Lease
How are lease customers billed?
Lease customers are billed monthly for the use of the system, this is a fixed and set amount. The contract lists the price for each year in the contract, the customers can refer to the Agreement for details.
Does PPA Fixed or PPA Variable Agreements have the option to purchase?
You can purchase this System: (i) on the five (5) year anniversary of the beginning of the Term and every annual anniversary after the five (5) year anniversary; and (ii) at any time after the five (5) year anniversary of the beginning of the Term, when you sell your Home; and (iii) if SolarCity ever ceases its operations. In each of (i), (ii) and (iii) above, the price you will pay for the System will be the System’s fair market value (“FMV”). A third party independent appraiser will be retained to compute the System’s FMV. SolarCity’s maintenance and repair obligations under the Limited Warranty (Exhibit 2) will continue when you purchase the System until what would have been the end of the original Term.
In addition to purchasing the System at the end of the Term, you have the option to purchase the System prior to the end of the Term as detailed below. To exercise this option you must be in good standing under this Power Purchase Agreement and you need to give us at least one (1) month’s, but not more than three (3) months’ prior written notice.
Do cash customers have the option to purchase the system?
No, they already purchased the system.
On MyPowerLoans, If the customer elects automatic deduction, they are eligible to receive a ____ discount on the Annual Percentage Rate (APR) charged to the outstanding principal.
They are eligible to receive a 0.5% discount on the Annual Percentage Rate (APR) charged to the outstanding principal. They can sign up ACH at any time to receive the discount on their next monthly bill. Also, if they elect to discontinue ACH, they will not receive the discount on their next monthly bill.
What states are a good fit for customers who want subscription agreements?
Subscribing is a good fit for customers who:
What are the purchase options on a lease agreement?
Most lease agreements state the below verbiage.
5. Purchase Option.
You do not have an option to purchase the System at the end of the Lease Term.
_____________________________________
In order to confirm if the customer does or does not have a purchase option, please review the contract to confirm because some lease agreements have purchase options.
How does billing work on a Power Purchase Agreement Variable?
The customer is billed for the power produced by the system. The contract lists the kW/hr, to calculate the amount the customer pays each month take the production and multiple it by the kW/h rate.
On a cash,loan and mypower agreement, what happens after the warranties are expired?
Customer owns the system and would be responsible for all maintenance request if not within the warranty period.
What does Re-amortization mean on a MyPowerLoan?
means we will recalculate the monthly payments during the repayment term. Since monthly payments are determined by the equivalent kWh rate, a re-amortization will mean a lower equivalent kWh rate.
The Rate Reduction Payment re-amortizes the loan, meaning the equivalent kWh rate is lowered so that the required payment is lower. This is why there is a rate per kWH before the payment and after the payment.
What is the difference between Subscription vs. a Lease or PPA option?
Customers who subscribe can cancel anytime - Lease or PPA options require 20 year commitments and are no longer offered.
If the system produces more than expected on a lease agreement, what occurs?
Customers get the additional energy at no extra charge!
IF the system produces less than expected, THEN we will refund them.
What is the difference between a PPA Variable and PPA fixed Agreement when it comes to the production guarantee?
PPA Variable customers are only billed for monitored energy produced. If we bill you for Estimated Production because your System is not reporting production to SolarCity, and we subsequently determine that we have either overestimated or underestimated the actual production, then we will adjust the next bill downward (to refund overbilling) or upward (to make up for lost billing). You will not be charged for Estimated Production when the System is not producing electricity due to SolarCity’s fault, or if it’s due to grid failure or power outages caused by someone other than you
PPA fixed customers have a Power Production Guarantee, monthly payments are fixed, - Tesla will pay the customer back if the system under-produces. Reviews can take place every 1 or 2 years. Check the agreement to confirm.
List 3 maintenance request that the customer will be responsible for if requesting Tesla to complete work.
Pest Abatement, Removal & Re-installation,Equipment removal and re-installation
What are the two type of Solar Loans?
Mosaic and Sunlight
Can customers cancel their subscription agreement?
If a customer decides to cancel a subscription, we will deactivate the system. The system remains on the customer's roof unless they pay to have it removed.
Can the customer claim tax incentives on a lease agreement?
Tesla claims any and all federal, state, and utility incentives and rebates.
Finish the sentence below?
The KWH rate will never increase by _____.
2.9%
The rate you pay for electricity, exclusive of taxes, will never increase by more than 2.9 % per year.
What are some benefits of purchasing a Cash System?
Tax incentives(Based on tax liability)
Customer owns system(No bills)
Saving the planet(If you dont get this one right then you dont get credit, HAHAHAHAHAHAHA! Forreal though!
What is a Solar Loan?
The customer signs up to purchase a system from Tesla and agrees to finance it through one of Tesla's financing partners. The loan does not require prepayment, allowing the customer to move forward with no upfront costs. To provide the customer with the most flexibility, the loan payments are set for the loan term and are lower in the first 18 months. At month 18, the customer has the option to make a paydown equal to 30% of the original loan amount. Making this payment keeps the monthly payments the same at the first 18 months.
Can customers purchase the system after a period of subscribing to it?
Yes. Depending on the version of the agreement the customer may be able to buy the system at anytime or after 5 years.
If the customer experiences a system failure on a lease agreement. When we will the customer be reimbursed?
During the Performance Review Period.
List the pro's and con's of having a PPA Variable, PPA fixed and PPA Full-prepay Agreement?
Variable/Fixed:
Pros:
They’re already in a PPA, with the utility company. REMEMBER! with solar, they pay for PRODUCTION (not consumption like with the utility).
Price protection - they know what their rate will be for 20 years. Pay As You Go offers the lowest pricing available with no down-payment.
Option to buy - in most AHJs.
Tesla owns it, so we take care of it - customer does not need to insure the system or worry about repairs.
Typically no taxes on electricity (depending on state).
IF the system produces less, THEN they pay less.
No tax liability required for savings (Tesla claims all incenives and offers the customer a lower price).
Cons:
Full Pre-Pay
Pros:
Cons:
What loans pay interest?
Mosaic, Sunlight, and Mypowerloan
Subscribing is not right for customers who?