Path-Q Solar

What information should I gather before comparing solar ownership with a third-party agreement?

Answer

Gather comparable system designs, total costs, payment terms, production and degradation assumptions, warranty and maintenance responsibilities, and exit or transfer terms. Compare ownership and a third-party agreement over the same expected period and usage assumptions, including obligations that may affect a future sale or move.

Key points

  • For ownership, include cash or financing cost, maintenance, replacements, warranties, and retained system value.
  • For third-party arrangements, include payment escalators, minimum terms, buyout or termination rules, and production guarantees.
  • Compare who owns incentives or other benefits, who handles repairs, and who controls the monitoring account.
  • Model low-production, roof-work, sale, relocation, and end-of-term scenarios.

What it depends on

  • System design and expected energy use
  • Financing or agreement terms
  • Ownership, maintenance, and warranty allocation
  • Expected property ownership and exit timing

Risks and trade-offs

  • Lower initial payment does not necessarily mean lower total cost.
  • Third-party contracts can create transfer or cancellation constraints.
  • Ownership provides more control but places performance, repair, and financing risk on the owner.

Information you may need

  • Complete purchase, loan, lease, or service agreement
  • Production model and degradation assumptions
  • All fees, escalators, buyout, transfer, and termination terms
  • Warranty, maintenance, replacement, and monitoring responsibilities

Your next step

What to do next

Create a side-by-side lifecycle comparison using the same system output, ownership period, and exit assumptions before choosing a structure.

Path-Q

Find the right next step

Answer a few questions and we’ll narrow your options.

Loading…

SQ02073