Solar awareness is rising in America, but many people still have questions. In this article, the team from Affordable Solar, the leading solar company in Albuquerque, walks you through the legalities of installing a system in your home.

The Different Purchasing Options

Part of solar awareness is understanding the three main purchasing options.

1. Purchase of Solar System

You take on ownership of the system and all its components once you finish paying for it. As you own it at the end of the term, there is no ongoing payment afterward. You may opt for financing or access your mortgage if you need assistance.

The savings are significant as you own the energy the system produces. You no longer have to pay for electricity and can sell excess power back to the grid. This is the only agreement where you may qualify for tax credits or incentives to offset the cost.

2. Solar Power Purchase Agreement (PPA)

In this situation, the company retains ownership of all the equipment. Contracts of this nature may include an option to buy the gear at a later stage.

You essentially agree to pay for all the electricity the system produces over the term. The cost you pay can exceed the amount of energy you use, and you may still have to pay for some electricity from your utility company.

This type of agreement requires careful consideration because the system’s output determines your savings. The company typically charges you less than the utility company, so you can save money; however, they will increase the rate over time.

At some point, the costs could outweigh the potential savings, so homeowners must carefully consider these arrangements.

3. Lease Agreement

Again, the company retains ownership of the units, but they may let you purchase the system later. This can be beneficial because it’ll usually include maintenance plans and might make allowances for upgrades.

Instead of paying for the electricity the system generates, you lease the equipment. Your payment is thus independent of the cost of the electricity or your usage thereof. The system is an affordable way to use solar energy without a large initial capital outlay.

However, if you never have the option to buy the equipment, it’s an ongoing expense that adds up over time.

How Will These Agreements Impact Your Home’s Saleability?

Increasing solar awareness means buyers see added value in your home when you buy the system. You can sell it with the house, although you must pay off any outstanding balance or transfer the loan first. Alternatively, the company may register a security interest against the property.

A PPA makes things more complicated; you will either have to pay off the agreement or get the new owner to take it over. The company may also allow you to pay to move the system to your new home and they will register a UCC (Uniform Commercial Code) against the title deed.

A leased system is the most complicated of the three options. Your buyer will have to take over the lease, or you will have to buy out of the contract. The company may also agree to move the system to your new home for a fee.

Understanding the implications of each option is essential before signing up. It pays to read through the contract and ensure you thoroughly understand it.

If you’re in New Mexico, you may contact the State Bar of New Mexico to inquire about the State Bar General Referral Program. They will arrange a half-hour consultation with a local attorney for $35, where you can learn more about your consumer rights.

What Disclosures Must the Contractor Make By Law?

In New Mexico, the firm must give you a disclosure form to highlight the most critical aspects of the contract. Reading this carefully and asking questions before taking the final step is beneficial.

You have the right to decline the contract if you feel uncomfortable with any of the terms or are unsure of something.

What Are Your Rights?

Whichever agreement you choose, you have several rights regarding solar awareness. These include the right to:

• Ask for a copy of the contract before you sign it
• Take some time to review the terms and ensure you understand them
• Receive a Notice of Cancellation that explains your right to cancel door-to-door transactions
• Cancel the contract for any reason within three days of signing it

Dealing with a local reputable company with a verifiable track record better ensures you get the best protection and deal.

Get Your Free Estimate Today!

With a 23-year track record of exceptional service, Affordable Solar is your reliable choice in Albuquerque. We are leading the fight toward solar awareness and clean energy. Contact us at 505-944-4220 for your free estimate today.