Sunrun Solar as a Serice

Solar-As-A-Service

Learn more about Sunrun-owned systems also called solar-as-a-service. This includes leases and power purchase agreements.  

• Understand the details of solar-as-a-service including payment options, coverage and the benefits it offers to customers

• Know how to discuss solar-as-a-service with a customer

• Have confidence navigating the most frequently asked questions you are likely to hear from your customers

Solar-as-a-service is our most popular product nationwide and gives homeowners a simple way to use clean energy. Understanding the product and nuances allows you to explain how simple solar can be for your customers.

Even if solar-as-a-service is not the preferred product in your market, you will be using a consultative approach and should recommend the best option based on a customer's situation that Sunrun offers. 

Sunrun created a solution: Solar-as-a-service, or more specifically, the power purchase agreement (PPA). Customers can use clean energy without upfront cost, taking on debt, or responsibility that comes with a purchase.

There are many names for solar-as-a-service. You'll see one of two names on an agreement. In some markets, it's called a Power Purchase Agreement or PPA. Some markets require it to be a lease with slightly different terms. Finally, you may hear other terms like: third-party-owned, TPO, or Sunrun-owned that all describe solar-as-a-service.

• Purchase affordable solar electricity

• Lock in their price for electricity for 20 or 25 years (length varies by market not by customer choice)

• Prepay for their electricity or install solar with no upfront cost

• Protect themselves from utility rate increases

• Have a more predictable (often lower) electric bill

Solar-as-a-service allows homeowners to:

• Install solar without worrying about maintenance, insurance, or liability of the system

• Choose their preferred payment method either paying monthly or upfront

How does it work?

Your customer's needs along with your input determine the system design.  Based on system size, location, and sun hours, our software comes up with an estimate of how much electricity it will produce.

The customer either pays upfront (prepaid) or with a fixed monthly bill based on the electricity the system is expected to produce.

Sunrun installs the system and takes care of it for the lifetime of the agreement, according to the agreement terms. This includes inverter and battery replacement and fixing issues not caused by abuse or misuse.

Sunrun proactively monitors the system for the lifetime of the agreement to ensure it is working and guarantees the production.

Sunrun owns the system, the customer owns the electricity the panels produce

Predictable cost for 20 or 25 years of electricity

Sunrun maintains, monitors, warrants, and insures the system

90% performance guarantee*

Sunrun claims the tax credit and incentives*

The agreement is transferable if the home is sold

Payments

With solar-as-a-service, customers can pay monthly or can prepay the entire term of the agreement.

Monthly

• $0 down, the first payment is due 60 days after permission to operate (PTO) which is when the system is activated

  • Requires no initial investment or deposit - assuming the home is solar ready. There may be additional costs necessary (i.e. re-roofing) to get the home ready to install solar 

• Annual increase (also called annual escalator)

  • The choice is based on customer preferences, how long the customer plans to be in the home, their goals, etc.

  • No annual escalator: For customers who want to lock in their rate from the beginning with no increase for 20/25 years. This rate starts higher.

  • With an annual escalator: For customers who want to save more from day 1 with a predictable annual increase. The exact yearly increase varies by market. This rate starts lower and meets the no escalator rate about the halfway point of the agreement term.

  • At the end of the agreement, the customer pays a similar amount with either option.

Prepaid

• $500 is due at signing the agreement. It is payable with a checking or savings account, or a credit or debit card.

• The remaining balance is due upon installation.

• Customers can receive additional coverage and support that that they wouldn't if purchasing the system outright

• Overall payment total is discounted relative to what the customer would pay for a monthly solar-as-as-service option. 

Why would a customer choose a lease/PPA?

• Wants solar made simple

  • Use clean energy without taking on debt or responsibility

  • Maintain a similar level of responsibility as with their utility

• Desires predictability and peace-of-mind

  • Utilities can't guarantee future rates and increase rates often due to maintenance costs for outdated infrastructure and exacerbated by natural disasters

  • Gain control and predictability by knowing exactly what they’ll pay for power for the next 20+ years

• Looking for instant savings on their electric bill

  • Lock in an affordable, predictable rate

  • Savings grow as utility rates rise

Why wouldn’t a customer choose a lease/PPA?

• Desires ownership

  • Leasing is not for everyone. Some people lease solar, others buy as some see owning the panels as the most valuable option.

• Desires to claim tax credits personally

  • Tax credits apply differently for each person depending on their specific financial situation. For some, claiming the tax credit themselves can be a better deal.

• Desires greatest added value to their home

  • Many studies show adding solar to a home increases the home's value. Some see owning the panels as the most valuable option. Customers focused on adding value to their homes may see this as a driving factor. 

1 What happens if I move?

Contact Sunrun before selling your home and we’ll support you through the process. We’ve already helped tens of thousands of customers transfer their service!

2 How do I make my monthly payments?

The easiest way is through ACH (automated clearing house) payments! Your monthly payment already reflects a $7.50 discount for this method. You can set this up through your mySunrun app, mysunrun.com or directly at Checkout in the Sales Platform. 

You can also use a check or money order. Be aware that your payments will be $7.50 higher than reflected on your proposal.

You cannot pay by credit card.

3 Is there a lien on my house?

No! We file a UCC-1 fixture filing showing that we have interest in the solar system but not in your home.

Solar is removable equipment so there are no liens or security interests. 

If you want to refinance your home, give us a call and we will temporarily remove the fixture filing at our cost. Once the refinance is complete, the UCC-1 fixture filing will be re-instated. 

4 Do I have options to buy the system down the road?

Yes! You can purchase your system for fair market value any time you are selling your home, at the end of year 5, or at the end of the agreement. An independent appraiser determines the fair market value. If the customer purchases their system, they will assume responsibility for maintenance, insurance, etc.

5 What are my options at the end of the agreement?

Remove the system at no cost and have the roof restored to similar condition prior to installation

Remove the system at no cost and upgrade to a new system

Renew the agreement for a set timeframe (5 years in California, 1 year in all other markets)

Purchase the system at fair market value