transferred in the name of the new homeowner, secondly, you can buy out the remaining agreement and thirdly the system can be bought at a predetermined cost.

Qualifying For the Lease

In order to qualify for the lease, a good to excellent credit is required and an ability to pay is also determined. However, the Sun Run says that other than the FICO Score it takes more things into their consideration for qualifying for the lease as well. The Lease agreement does not place any kind of lien on the home, or dip into the home equity.

Maintenance Forms a Part of the Lease Payments

The lease payments includes the maintenance of the equipment as well, the good news is that it also includes the inverter, which usually starts creating troubles between twelve to fifteen years of its installation.

The First Year Lease Program Payment

The first year of the lease program payment, which combines the solar lease and utility bill, is calculated by the Sun Ray Lease to be equal to what is being already paid by the home owner.

This means that no saving should be expected for the first year of lease, the savings shall start to accrue in the next 17 years of lease.

Increment Provision of the Lease

SUN RUN Solar Lease

For the next 17 years of the lease program the lease bill shall rise by 2.9%, as opposed to the utility raise which may be much higher.

Utility Rates Raise

The utility rates have risen in the past years at a rate of 5% annually but it is feared that in the future it may rise at a higher rate because of the fast depletion of the natural resources and the global economic crisis.

The Climate Change Legislation

The Climate change legislation which is running through the Congress and California demands that the utilities buy more renewable energy. With this it is quite evident that the electricity rates may rise at least by 5%.

30% Tax Credit Offered By the Federal Government

As the Sun Run is technically the owner of these panels, all the incentives including the Federal tax credits and renewable energy credits is collected by them. However, Sun Run says that it incorporates all these credits and incentives which it receives in your lease price. This may actually prove to be good for the upper middle and the middle class, who for themselves may not be able to take full advantage of this 30% tax credit offered by the Federal Government.

 

 

 

 

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